The hiring bonus coming with the new budget law will not be a real cut in the tax wedge. According to some advances from La Repubblica, the discount on contributions will be granted only to companies, while workers will continue to pay 9% and therefore will not see their monthly salary grow.
In detail, the project provides for the halving of contributions (from 24 to 12 percent) in favor of companies that hire young people on permanent contracts. The age limit of the workers concerned should be between 29 and 32 years. Il sole 24 ore also speaks of a ceiling on the relief which could rise from the hitherto assumed 3.250 euros up to 4 thousand.
The relief will last three years but it could be structural. In other words, from 2018 onwards - forever - companies will be entitled to a three-year tax deduction on the stable hiring of young people. Cost of the measure: one billion in the first year and 3 when fully operational (ie from the third year).
The real tax wedge cut will arrive in 2019-2020. This is not a simple promise: the rule will be included in the 2018 maneuver and then automatically triggered the following year.
In this case there will be no age limit, but the de-contribution will be much less generous: barely 4 points, of which 2 in favor of the company and 2 in favor of the worker, which will therefore see its paycheck grow, even if only slightly.
The cost of this measure is high: 5 billion a year. A decisive contribution could come from the extension of the electronic invoicing obligation also among private individuals, which should guarantee a good recovery of VAT evasion.
