There has been a “concession” on taxation of productivity bonuses given to private sector workers. In 2025, half of the original will be raised to 5 percent, excluding the highest income groups. This principle is included in the budget law which is being reviewed by the chamber.
Productivity Bonuses: What They Are and Whom the Benefit Applies To
Performance bonuses, paid based on specific goals, are designed to motivate workers to contribute to the company’s growth. Quantities vary depending on the increase in productivity, but also depending on the profitability, quality, efficiency and innovation achieved by the company.
As they are treated as additional income to salary, bonuses are subject to preferential taxation, with the rate superseding the Irpef (and associated surcharges) that apply at the maximum. 3,000 euros grossAs defined by Ipsoa.
A provision in budget legislation under consideration in the chamber extends the “discount” introduced in 2023, which would have provided for the budget to be cut in half. is Actual tax (10% to 5%) on performance bonus reserved for private sector workers whose annual income is less than 80 thousand euros.
According to the report Digit@Uil 2022/2023the reduction in tax rate on performance bonus has given a strong boost to companies. In 2023, right 2.7 million workers Compared to 2020, more than 400 thousand units benefited from these incentives. 1.692 euros (+4.5% compared to 2022).
In the future, the performance bonus may change significantly, combining more and more relevant criteria. Environmental sustainability. Recent approval of the Decree transposing the European Directive 2022/2464 (Corporate Sustainability Reporting Standard Directive) represents an important step, which pressures companies to review the parameters for awarding bonuses, and align them with green objectives.
Who recognizes productivity bonuses?
A regional analysis shows a concentration of performance bonuses. Northern Italywhere 74% of the companies supplying them operate. They follow. Central Italy with 17% and Sod with 9%. There Lombardy The first area is verified with 4,970 collective agreements Those who provide this kind of incentive, then Emilia-Romagna (3.084) e Veneto (1,991). The opposite situation for Molise, Aosta Valley e Basilicatawith fewer than 100 active collective agreements.
Productivity bonuses specifically reward workers. Service sector. This comes from the latest Labor Ministry report released on October 15, which shows how 61% of reserves are concentrated in this sector. ‘industry follows with 38%, whileAgriculture represents the residual share (1%).
According to the ministry, there is an increase in productivity bonuses and potentially affected workers in 2024. I am almost. 5 million Potential beneficiaries of these benefits, while those in collective agreements that provide them, rose 17 percent to 17,995 over the previous year.
Despite the limitations imposed, tax relief on performance bonuses has encouraged an ever-increasing number of companies to award bonuses to their employees. This is contributing to the recovery of the procedure Purchasing power About a quarter of the total 18 million for private sector workers.
