Good news for workers: wages will rise in 2023

Great news is coming for Italian workers, who could get more income with the government’s new budget package

Giorgia Meloni’s new government is working to make life less complicated and cheaper for millions of Italians. Above all, he is looking for solutions to deal with inflation and the high cost of living which have become depopulated in 2022.

Wages will increase in 2023 (web source)

However, there is good news coming from the country’s political and financial circles. It seems that an economic maneuver is being considered which, in 2023, will allow many Italian workers to obtain higher average salaries.

Indeed, a further reduction in the tax wedge dedicated to the lowest incomes is under study, in order to allow a rise in wages in the short term. The finance law provides for a double intervention on the corner: on the one hand, the confirmation of the reduction of two points introduced by the Draghi government, and on the other hand, the reduction of an additional point for incomes below one certain threshold.

Salary hike for Italians: here’s who will be able to benefit from it next year

An operation of around 5 billion euros, the one set in motion by the Meloni government and the Ministry of Finance. Compared to what was done by the management of Mario Draghi, which reduced the tax wedge for all workers by two points, the new measure also takes into consideration part of the companies.

As revealed by Minister Giorgetti, the intention of the government in 2023 will be to protect and facilitate workers with the lowest incomes. Giancarlo Giorgetti – Minister of Development (Instagram)

Here are the different scenarios proposed to reduce the tax wedge. The first is the one who only sees the confirmation of what is already in force, therefore a reduction in contributions of 2% for workers with incomes below 35 thousand euros: in this case, it is clear that nothing would change, and salary increases would remain those already enforced, therefore imperceptible.

The second option would be to increase the reduction of the wedge to 3%, but by allocating a third of the quota to companies: the benefit would therefore come from companies, perhaps thus more encouraged to hire. For workers, very little would change in terms of wage increases.

The last scenario is the one that sees the increase in reducing the wedge to 3 percentage points, and allocating everything to the workers: in this case, the increase in wages would have a clear effect for everyone.