Work, the debut of the tax exemption for working mothers in January: what the package provides

US June services PMI revised upwards to 544 points

(Finance) – The new one will debut in January decontribution scheduled for workers with at least two children. Self Budget Law will not undergo changes for working mothers with three or more children in an employment relationship employee to indefinite period (excluding domestic work), for the pay periods from 1 January 2024 to 31 December 2026, a exemption of 100% of the share of social security contributions for disability, old age and survivors to be paid by the worker up to the month of the youngest child’s eighteenth birthday, within the maximum annual limit of 3 thousand euros adjusted on a monthly basis.

For working mothers with two sons, on an experimental basis, for the pay periods from 1 January 2024 to 31 December 2024, the same relief is provided but up to the month of the youngest child’s tenth birthday. Therefore, the measure is valid for the three-year period 2024-26 in favor of mothers with three or more children, of which at least one is a minor and, for 2024 only, also for mothers with two children, at least one of whom is under the age of ten. . The measure is applicable to all workers with permanent contracts, regardless of salary level. For incomes up to 35 thousand the intervention must be read together with wedge cut.

In the relation technique the 2024 Budget Law indicates that working mothers in the private sector with at least three children – one of whom is under 18 – are approximately 111 thousand. Female employees with two children, one of whom is under 10 years old, are approximately 571 thousand. As regards the female employees of the sector public the unofficial estimate is that they are, in terms of number, equal to around a quarter of private employees (it should be around a fifth, but the public sector typically records higher female employment rates).

The benefit of this decontribution – net of taxes – would progressively grow until reaching approximately 1,700 euros, reached close to the gross salary of 27,500 euros, a value that remains almost constant for higher salaries. The figures were indicated byParliamentary Budget Office. The lower contribution paid by the worker generates greater revenue for the treasury which partially offsets the costs of the lower contribution revenue. The simulation carried out with the Upb model on a representative sample of families estimates a cost to the treasury of the specific decontribution for working mothers in 2024, net of the increased Irpef and local surcharges, of approximately 450 million.

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