Heavier paychecks for almost 1,2 million civil servants. In fact, starting from the month of August, the tax wedge cut established by Work Decree. Translated into simple words: the net salary will be a little higher. This was announced by the Ministry of Economy and Finance through an article published today, Thursday 20 July.
Civil servants: the cut of the tax wedge is coming
The note from the Mef communicates that they have been define the payment methods to civil servants of increases in payroll deriving from the increase in the cut in the tax wedge envisaged by the Labor Decree for the period July - December 2023.
As happened with the previous reductions in the tax wedge, the tax relief will come paid by NoiPa on the slip of the month following the one in which the benefit is recognized.
Therefore, the payment referred to July monthly payments will be paid with the August slip. The same mechanism will also be applied for the following months up to the month of December 2023 which will be paid in January 2024.
Civil servants: how much is the tax wedge cut and who will benefit
The work decree established that for 6 months, from July to December 2023, the cut in the tax wedge will increase up to 6% for gross monthly wages of less than €2.692 e up to 7% for those less than 1.923 euros per month gross employee.
In essence, this is a significant increase in the tax wedge, which translates into one relief on INPS withholding taxes, aimed at civil servants, with particular attention to the pay terms of Public Administration employees.
According to Mef calculations, public employees managed through the NoiPA system who will benefit from the measure established by the Government and therefore will have heavier payrolls are in total 1,195 million. 860 thousand those who will be entitled to a cut of up to 6%, 350 thousand to a cut of up to 7%.
