Cutting the tax wedge: rising wages.
Here’s how much payrolls will rise starting in January as a result of the cut in labor costs. The maneuver includes the cut of the tax wedge.
The budget law has received the go-ahead in the Chamber. The text approved by the Meloni government has been approved. Among the cornerstones of the 35 billion euro economic package is the cut in the tax wedge. The paychecks of millions of workers will be bigger. The cut in the tax wedge went from 2% to 3%, so the threshold was raised to 25,000 euros. Here’s how these savings translate:
- for those who earn 10,000 euros a year, the increase is equal to 231 euros a year
- for those who earn 12,500 euros it is 288.75 per year
- for the 15,000 euro range, the increase is 346.50 per year
- for incomes of 17,500 euros it is 345.69 per year
- for the 20,000 euro range, the increase is 395.08 per year
- for those who earn 22,500 it is equal to 444.46 per year
- for the 25,000 euro range, the increase is 493.85 per year
For those with a gross salary of 10,000 euros, the cut in the tax wedge will lead to an increase in salary of 19 euros per month . For incomes starting from 15,000 gross per year, the increase is 9.60 euros per month, respectively: 124 and 375 euros per year. For gross wages of 20,000 euros, the increase will be 11 euros per month.
