Italy: boost to employee purchasing power in 2020 budget

Under the draft budget approved by Italy’s Council of Ministers, overnight between 15 and 16 October, the tax burden on employees will be reduced from next year. The measure should take effect from July 2020 and is to release some €3 billion in 2020 and between €5.5 billion and €6 billion in 2021. Speaking to Il Sole 24 Ore on Thursday, Italy’s economy and finance minister Roberto Gualtieri said: “As regards the methods of application, we are currently in discussions with social partners.” According to the Italian press, the country’s economy and labour ministries are looking at an abatement for income tax (deducted at the source) for workers whose gross annual income is no more than €35,000. The measure could benefit 4.5 million workers whose gross annual income is between €26,000 and €35,000, and were not eligible for the €80 “bonus” that was introduced by the government of Matteo Renzi. This is the main measure in the area of labour planned in the draft budget.