Pay slip 2023: what’s changing

Paycheck 2023: what is it

Payroll in 2023 has also undergone some changes based on updates to the country’s laws and regulations. In general, the pay slip is a document that summarizes all the information relating to a worker’s salary, including taxes and duties. It contains all the information relating to a worker’s salary (public or private employee), including the worker’s personal data, the amount of the salary, tax and social security deductions, taxes, withholdings and any bonuses.

The pay slip is issued monthly by the employer and is given to the worker, who can use it as a document proving his income and taxes paid. Furthermore, the pay slip is an important document in the event of a request for financing or mortgages, as it demonstrates the worker’s ability to repay.

Paycheck 2023: all the news

But what are the new for 2023? To date, there have been no significant changes to payrolls for 2023, as decisions regarding the minimum wage, tax rates, social security contributions and tax deductions are typically made annually or every two years, based on economic forecasts and the needs of the country.

In any case, among the ‘news’ we find:

• Renewal of the tax wedge cut: the Budget Law proposes once again this year the exemption on the share of social security contributions payable by the worker. Article 1, paragraph 281, Law number 197/2022, exceptionally, for the pay periods from 1 January 2023 to 31 December 2023, provides for the measure of cutting the tax wedge, with the clear aim of reducing payroll deductions for employees, thus benefiting from a net increase. The latter will operate according to two different rates: a 3% discount percentage on contributions paid by workers with an access threshold set at €1,923 per month (€25 thousand per year); a 2% cut on contributions due on salaries up to €35 thousand per year (€2,692 per month).
• Change income brackets and IRPEF rates: From 2022, the IRPEF rates to be applied to incomes from €15,000 to €50,000 have been reduced and the income bracket to which the highest rate of 43% applies has also been expanded for 2023: 23% rate up to €15,000; 25% over €15 thousand and up to €28 thousand; 35% over €28 thousand and up to €50 thousand; finally, 43% over €50 thousand;
• Deductions for income from employment, similar and pensions: the calculation of the 2023 IRPEF must be decreased with some tax deductions, which can be flat-rate because they are linked to the type of income or calculated as a percentage on some types of expenses;
• Supplementary treatment (Renzi Bonus): the IRPEF supplementary treatment of up to €100, which replaced the Renzi Bonus of €80, has been confirmed on the pay slip also in 2023. They receive it: in full, those with an income of up to €15 thousand; it can be reduced and also not payable for incomes up to €28 thousand if the other deductions (dependent family members, employment, first home mortgage and construction work) exceed the gross tax due; it is not above the threshold of €28 thousand.

It should be underlined that changes made to the pay slip are normally communicated to workers well in advance, to allow them to fully understand how these will affect their salary. Typically, payslip information is disclosed via the employment contract, union agreements, employer circulars or via the website of the relevant social security or tax body. Given the significant impact these changes can have on your workers, it is important to carefully monitor the changes and understand how they will affect your income and personal finances.