SUMMARY:
1. THE MAIN CHANGES RELATED TO THE PRIVATE EMPLOYMENT RELATIONSHIP 1
1.1 The facilities for new hires 1
1.2 The new regulations on occasional services 2
1.3 Extension of smart working to March 31, 2023 for frail workers 2
1.4 Parental leave 3
1.5 Tax relief for productivity bonuses 3
1.6 The tax wedge cut of up to 3% for low income earners 3
1.7 Deduction of tips received by staff employed in the hospitality and food and beverage sector 3
1.8 Incentives for retention of workers 3
1.9 Social fund for employment and training 4
2. CHANGES TO THE PENSION SYSTEM 4
2.1 The so-called Flexible Early Retirement 4
2.2 Women's Option 4
2.3 Indexing pensions 5
2.4 The extension of the Ape sociale 2023 5
3. WHAT'S NEW IN THE AREA OF CITIZENSHIP INCOME 6
4. THE MEASURES TO SUPPORT THE SELF-EMPLOYED (THE SO-CALLED FLAT TAX) 6
1. THE MAIN CHANGES RELATED TO THE PRIVATE EMPLOYMENT RELATIONSHIP
1.1 The facilities for new hires.
Among the main labor-related innovations of the Budget Law 2023 are undoubtedly the facilities for new hires, which are provided with respect to workers who are beneficiaries of the citizenship income, young workers and female workers.
Specifically, in order to promote the stable inclusion in the labor market of the beneficiaries of the citizenship income, private employers who, from January 1, 2023 to December 31, 2023, hire such individuals with permanent employment contracts are granted, for a maximum period of twelve months, exemption from the payment of 100 percent of the total social security contributions to be paid by employers, excluding the premiums and contributions due to the National Institute for Insurance against Accidents at Work (INAIL), up to a maximum amount of Euro 8.000.00 on an annual basis, prorated and applied on a monthly basis.
This contribution exemption is also granted for the conversions of fixed-term contracts to permanent contracts made from January 1, 2023 to December 31, 2023. pg. 2
Similarly, for the promotion of youth and women's employment, the Budget Law 2023 also extends these concessions to new permanent hires and the conversion of fixed-term contracts into permanent contracts made from January 1, 2023 to December 31, 2023, with respect to the latter categories of workers, again up to a maximum limit of 8,000.00 euros per year.
1.2 The new discipline of occasional services
The Budget Law 2023 changes the rules for occasional services, expanding the economic limit for using this particular form of work, increasing the amount from 5,000.00 euros to 10,000.00 euros.
It follows that each user will be able to make use of occasional work services for compensation in amounts not exceeding a total of 10,000.00 euros, with reference to the total number of providers.
There is also provision for the use of the occasional service contract in favor of users operating in the tourism sector who have up to 10 permanent employees under their employ.
And again, companies in the agricultural sector will be allowed to use--for a period not exceeding 45 days during the calendar year--occasional labor services if they have up to 10 permanent employees on their payrolls.
1.3 Extension of smart working to March 31, 2023 for frail workers
The Budget Law 2023 provides a further extension for access to the simplified smart working regime, exclusively for frail workers and until March 31, 2023, thus beyond the December 31, 2022 deadline currently set by the Aid Decree bis.
Therefore, workers who are in a fragile condition will be able to carry out work in agile mode, even covering different tasks, which fall within the same category or area of classification, as defined by current collective agreements, otherwise it will be possible to carry out vocational training paths.
The conditions of fragility mentioned above are referred to by Circular No. 13/2020 of the Ministry of Labor, which defined them as: "those conditions of the health status of the worker with respect to pre-existing diseases that could determine, in case of infection, a more serious or inauspicious outcome and may evolve on the basis of new scientific knowledge of both epidemiological and clinical type." Specifically affected will therefore be those workers in possession of the recognition of the state of disability with connotation of seriousness provided by Law 104, or certification attesting to a condition of risk resulting from immunodepression or outcomes of oncological diseases or the performance of related life-saving therapies.
The measure will involve both private sector workers and public employees. pg. 3
1.4 Parental leave
Among the measures to support maternity and paternity, Paragraph 1 of Article 34 of the Consolidated Law on the Protection and Support of Maternity and Paternity, referred to in Legislative Decree No. 151 of March 26, 2001, has been amended, providing for an additional month of optional, 80 percent paid leave that can be used by either parent (alternatively) until the child is six years old.
1.5 Reduced taxation for productivity bonuses
Another interesting initiative for private companies has been provided for production bonuses disbursed in the year 2023, for which the IRPEF substitute tax rate increases from 10 percent to 5 percent, provided that the disbursement of such sums is linked to measurable and verifiable increases in productivity, profitability, quality, efficiency and innovation.
1.6 The tax wedge cut of up to 3% for low-income earners
Also in the Budget Law is a tax wedge cut of up to 3 percent for low-income earners.
More specifically, for the pay periods from January 1, 2023 to December 31, 2023, the exemption on the employee's share of social security contributions for disability, old age and survivors is recognized to the extent of 2 percentage points and is increased by an additional percentage point, provided that the taxable salary, parameterized on a monthly basis for thirteen months, does not exceed the monthly amount of 1,923.00 euros, increased, for the accrual of the month of December, by the accrual of the 13th month.
1.7 Deduction of tips received by staff employed in the hospitality and food and beverage sector
In the same vein of facilitating employees, Manoeuvre 2023 provides that in hospitality establishments and food and beverage establishments, the sums allocated by customers to workers as gifts, including through electronic means of payment, paid back to private sector workers with income not exceeding 50 Euros.000.00, constitute income from employment and, unless expressly waived in writing by the employee, are subject to a substitute tax on personal income tax and regional and municipal surcharges at the rate of 5%, up to a limit of 25% of the income received in the year for the relevant work services.
1.8 Incentives for retention of workers
With the aim of encouraging the retention of employees, the Budget Law 2023 provided that, employees who have met the minimum requirements for access to the flexible early retirement pension, as set forth in paragraph 2.1 below, may waive the contributory crediting of the portion of their own contributions related to the General Compulsory Insurance for Disability, Old-Age and Survivors and its replacement and exclusive forms. page 4
As a result of the exercise of the aforementioned option, any obligation on the part of the employer to make contribution payments to these insurance forms of the employee's share shall cease to exist, as of the first retirement date provided for by the regulations in force and subsequent to the date of the exercise of the aforementioned option.
With the same effective date, the amount corresponding to the employee's share of the contribution that the employer would have had to pay to the social security agency, if the aforementioned option had not been exercised, shall be paid in full to the employee.
1.9 Social fund for employment and training
The Social Fund for Employment and Training-established by Decree Law No. 185 of November 29, 2008, into which the Employment Fund established in 1993 merged, with the aim of financing extraordinary active labor policy measures to support employment levels-has been refinanced as of the year 2023, in order to incentivize important income support measures, including: (i) income support measures for employees of companies in the call center sector; (ii) the contribution waiver for companies in bankruptcy proceedings or in extraordinary administration according to the conditions of the law; (iii) the extension of CIGS and mobility in derogation in favor of workers of companies operating in complex industrial crisis areas; (iv) the extension of the extraordinary wage supplementation intervention pursuant to Article 22 bis of Legislative Decree No. 148/2015; (v) training paths aimed at apprenticeship for professional qualification and diploma, upper secondary education diploma and higher technical specialization certificate and training paths aimed at school-to-work alternation.
2. CHANGES TO THE PENSION SYSTEM
2.1 The so-called Flexible Early Retirement.
Important novelties have also been introduced by the Budget Law in the field of pensions; and indeed, on an experimental basis for 2023, employees enrolled in the General Compulsory Insurance and its exclusive and replacement forms can earn the right to an early retirement pension upon reaching a minimum age of 62 and a minimum contribution period of 41 years.
The early retirement benefit is granted for a maximum gross monthly value not exceeding five times the minimum treatment provided for in current legislation, for the months in which the retirement is advanced in relation to the time when such entitlement would accrue.
This pension benefit is not combinable, as of the first day on which the pension takes effect and until the accrual of the requirements for access to the old-age pension, with income from employment or self-employment, with the exception of income from occasional self-employment, up to the limit of 5,000.00 euros gross per year.
2.2 Women's Option
Another important change provided by the 2023 Maneuver in the field of pensions is the right to early retirement benefits recognized with respect to female workers, who by p. 5
December 31, 2022 have accrued a contribution period of thirty-five years or more and a statutory age of sixty years, reduced by one year for each child up to a maximum limit of two years, and who are in one of the following conditions: a) are assisting, at the time of the application and for at least six months, a spouse or first-degree relative cohabiting with a severely disabled person pursuant to Article 3, Paragraph 3, of Law No. 104 of February 5, 1992, or a second-degree relative or kin cohabiting if the parents or spouse of the severely disabled person have reached seventy years of age or are also suffering from disabling diseases or are dead or missing; b) have a reduction in working capacity, ascertained by the competent commissions for the recognition of civil disability, greater than or equal to 74%; c) are female workers who have been laid off or are employees of enterprises for which a round table for the management of the company crisis is active at the enterprise crisis structure referred to in Article 1, paragraph 852, of Law No. 296 of December 27, 2006.
2.3 Pension indexing
In addition, for the period 2023-2024, new criteria for the automatic revaluation of pension treatments were introduced, and in particular: a) for pension treatments altogether equal to or less than four times the minimum INPS treatment, to the extent of 100%; b) for pension treatments altogether exceeding four times the minimum INPS treatment, and with reference to the total amount of such treatments:
1) to the extent of 85 percent for pension treatments that are in the aggregate equal to or less than five times the minimum INPS treatment;
2) to the extent of 53 percent for pension treatments that are in the aggregate more than five times the minimum INPS treatment and equal to or less than six times the minimum INPS treatment;
3) to the extent of 47 percent for pension treatments that are in the aggregate more than six times the minimum INPS treatment and equal to or less than eight times the minimum INPS treatment;
4) to the extent of 37 percent for pension treatments that are in the aggregate more than eight times the minimum INPS treatment and equal to or less than ten times the minimum INPS treatment;
5) to the extent of 32 percent for pension treatments in total exceeding ten times the minimum INPS treatment.
2.4 The extension of the Ape sociale 2023
In the social security package of the Budget Law 2023, the extension of the Ape sociale is confirmed for 2023 as well. The allowance, which accompanies the worker from age 63 until the ordinary old-age pension, cannot be obtained by all workers, but only by those belonging to specific protected categories: long-term unemployed, caregivers, 74 percent disabled, and those in heavy labor. Regarding the application deadlines, in parallel with what has already been provided for previous years, workers who will accrue the pag. 6
requirements for the Ape sociale by Dec. 31, 2023, they can apply for recognition of the conditions for access to the benefit by the deadlines of next March 31 or July 15, with late application by Nov. 30, 2023.
3. WHAT'S NEW IN THE AREA OF CITIZENSHIP INCOME
Pending a comprehensive reform of poverty support and active inclusion measures, the citizenship income measure is recognized in the new maximum limit of 7 monthly payments.
This limit does not apply in the case of households within which there are persons with disabilities, minors or persons at least sixty years of age.
Individuals subject to the obligations under Article 4 of Decree Law No. 4 of January 28, 2019, converted, with amendments, by Law No. 26 of March 28, 2019, must be placed, for a period of six months, in a training or retraining course under Law No. 53 of March 28, 2003.
In case of non-attendance at the assigned program, the household of the recipient of the citizenship income shall forfeit the right to the benefit.
For citizenship income recipients belonging to the age group of eighteen to twenty-nine, who have not fulfilled compulsory education, the disbursement of citizenship income is also conditional on enrollment in and attendance at first-level adult education courses.
In the case of entering into seasonal or intermittent labor contracts, the higher labor income received does not contribute to the determination of the economic benefit, up to a maximum limit of 3,000.00 euros gross.
4. THE MEASURES TO SUPPORT THE SELF-EMPLOYED (THE SO-CALLED FLAT TAX)
Finally, as of Jan. 1, 2023, the flat tax at 15 percent will be applicable to the self-employed and VAT holders with incomes up to Euro 85,000.00. The flat tax was already in effect for incomes up to Euro 65,000.00. Now, with this extension, the range within which one can join the flat-rate scheme is increased by 20,000 euros, with significant tax savings for the self-employed.
