NoIn the budget law for 2024, which will now be examined by Parliament, there is a substantial package of interventions for the family. Apart from the lack of confirmation of the cut of theVAT on early childhood products (“It was absorbed by the increase in prices” the prime minister justified), the birth rate in the 2024 budget is encouraged. «With further measures worth one billion euros», explained Giorgia Meloni. Objective: strengthen paid leave, nursery schools and tax relief for mothers with two children or more.
Contribution relief for mothers and free nursery schools: measures for the family in the 2024 Budget
“A woman who gives birth to at least two children has already offered a great contribution to the country,” said Prime Minister Giorgia Meloni. He thus wanted to explain the choice to relieve mothers with two children or more from paying the worker’s contributions. Basically, if a working mother has two children, does not pay contributions until the youngest is 10 years old. If a mother has three children or more, she does not pay contributions until the youngest is 18 years old.
On nursery schools, the government announced the increase to 150-180 million Fund for nursery schools with «the objective of free nursery for all second children». The possibility of free car tax for large families is being studied.
Single allowance and parental leave, the news
Last year’s provisions on single allowance confirmed (which increases for the third child, at least up to the age of six) and parental leave. While an additional month of parental leave paid at 60% is introduced and can be used by the father or mother until the child is 6 years old. The leave system is therefore now structured as follows: 5 months of maternity leave paid at 100%, an additional month that can be used by the mother or father within the child’s 6th birthday paid at 80%, a further month up to the child’s 6th birthday paid at 60%, the further 8 months at 30%.
Deductions foreseen for those who hire on a permanent basis (at 120%), which it rises to 130% for those who stabilize mothersunder 30, disabled people and former RDC recipients.
The new Irpef rates and fringe benefits for workers with children
In the 2024 budget, also the start of the new Irpef (with the remodulation of the brackets) and which confirms the cut in the tax wedge for medium-low incomes for one year. The new rates for income brackets are determined as follows: up to 28,000 euros, 23%; over 28,000 euros and up to 50,000 euros, 35%; over 50,000 euros, 43%. Furthermore, the threshold is increased to 8,500 euros no tax area foreseen for employee income which is equal to the one already in force for pensioners.
Confirmed tax relief on fringe benefits (goods and services provided to workers not in the form of money but of compensation “in kind”. This includes the expenses to be incurred in going from home to work and vice versa, the cost of fuel but also of domestic utilities such as electricity, water and gas ). The maximum limit is set at 2 thousand euros for workers with children, a thousand euros for the others.
Pensions and the Rai license fee
On the pension front, the prime minister explained that there will be one 100% revaluation for those up to four times the minimum, of 90% between 4 and 5 times the minimum and then there is a decalage. The revaluation is confirmed for the minimum pensions of those over 75 years old.
The maneuver also involves a cut in the Rai canonwhich will go from 90 to 70 euros per year.
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