Italy: major boost to employee purchasing power

On the evening of 23 January, Italy’s council of ministers approved a decree-law that will reduce income tax for employees whose annual gross revenue is below €40,000. Italy’s 2020 budget law set aside close to €3 billion this year for the measure, which will affect 16 million workers and will take effect in July.
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The so-called ‘urgent measures to reduce the tax burden on the work of employees’ apply both to private and public sector workers and have been formulated according to revenue.

A measure that begins with the €80 ‘Renzi bonus’. For employees whose gross annual income is between €8,200 and €26,600, and who already receive the so-called ‘Renzi bonus’ of €80 per month, instituted in 2014, this bonus will increase to €100 per month as of July. Employees with a gross annual income of between €26,600 a

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