Salaries 2025: the new pay slip, deductions, personal income tax

Cwith the approval of the Budget Law, Italy sees major changes in the tax system which will influence, some more, some less, the 2025 salaries of employees. The main changes concern Irpef and the tax wedgewith changes that aim to make the system fairer and support family incomes.

Salaries 2025: how the paycheck changes

After all, as is known, wages in Italy are among the lowest in Europe: the average salary stands, in fact, at just over 35,000 euros per year, a long way from the OECD average which is over 46,000 euros. But not only that, because Italy is also the only EU country where wages have fallen compared to 1990.

This condition is certainly not without explanations, but instead reflects a complex situation that involves economic, social and political factors, which certainly have something to do with it, significantly impacting workers’ paychecks, the excessively high cost of labor And a tax wedge among the highest in Europe.

The new Irpef rates

Returning to the changes that give rise to hope, among the main ones there is the structural introduction of the three-rate Irpefa system already tested in 2024. This new tax structure aims to simplify taxation and ensure greater fairness.

However, according to the simulations of National Council of Accountants, the net impact on 2025 salaries will be limitedespecially for those who earn less than 35,000 euros gross per year. For those with higher incomes, however, the effects will be more visible, with a greater increase for incomes between 35,000 and 40,000 euros.

Payroll news in the new year. (Getty Images)

The impact of the tax wedge

Even the unsustainable tax wedgei.e. the difference between the cost of labor for the employer and the net salary received by the worker, will undergo significant changes. For incomes up to 20,000 euros, an additional non-taxable sum has been introduced which replaces the previous cut in social security contributions. This amount varies based on income: 7.1% for incomes up to 8,500 euros, 5.3% for incomes between 8,501 and 15,000 euros, and 4.8% for incomes above 15,001 euros. These amounts, ranging from 481 to 871 euros per year, represent a benefit for low-income workers.

Deductions for average incomes

For employees with incomes between 20,000 and 32,000 euros, a fixed deduction of 1,000 euros was introducedregardless of the amount of income. For those who earn between 32,001 and 40,000 euros, the deduction decreases until it reaches zero at 40,000 euros. According to the estimates of the Accountants, the greatest advantages will be seen for incomes around 35,000 euroswith an increase of 1,000 euros compared to 2024. For incomes of 40,000 euros, the benefit will be around 459.50 euros per year, and will then decrease further until it reaches zero at 44,000 euros.

Salaries 2025, the great hopes

Ultimately, the changes introduced by the 2025 Budget Law they will not revolutionize Italians’ paychecksbut definitely they introduce adjustments that result in small benefitsespecially for those with medium-low incomes. It will, therefore, be interesting to observe the concrete impact of these measures during 2025, to evaluate whether they will be sufficient to give a real boost to the purchasing power of Italian families in a period of great economic uncertainty.

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