- The 2024 budget law will introduce a new format tax breaks for working mothers.
- The new measure foresees significant differences based on the number of children, which there must be at least two.
- The allowance amounts to approximately 1,700 euros with a gross salary of 27,500 euros.
The government has been working on drafting the new 2024 budget law, which will introduce, among many new features, a new tax breaks for working mothers.
The intervention provides a financial benefit intended for mothers workers with at least two children, one of which is under 10 years old. But we will go into more detail about the requirements in a specific paragraph.
What does the new measure consist of and what are the objectives? The deduction is added to the tax cut and will be targeted in one piece of female workers in the private and public sector. According to the forecasts, it will be necessary to allocate approximately 450 million euros.
What is the 2024 tax break for working mothers?
From January 2024, the ban on changes to the Budget Law, a new form tax breaks intended for working mothers.
This measure provides different benefits based on the number of children, which must be at least two. Consequently, there will be differences in the withdrawal in the case of workers with two or more children.
In addition, in the three-year period 2024-2026, the Budget Law introduces total exemption, by 100%, of the share of social security contributions they pay for disability, old age and survivors, also called IVS contributions. This measure applies to the employee until the month in which the youngest child turns 18. The specified limit is 3 thousand euros on a monthly basis.
In addition, for incomes up to 35,000 euros, the measure adds to the already planned tax wedge cut. The aim is to reduce the payroll contributions for working mothers with at least two children and, consequently, to increase the net monthly salary.
Contribution relief for working mothers 2024: the requirements
The contribution exemption provided for the three-year period 2024-2025-2026 for the aforementioned social security contributions applies from 1 January 2024 to 31 December 2026. As expected, this relief is provided within the limit of 3 thousand euros until the eighteenth birthday of the youngest of a child.
Consequently, to be able to avail of this benefit, working mothers must have at least one minor child and there must be at least three children. However, only for 2024, the measure is also planned on a pilot basis for women workers with two children, at least one of whom is under ten years old.
This measure is expected regardless of salary level, and applies to both private and public employees. Based on these requirements, the number of beneficiaries in each case will be limited. In the private sector, in fact, we are talking about 571,000 working mothers with two children, one of whom is under 10 years old, and 111,000 mothers with three or more children.
How much is the withdrawal?
But how much is the financial benefit that working mothers who meet the above conditions will enjoy?
As the value rises gradually, if the measure remains unchanged it will rise to a maximum of €1,700 for a average gross salary 27,500 euros. The financial benefit is calculated net of taxes.
The value remains almost similar in the case of higher wages. In addition, a lower contribution from female workers generates more revenue for the fund which, under this mechanism, will offset the difference created by the lower revenue.
Based on numbers reported in the 2024 budget law technical report1this measure will cost the public treasury about 450 million, excluding the Irpef increase and local surcharges.
How to access the Working Mothers’ Bonus
The support has also been touted as a bonus for working mothers: some talk of a salary impact equal to almost an extra month’s salary.
According to the legislation, as for the generalized cutting of the wedge, working mothers they will not need to submit applications to receive the withdrawal in the settlement statement.
In fact, it will be the employer himself who will apply the cut in contributions. This mechanism, therefore, will lead to an increase in the net amount on the payroll for working mothers.
Contribution allowance for working mothers 2024 – Frequently asked questions
The tax exemption planned to start from 2024 is aimed at mothers with at least two children, one of whom is under 10 years old. For the three-year period 2024-2026, an exemption from contributions is provided for mothers with at least three children, of which at least one is a minor.
The new tax relief provided for in the 2024 Budget Law consists of a total exemption from the payment of social security contributions for disability, old age and survivors, within a maximum amount of 3,000 euros distributed on a monthly basis.
Based on the technical report, women workers with at least two children, one of whom is under 10 years old, are approximately 571 thousand, while female workers with at least three children, of which at least one is a minor, are approximately 111 thousand. These numbers represent 10% of employees.
As with the generalized tax reduction, it is not necessary to submit claims in this case either. The employer will apply the reduction in contributions to the settlement statement. This will lead to an increase in the net amount received by the employee.