“Budget Law Changes” 

Hello everyone and welcome to a new HR Capital Tip! 

The 2023 Budget Law has provided some important changes which are of interest to companies and workers. 

The main measures, in particular, include cutting the tax wedge, recruitment incentives, smart working and pension access. 

In more detail, the exemption of employees’ social security contributions for employment relationships has been increased. The relief will be equal to 2% for annual incomes up to      €35,000 and 3% for those up to €25,000. In addition, the measures in favor of the recruitment of young people under 36 years of age and women are extended, with the exemption raised to the threshold of €8,000.00 per year for each recruit. Furthermore, the provision for vulnerable workers to work in smart working without the stipulated individual employer agreement has been extended until the 31^st of March 2023. 

Finally, there are also changes to the social security plan: on an experimental basis for 2023, it will in fact, be possible to obtain the right to early retirement upon reaching a registry age of at least 62 years and a minimum contribution seniority of 41 years, through the so-called “quota 103”. 

The measure known as the social EPA has also been extended to the 31^st of December 2023 and the pension advance known as the “Women’s Option” has been extended, with new requirements. 

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