Upon conversion into law (Law No. 143/2024) of Decree-Law No. 113/2024, Art 2-bis is introduced, pursuant to which, for 2024, an allowance of EUR 100.00 gross is granted to all workers when the following conditions are jointly met:
- The worker’s income does not exceed EUR 28,000.00. The income earned by workers subject to the special scheme for ‘inpatriates’, or by teachers and researchers subject to the special scheme set by art. 44(1) of Decree-Law no. 78/2010), are also considered for these purposes.
In any case, the total income is taken net of the income of the property unit used as main residence and that of its appurtenances (Art. 10(3-bis), Presidential Decree no. 917/1986).
- The worker has at least one dependent child.
- The gross tax determined on employment income – excluding pensions of any kind and equivalent allowances – is higher than the amount of the tax deduction upon income from employment set by Art. 13(1) of Presidential Decree No. 917/1986.
The allowance is not due to the employee whose spouse – not legally and actually separated – or live-in partner is already a recipient of the same (art. 2-bis(2-bis), Law Decree no. 113/2024).
Where due, this allowance is adjusted to the period of employment and does not contribute to the formation of the employee’s total income.
The withholding agent is required to pay the allowance together with the 13th month’s salary only after a formal request by the worker concerned, certifying that he or she meets the subjective requirements set out in points 1), 2) and 3) above. In the request, workers are required to specify the tax code of their spouses and children.
Upon year-end balance, withholding agents are required to verify the entitlement to the allowance; should it prove to be undue, the relevant amount will be recovered.
The withholding agent will pay the allowance to the worker, and then offset the accrued credit via F24 form.
Workers may also benefit from the allowance, if it has not been previously recognised by the withholding agent, via their income tax return, as well as in case the employee’s income has not been subject to withholding tax. In such a case, the allowance is offset against personal income tax.
When the allowance has been paid by the withholding agent, but is not due to the recipient employee, the amount already granted will be returned in the declaration.
We remain available for any further clarification.