Housing plan, 5,000 euro benefit for new employees who move more than 100 kilometres away

There are two conditions imposed by the manoeuvre to obtain the benefit: the beneficiary must have an employee income not exceeding 35,000 euro in the year preceding the hiring and must have transferred residence beyond a radius of 100 kilometres calculated between the previous place of residence and the new contractual place of work.

Exclusion from contributing to the worker's income is not relevant for contribution purposes. The amounts paid or reimbursed are taken into account in determining the equivalent economic situation (ISEE) and are taken into account for the purposes of access to social security and welfare benefits.

This extension to new recruits who agree to move beyond 100 kilometres represents a first step in the housing plan proposed by Confindustria president Emanuele Orsini to solve the mismatch between labour supply and demand that is one of the labour market's main problems. Many companies struggle to find the profiles needed to fill the required positions in their territory, but the mobility of workers - from other cities, other regions or other countries - is in many cases held back by high rental prices.

To this end, another article of the Budget Law establishes the Piano casa Italia (Italian Housing Plan) to combat housing discomfort in Italy, also through the valorisation of the existing real estate assets and the containment of land consumption. A national plan for public and social housing, to be adopted, after agreement with the Unified Conference, within 180 days from the entry into force of the Budget Law, is approved by a Prime Ministerial Decree, on the proposal of the Minister of Infrastructure and Transport, to relaunch housing policies as a response to the needs of individuals and families. The plan 'represents a programmatic tool aimed at defining medium and long-term strategies for the overall reorganisation of the housing system, in synergy with the territorial authorities, in order to provide answers to the new housing needs emerging from the social context, integrate housing and social housing programmes, give new impetus to sector initiatives, identify innovative models of governance and project financing, rationalise the use of the available housing supply'.

In 2025, the extension of the wedge cut up to EUR 40,000 will involve 1.3 million more workers than the approximately 14 million already affected by the measure: unveiling some new details of the manoeuvre is Economy Minister Giancarlo Giorgetti. The cut in the contribution wedge that has been in force until now (seven-point cut up to incomes of EUR 25,000, six points up to EUR 35,000) is increasing the pay envelopes of employees by an average of EUR 100 per month. With the new budget law, the mechanism has been changed to avoid, as is now the case, that when the income limit of 35,000 euro is reached, there is an abrupt scale that leads to financial losses.

From January, therefore, the wedge cut will be contributory and fiscal, combining with the reduction of the Irpef rates. Up to 20,000 euro, the cut would remain contributory, then it would act on tax deductions, and a decalage would be introduced between 35,000 and 40,000 euro to 'soften' the effects on payrolls.