On 1 January 2024, Law no. 213 of December 30, 2023 (“Budget Law 2024”) entered into force.
The following is a summary of the law’s most important new features.
Tax wedge cut (Art. 1, paragraph 15)
Exceptionally, the cut in the contribution wedge for the share borne by employees has been confirmed throughout 2024. The measure does not affect the 13th month’s salary instalment and domestic work relationships are excluded.
Deduction of benefits (Article 1, paragraphs 16 - 17)
Limited to the 2024 tax period, the limit of exclusion from the computation of the employee's taxable income for goods sold and services provided to the employee ("fringe benefits") of EUR 258.23 is raised to:
- EUR 2,000 for employees with dependent children for tax purposes;
- EUR 1,000 for other employees.
Amounts paid or reimbursed to the employee by the employer for the payment of domestic utilities for integrated water service, electricity and natural gas and expenses for the lease of the first house or for interest on the mortgage related to the first home are also included in the exemption regime.
Exemptions concern the taxable base of social security contributions.
Tax deduction on performance bonuses (Art. 1, paragraph 18)
Regarding performance bonuses and sums paid during year 2024, it is confirmed the halving, from 10% to 5%, of the rate of the substitute tax on IRPEF (Italian personal income tax) and regional and municipal surcharges provided for performance bonuses and other forms of participation in business profits. No other amendment to the regulation occurred.
Facilities for workers in the tourism, hotel and spa sector (Art. 1, paragraph. 21)
As already provided for in Decree Law No. 48 of 4 May 2023 (converted with amendments into Law No. 85 so-called "Labor Decree" of 3 July 2023), the facilities for workers in the tourism, hotel and spa accommodation sector are also confirmed for the year 2024.
Specifically, for the period January-June 2024, for employees in the sector (who earned in 2023 an income from employment of up to EUR 40,000) and for employees in the restaurant and food and beverage service industry, a special supplementary treatment has been provided that is equal to 15% of the gross remuneration paid in relation to night work and overtime work performed on holidays. The benefits do not contribute to income.
Retirement pension (Art. 1, paragraph 125)
The right to a retirement pension, subject to a minimum contribution period of at least 20 years, is achieved if the gross monthly amount of the pension is at least equal to the amount of the social allowance (previously, the amount was required to be at least 1.5 times this allowance).
In addition, the right to an anticipated pension (subject to a minimum contribution period of at least 20 years) is achieved if the gross monthly pension amount is at least:
- 3 times the amount of the social allowance (previously, 2.8 times);
- 2.8 times the amount of the social allowance, for women with one child;
- 2.6 times the amount of the social allowance, for women with two or more children.
Until the achievement of the requirements for access to the retirement pension, the gross monthly amount related to the anticipated retirement benefit may not be recognised for more than 5 times the minimum monthly benefit provided by the current legislation. A window of three months from the date of accrual of the overall conditions for access to the early retirement pension has been provided. Contribution requirements for access to early retirement will have to be adjusted to life expectancy.
“Ape Sociale”: amendments (art. 1, paragraph 136)
For year 2024, the age requirement for access to the social “APE Sociale” is raised to 63 years and five months, up from the previous requirement of 63 years.
“Opzione Donna”: new conditions (Art. 1 paragraph 138)
For 2024, the age requirement for access to “Opzione Donna” is raised. From 1 January 2024, 61 years of age (previously 60 years of age) are required. Therefore, female employees who, by 31 December 2023, have accrued a contribution period of 35 years or more and a statutory age of at least 61 years, reduced by one year for each child up to a maximum limit of two years, and who are, alternatively, unemployed, have a reduction in working capacity of 74 percent or more, or caregivers, are eligible for anticipated retirement.
“Quota 103” (Art. 1, paragraphs. 139 - 140)
Confirmed for 2024, the measure “Quota 103” with amendments for those who accrue the requirements in the year 2024:
- calculation of the allowance on total contributory basis;
- amount of the allowance payable in an amount equal to a maximum of 4 times the minimum INPS treatment (until the attainment of the retirement pension);
- seven-month window for private sector employees and a nine-month window for public sector employees.
"Bonus Maroni"
The employee accruing the requirements to access “Quota 103” in the year 2024 will be eligible to request exemption from the payment of the contribution portion, thus having it credited in his or her payslip.
Refunding of CIGS (Art. 1, paragraph 172)
During the year 2024, an increase has been provided in the limit of EUR 50 million in the authorisation for expenses set forth by current legislation for the Extraordinary Wage Guarantee Fund (CIGS) for a company’s reorganisation or crisis by the "Fondo sociale occupazione e formazione"
Companies of national strategic interest that have ongoing reorganisation plans (Art. 1, paragraph 175)
For companies with at least 1,000 employees, a decree of the Ministry of Labour has authorised an additional period of extraordinary wage supplementation fund, exceptionally and upon request, and as an exception to Articles 4 and 22 of Legislative Decree No. 148/2015 (in continuity with the protections already authorised) until 31 December 2024 (with some exceptions regarding the activation procedure of the fund), in order to safeguard the employment level and the heritage of skills of the company itself. These treatments are recognised within the limit of expenses equal to EUR 63.3 million for the year 2024.
Parental leave: increased protections (Art. 1, paragraph 179)
Regarding parental leave, the payment of an allowance equal to 60% for one month additional to the first, instead of the current 30 percent, has been added to the current allowance equal to 80% of a one month’s salary within the sixth year of the child's life.
For the year 2024 only, the amount of the allowance granted for the month additional to the first is increased to 80% of salary, instead of the ordinary 60%.
The provision applies with reference to employees terminating, after 31 December 2023, the period of maternity leave or, alternatively, paternity leave.
Tax relief for female employees with children (Art. 1, paras. 180 - 182)
For the payroll periods starting from 1 January 2024 to 31 December 2026, a 100% exemption from social security contributions is granted to female employees with open-ended employment relationships, excluding domestic work relationships, who are mothers of three or more children, until the youngest child reaches the age of 18, up to an annual maximum limit of EUR 3,000 prorated on a monthly basis.
For the year 2024, on an experimental basis, the exemption is also granted to a working mother of two children with an open-ended employment relationship, excluding domestic work, until the month of the youngest child's tenth birthday.
