Subject: Budget Law 2023 – labour part (Law 197/2022)

 

Summary of the main innovations contained in the Budget Law 2023 – labour part.

 

EXEMPTION FROM EMPLOYEE CONTRIBUTIONS

As for 2022, also for 2023 the exemption on the employee’s share of IVS social security contributions is recognised to the extent of 2% for monthly social security taxable income up to € 2,692.
New for 2023: the exemption is recognised at the rate of 3% for monthly social security taxable income up to EUR 1,923.
euro.
NB: the relevant INPS instructions are now awaited.

 

REDUCTION IN TAX RELIEF ON PRODUCTIVITY BONUSES

Reduction from 10 to 5 per cent of the substitute tax rate applicable on the amounts paid in the year 2023,
– for performance bonuses of variable amount whose payment is linked to increases in productivity, profitability, quality, efficiency and innovation, (mandatory by company collective bargaining) as well as
– on sums paid in the form of participation in the company’s profits,
within the limit of EUR 3,000 (EUR 4,000 if the company equally involves workers in the organisation of work).
N.B.: rule applicable to holders of employment income not exceeding, in the year

 

SINGLE AND UNIVERSAL ALLOWANCE

50% increase in the AUUF amount for families
– with children under 1 year of age
– with 3 or more children aged between 1 and 3 years, for ISEE levels up to € 40,000.00.
The flat-rate increase in the allowance for families with four or more children is raised from € 100 to € 150 per month.
In addition, the increase for disabled children up to the age of 21, which had only been envisaged for 2022, is made stable.

 

PARENTAL LEAVE

The parental leave allowance is increased from 30 to 80 per cent for working mothers/parents, for a maximum duration of 1 month up to the child’s sixth birthday.
The increase applies to working mothers/fathers who end their period of maternity or, alternatively, paternity leave (both compulsory and alternative) after 31 December 2022.

Attention:
this is not an additional month but one of the months already due to the mother and/or father.

 

SUBSIDISED HIRING FOR THE PERIOD FROM 1 JANUARY TO 31 DECEMBER 2023

Young people
The 100% contribution exemption provided to encourage stable youth employment is extended to new permanent hirings and to the conversion of fixed-term contracts into open-ended contracts made from 1 January to 31 December 2023.
The exemption will be granted for hirings relating to persons who have not completed their 36th year of age and have not been employed on an open-ended contract with the same or another employer during their entire working life.
The exemption is available for 36 months (48 for regions in the ‘Mezzogiorno’) up to an annual limit of EUR 8,00.

Women
Extension of the 100% tax exemption for the hiring of unemployed women (with specific requirements) with open-ended, fixed-term contracts and for the conversion of fixed-term contracts into open-ended contracts for 18/12 months within the annual limit of €8,000.

 

NEW FOR 2023:

Beneficiaries of the Citizenship Income
All employers who hire permanent citizenship income beneficiaries are entitled to a 100% contribution exemption for 12 months, within an annual maximum limit of €8,000.

 

OCCASIONAL WORK PERFORMANCE (family booklet and occasional services)

The overall maximum amount within which the user may use occasional work services is raised from € 5,000 to € 10,000 per year; the overall limit of € 5,000 for individual workers among all principals and of € 2,500 for individual workers for each principal remains.
The novelty also applies to work activities of an occasional nature carried out within the scope of activities under ATECO code 93.29.1 (dance halls, nightclubs and the like).

Another novelty:
recourse to the occasional work contract may be made by users who have no more than 10 (no longer 5, provided for until 31.12.2022) permanent employees on their payroll.

Attention
The prohibition on the use of occasional ancillary services remains:
– in construction and related activities;
– in the execution of contracts and services.

 

TIP TAXATION

In accommodation and food and beverage establishments, “sums given by customers to workers as gifts, including through electronic means of payment” (so-called tips), paid by customers to workers, constitute income from employment and, unless expressly waived in writing by the worker, are subject to substitute tax on IRPEF and regional and municipal surcharges of 5%, within the limit of 25% of the income received in the year for the relevant work services.
Deduction from taxation is envisaged only for employees with an income of less than €50,000, unless expressly waived in writing by the employee.

p.s. for the application of this novelty the client must inform the undersigned firm.

 

AGILE WORK

As of 1 January 2023, the right to request and obtain smart working ceases to apply
– for workers with children under 14;
– it remains instead for frail workers until 31 March 2023.

IN DEPTH

Frail workers: suffering from serious chronic illnesses with poor clinical compensation (so-called fragile workers), as identified by a Ministry of Health decree of 4 February 2022, published in Official Gazette no. 35 of 11 February 2022. These are, to give just a few examples, patients with a marked impairment of the immune response, who have undergone a transplant; or are cancer patients undergoing treatment with immunosuppressive drugs, or subject to dialysis; or patients who have three or more of the following pathological conditions: ischaemic heart disease; atrial fibrillation; heart failure; stroke; diabetes mellitus; chronic obstructive pulmonary disease; chronic hepatitis; obesity (these are all pathologies and conditions certified by doctors).
For these people, therefore, the employer favours agile working, even by assigning them to another task in the same category or area of
as defined by collective agreements, without any reduction in salary. However, the provisions of the Ccnl, if more favourable, shall apply.

 

INCENTIVE TO CONTINUE WORKING ACTIVITY

Incentive for employees who
– have reached by 31 December 2023 the requirements for early retirement (so-called Quota 103),
– who decide to remain in service.
The interested party must decide whether
– continue to pay their share of contributions due to the General Compulsory Insurance for Invalidity, Old Age and Survivors and to its substitutive and exclusive forms, in order to increase the amount of their future pension
– enjoy the incentive, renouncing, for pension purposes, the contribution credit of the portion due, in relation to the period covered by this option, and receive directly, in the pay packet, the value of the portion itself.

ATTENTION:

– the sum corresponding to the employee’s share of contributions that the employer does not pay to the Social Security Agency is paid in full to the employee;
– similarly to what has already been provided for Quota 100 and Quota 102 pensions, the Budget Law 2023 establishes that the
Similarly to the Quota 100 and Quota 102 pensions, the Budget Law 2023 establishes that the Quota 103 cannot be accumulated with income from employment, parasubordinate employment or self-employment, from the first day of the treatment and until the age at which the ordinary old-age pension is due (currently and at least until 31 December 2024 equal to 67 years – Article 24, Paragraph 6 of Decree Law no. 201/2011).
Until the age of retirement, it is possible to receive, during the period of enjoyment of the subsidised experimental benefit, only income from occasional self-employment under Article 2222 of the Civil Code, up to the limit of €5,000 gross annual remuneration.