Politics · Italy · 19 hrs ago
Italy considers lower tax on 13th-month pay for low-income workers
Italy is considering a tax cut on 13th-month pay for employees with low incomes.
This extra payment, usually equal to a month’s salary, is currently taxed under ordinary income tax rules and does not get the usual employee tax deductions.
The proposal may be included in the government’s budget plan, but it has not yet been approved.
Officials are still weighing a reduced tax rate of 10% or 15%, along with an income limit.
Possible income limits range from €15,000 to €30,000, which would affect different numbers of workers.
Those who qualify could receive a few hundred euros more net without an increase in their gross pay.
The final benefit will depend on the rules approved in the budget plan.
Italy is considering lower taxes on 13th-month pay for low-income employees as part of its budget bill.
The proposal could apply a tax rate of 10% or 15%, but the rate and income limit are still under review.
If approved, the measure could leave eligible workers with a few hundred euros more net pay without increasing gross salary.
The proposal’s reach would depend on the income threshold eventually approved.
- Who
- Low-income employees in Italy, if they meet the eventual eligibility rules.
- What
- The government is considering a lower tax rate on 13th-month pay, possibly 10% or 15%.
- When
- Reported on October 27, 2026; the proposal was still being considered.
- Where
- Italy.
- Why
- To reduce the tax paid on 13th-month pay for low-income employees.
This story does not have two clearly opposing sides.
Majority sources said the measure was among those that could be included in the budget bill.
Italian outlets reported that the tax rate and income threshold were still under consideration.
- Potential tax rates
- 10% or 15%
- Income threshold examples
- €15,000 or €30,000
- Existing tax treatment
- 13th-month pay is taxed under ordinary income-tax rules and does not receive standard employee tax deductions
- Possible net gain
- A few hundred euros for eligible workers
- Potential exclusion
- The article says income bands above €20,000 would very likely not be included.
3 sources
What people are saying
the measure would be among those included in the budget bill