Flat tax of 15% on overtime. In the 2025 Budget, the possibility of a tax exemption on compensation for overtime hours for all employees is gaining ground. Today, six out of ten workers work overtime. But taxation is often a disincentive. Who would benefit from a reduction in tax revenue?
Acting on the tax burden is a way to allow companies to have more available manpower and therefore increase productivity. And it is a way for workers (the middle class first and foremost according to the government) to have a higher paycheck. In Italy 15 million people (60% of employees) today work extra hours (Inapp data). By law the maximum possible is 250 hours a year. Remuneration varies depending on the sector. In commerce it reaches a +15/30% compared to the basic salary, in tourism even 60%, for metalworkers it goes from 25 to 30%. But today this money is considered part of the income and therefore taxed on an Irpef basis. So? There are many who say no to the request for overtime, so as not to risk ending up in the higher bracket and paying more taxes. A flat tax would lead many no to become yes according to the government which therefore wants tax relief on overtime for all employees. The proposal has already been applied to nurses and doctors in the waiting list decree. A 15% fat tax to slightly increase salaries and increase “productivity” (reduce the months of waiting for visits and tests). In the first semester, the same possibility was guaranteed to tourism workers with an income of up to 40 thousand euros, but only for night shifts and on holidays.
Lower taxes on overtime certainly mean an economic gain for everyone. But who would gain the most from the measure? The biggest discount would go to the highest incomes. Assuming that the flat tax is set at 15%, employees with an income of up to 28 thousand euros who fall within the 23% of Irpef would save 8% on overtime. But exceeding 50 thousand euros per year and therefore with a rate of 43% the saving would instead be 28%.
The government is convinced that the principle works. Increasing paychecks, even in this way, helps to increase purchasing power and therefore consumption and the economy. But it is always a question of available resources. It will not be long before we understand what can and cannot be included in the 2025 Budget. In fact, before the Budget Law there is another appointment: the Structural Budget Plan. And this must be sent to Brussels very soon, on September 20.
