The decree renewing the "experimental" measure introduced by the previous Berlusconi administration to promote local collective agreements with a 10 percent tax cut to "productivity pay" in the private sector, will apply in 2012 for sums below EUR 2,500 (6,000 in 2011) and only concern employees earning less than EUR 30,000 a year (40,000 in 2011). Unions, who were not consulted, want the decree amended. (Ref. 120362)
The decree issued by the chairman of the Council of Ministers and published in the Official Journal on May 30 lowers the income limit for lower taxation (10 percent) of variable pay in the private sector. To improve productivity at work, the Berlusconi administration launched this system on a trial basis in 2008 (see our dispatch No. 080424), and it has been renewed since. In 2011, in order to boost local bargaining, it was decided that this measure would only apply if company or...
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