Productivity Bonuses Launch Which continues to grow even in July. As shown by the update to the 15th of last month in the Labor Department report, compared to the same period in 2023, contracts with bonuses that companies recognize for employees based on the results achieved increased by 23.9%, bringing the total number since the beginning of this year to more than 15 thousand.
Reduce taxes on productivity bonuses
With Law No. 197/2022, the government has taken action, confirmed in the 2024 Budget Law, to stimulate the use of these bonuses that allow the growth of employees’ salaries, by reducing taxes from 10 to 5%.
In a recent circular, the Revenue Agency indicated that the alternative tax applies to an amount of up to Total 3 thousand euros It concerns cash bonuses recognised for private sector employees whose income from work does not exceed 80,000 euros, which were obtained in the previous year as a result of increases in productivity, profitability, quality, efficiency and innovation, as well as funds received in the form of participation in the company’s profits.
Furthermore, on a pilot basis for the biennium 2024-2025, a possibility of manoeuvre has also been introduced for those registered in one of the social security systems managed by INPS, who do not have a pension and do not have seniority contributions as of December 31, 1995, to recover the periods until the end of 2023 between the first and last approved contribution year, with a requestBurden of Redemption To the employer using production bonuses.
The recoverable periods cannot exceed 5 years, but can also be non-continuous, while the amount is deducted from your business income or self-employment income and does not contribute to income formation.
Figures from the Ministry of Labor
As the latest data presented by the Ministry led by Marina Calderón shows, the tax exemption on productivity bonuses continues to have its effects month after month: as of July 15, 2024, some 15,186 contracts Active in the Ministry of Labor database that provides for the production grant, 7703 were deposited between January and the first half of July 2024, 2162 during the past month (June 15/July 15) and 1077 in the first half of the current month.
The agreements concern more than 4 million workers (4,446,549 to be precise), out of 3,074,952 employees referred to company contracts and 1,371,597 employees referred to regional contracts, for an average annual salary of €1,509.30.
Corporate contracts represent the largest share, but in percentage terms, regional contracts recorded greater growth compared to 2023, with an 83% growth compared to last year (from 1,503 to 2,750).
47% of total contracts are attributed to companies that have Less than 50 employeesWhile the remaining share is divided between companies with more than 100 employees (38%) and companies in the mid-range with between 50 and 99 employees (15%).
According to Il Sole 24 Ore, based on data from an analysis carried out by Caf Acli which concerns about 1.1 million 730/2024 models filed until July 12, “employees who received a bonus from the employer exceeded in one year from 7.2% to 9.4% of the total taxpayers. While the average amount of the premium increased by about 194 euros (from 1,167 to 1,362 euros)”.
the Objectives However, the contracts specified in the contracts are different: 12,156 for productivity, 9,339 for profitability, 7,497 for quality, while 1,402 provide for a participation plan and 8,989 for corporate welfare measures.
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