{"id":961,"date":"2025-01-14T18:52:00","date_gmt":"2025-01-14T17:52:00","guid":{"rendered":"https:\/\/blog.jobcodehr.com\/?p=961"},"modified":"2025-08-20T15:51:33","modified_gmt":"2025-08-20T13:51:33","slug":"tax-wedge-reduction","status":"publish","type":"post","link":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/","title":{"rendered":"TAX WEDGE REDUCTION"},"content":{"rendered":"\n<p>The Budget Law has introduced a new measure to <strong>reduce the tax wedge<\/strong>, which, unlike the 2024 provision, does not involve lowering the employee\u2019s contribution (previously 6% or 7%). Instead, this reduction will solely have fiscal effects.<\/p>\n\n\n\n<p>Two new measures have been introduced: the first is for employees (thus excluding assimilated income) with total income not exceeding \u20ac20,000. A sum, not included in taxable income, will be provided based on a percentage of employment income. <\/p>\n\n\n\n<p>This variable amount is calculated as a percentage of taxable income as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>7.1% for income up to \u20ac8,500<\/li>\n\n\n\n<li>5.3% for income between \u20ac8,500 and \u20ac15,000<\/li>\n\n\n\n<li>4.8% for income over \u20ac15,000.<\/li>\n<\/ul>\n\n\n\n<p>The second measure introduces an additional tax deduction for employees with annual total income (TI) above \u20ac20,000 but less than \u20ac40,000. This deduction is \u20ac1,000 for incomes up to \u20ac32,000. Above this amount, the deduction decreases progressively to zero for income of \u20ac40,000.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"360\" src=\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/02\/Tabella_2en-1024x360.jpg\" alt=\"\" class=\"wp-image-691\" style=\"width:432px;height:auto\" srcset=\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/02\/Tabella_2en-1024x360.jpg 1024w, https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/02\/Tabella_2en-300x105.jpg 300w, https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/02\/Tabella_2en-768x270.jpg 768w, https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/02\/Tabella_2en.jpg 1104w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>In both cases, the amounts are proportional to the period of employment and are automatically recognised by the withholding agent in each pay period.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Budget Law has introduced a new measure to reduce the tax wedge, which, unlike the 2024 provision, does not involve lowering the employee\u2019s contribution (previously 6% or 7%). Instead, this reduction will solely have fiscal effects. Two new measures have been introduced: the first is for employees (thus excluding assimilated income) with total income [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,22],"tags":[48],"class_list":["post-961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured-news","category-regulatory-news","tag-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>TAX WEDGE REDUCTION - JobCode<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TAX WEDGE REDUCTION - JobCode\" \/>\n<meta property=\"og:description\" content=\"The Budget Law has introduced a new measure to reduce the tax wedge, which, unlike the 2024 provision, does not involve lowering the employee\u2019s contribution (previously 6% or 7%). Instead, this reduction will solely have fiscal effects. Two new measures have been introduced: the first is for employees (thus excluding assimilated income) with total income [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/\" \/>\n<meta property=\"og:site_name\" content=\"JobCode\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-14T17:52:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-20T13:51:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tiziana Savoia\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tiziana Savoia\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/\"},\"author\":{\"name\":\"Tiziana Savoia\",\"@id\":\"https:\/\/blog.jobcodehr.com\/#\/schema\/person\/5e90ab3d6c64392c0fc6fe35b12b5dd2\"},\"headline\":\"TAX WEDGE REDUCTION\",\"datePublished\":\"2025-01-14T17:52:00+00:00\",\"dateModified\":\"2025-08-20T13:51:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/\"},\"wordCount\":161,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg\",\"keywords\":[\"TAX\"],\"articleSection\":[\"Featured News\",\"Regulatory News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/\",\"url\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/\",\"name\":\"TAX WEDGE REDUCTION - JobCode\",\"isPartOf\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg\",\"datePublished\":\"2025-01-14T17:52:00+00:00\",\"dateModified\":\"2025-08-20T13:51:33+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage\",\"url\":\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg\",\"contentUrl\":\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg\",\"width\":1200,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/blog.jobcodehr.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"TAX WEDGE REDUCTION\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/blog.jobcodehr.com\/#website\",\"url\":\"https:\/\/blog.jobcodehr.com\/\",\"name\":\"JobCode\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/blog.jobcodehr.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/blog.jobcodehr.com\/#organization\",\"name\":\"JobCode\",\"url\":\"https:\/\/blog.jobcodehr.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/blog.jobcodehr.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2024\/12\/anim_logo_JC_new.gif\",\"contentUrl\":\"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2024\/12\/anim_logo_JC_new.gif\",\"width\":400,\"height\":400,\"caption\":\"JobCode\"},\"image\":{\"@id\":\"https:\/\/blog.jobcodehr.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/blog.jobcodehr.com\/#\/schema\/person\/5e90ab3d6c64392c0fc6fe35b12b5dd2\",\"name\":\"Tiziana Savoia\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/blog.jobcodehr.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f1fc761f95585388d4c767a5975a25c45bb9b3bc29946ea7918a86f101a1295a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f1fc761f95585388d4c767a5975a25c45bb9b3bc29946ea7918a86f101a1295a?s=96&d=mm&r=g\",\"caption\":\"Tiziana Savoia\"},\"url\":\"https:\/\/blog.jobcodehr.com\/en\/author\/tizianasavoia\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"TAX WEDGE REDUCTION - JobCode","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/","og_locale":"en_US","og_type":"article","og_title":"TAX WEDGE REDUCTION - JobCode","og_description":"The Budget Law has introduced a new measure to reduce the tax wedge, which, unlike the 2024 provision, does not involve lowering the employee\u2019s contribution (previously 6% or 7%). Instead, this reduction will solely have fiscal effects. Two new measures have been introduced: the first is for employees (thus excluding assimilated income) with total income [&hellip;]","og_url":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/","og_site_name":"JobCode","article_published_time":"2025-01-14T17:52:00+00:00","article_modified_time":"2025-08-20T13:51:33+00:00","og_image":[{"width":1200,"height":600,"url":"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg","type":"image\/jpeg"}],"author":"Tiziana Savoia","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Tiziana Savoia","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#article","isPartOf":{"@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/"},"author":{"name":"Tiziana Savoia","@id":"https:\/\/blog.jobcodehr.com\/#\/schema\/person\/5e90ab3d6c64392c0fc6fe35b12b5dd2"},"headline":"TAX WEDGE REDUCTION","datePublished":"2025-01-14T17:52:00+00:00","dateModified":"2025-08-20T13:51:33+00:00","mainEntityOfPage":{"@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/"},"wordCount":161,"commentCount":0,"publisher":{"@id":"https:\/\/blog.jobcodehr.com\/#organization"},"image":{"@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage"},"thumbnailUrl":"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg","keywords":["TAX"],"articleSection":["Featured News","Regulatory News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/","url":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/","name":"TAX WEDGE REDUCTION - JobCode","isPartOf":{"@id":"https:\/\/blog.jobcodehr.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage"},"image":{"@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage"},"thumbnailUrl":"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg","datePublished":"2025-01-14T17:52:00+00:00","dateModified":"2025-08-20T13:51:33+00:00","breadcrumb":{"@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#primaryimage","url":"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg","contentUrl":"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2025\/01\/Fiscale-leggedibilancio-2025.jpg","width":1200,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/blog.jobcodehr.com\/en\/tax-wedge-reduction\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/blog.jobcodehr.com\/"},{"@type":"ListItem","position":2,"name":"TAX WEDGE REDUCTION"}]},{"@type":"WebSite","@id":"https:\/\/blog.jobcodehr.com\/#website","url":"https:\/\/blog.jobcodehr.com\/","name":"JobCode","description":"","publisher":{"@id":"https:\/\/blog.jobcodehr.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/blog.jobcodehr.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/blog.jobcodehr.com\/#organization","name":"JobCode","url":"https:\/\/blog.jobcodehr.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/blog.jobcodehr.com\/#\/schema\/logo\/image\/","url":"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2024\/12\/anim_logo_JC_new.gif","contentUrl":"https:\/\/blog.jobcodehr.com\/wp-content\/uploads\/2024\/12\/anim_logo_JC_new.gif","width":400,"height":400,"caption":"JobCode"},"image":{"@id":"https:\/\/blog.jobcodehr.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/blog.jobcodehr.com\/#\/schema\/person\/5e90ab3d6c64392c0fc6fe35b12b5dd2","name":"Tiziana Savoia","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/blog.jobcodehr.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f1fc761f95585388d4c767a5975a25c45bb9b3bc29946ea7918a86f101a1295a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f1fc761f95585388d4c767a5975a25c45bb9b3bc29946ea7918a86f101a1295a?s=96&d=mm&r=g","caption":"Tiziana Savoia"},"url":"https:\/\/blog.jobcodehr.com\/en\/author\/tizianasavoia\/"}]}},"_links":{"self":[{"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/posts\/961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/comments?post=961"}],"version-history":[{"count":2,"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/posts\/961\/revisions"}],"predecessor-version":[{"id":964,"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/posts\/961\/revisions\/964"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/media\/625"}],"wp:attachment":[{"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/media?parent=961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/categories?post=961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.jobcodehr.com\/en\/wp-json\/wp\/v2\/tags?post=961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}