In recent days, with the payment of February salaries, working mothers benefiting from the exemption from contributions – the so-called “mother bonus” – expected to receive a significant net increase in their salary. Instead, the increases have been modest, with many calling the bonus a mockery. But is it really like that? Not exactly. Firstly because the inadequacy between the contribution exemption and the net amount collected was announced. The parliamentary budget office, already in a preliminary hearing for the examination of the bill, indicated in its report of November 14, 2023 that the reduction in contributions paid by workers would generate greater revenue for the treasury and that this revenue significant would partly offset the costs. lower contribution income.
“Mothers’ bonus”: what it provides and who can benefit from it
The 2024 finance law provided for an exemption for the share of social security contributions for disability, old age and survivors (so-called IVS contributions, equal to 9.19% of salary) paid by working mothers of two children (for 2024 uniquely). three or more children (until 2026) and the INPS has published the instructions for its application with circular no. 27/2024 of January 31, 2024. The benefit intended to support the birth rate and, more particularly, large families, consists of an exemption from contributions for mothers who have permanent employment in the public or private sector, even part-time. The measure affects around 800,000 mothers. In the private sector, working mothers with two children, including one under 10 years old, number around 571 thousand, while those with three or more children, including a minor, number 111 thousand .
In this article we only analyze the application of the advantage for the period from January 1 to December 31, 2024:
- it is recognized for a working mother (with two or three children) if she maintains a permanent and continuous employment relationship;
- the maximum threshold for exemption from the contribution due by the worker, referring to the monthly pay period, is 250 euros (€3,000/12) and, for employment relationships established or terminated during the month, this threshold must be reproportioned taking into account referencing the measure of 8.06 euros (250/31 €) for each day of use of the contribution exemption;
- it is recognized for a working mother (with two or three children) if she maintains a permanent and continuous employment relationship;
- the maximum threshold for exemption from the contribution due by the worker, referring to the monthly pay period, is 250 euros (€3,000/12) and, for employment relationships established or terminated during the month, this threshold must be reproportioned taking into account referencing the measure of 8.06 euros (250/31 €) for each day of use of the contribution exemption;
- if the permanent employment relationship is established after the acquisition of the status of mother of two or three children, the exemption, in the presence of the legitimation conditions, will apply from the month in which the permanent employment relationship begins ;
- the exemption is recognized from the month of birth of the second or third child (provided that a permanent employment relationship is already in progress);
- the exemption analyzed here ends on December 31, 2024 or in the month of the youngest child's tenth birthday (to include 9 years and 364 days), if it occurs before the scheduled deadline of December 31, 2024.
Mothers who do not have a permanent employment contract cannot access the bonus, and all self-employed and precarious workers are also excluded, as well as domestic workers. To obtain the bonus, you must inform your employer that you meet the conditions to obtain it, by indicating through a self-declaration the number of dependent children and the associated tax codes. Subsequently, the employer can include the request in the contribution reports sent monthly to the INPS.
How is net salary calculated?
The net salary of an Italian employee is composed of the gross salary less IVS employee contributions, less taxes (Irpef and regional and municipal surcharges) and less any employment deductions. Taxes are generally paid on the difference between gross salary and IVS contributions.
The mothers' bonus represents a reduction on IVS contributions and can cover up to 250 euros per month and three thousand euros per year at most. However, precisely because of the exemption from contributions on the pay slip, the taxable income of the worker increases, the gross Irpef tax payable increases and the deduction for salaried work could also be reduced. Let's take an example: a worker with a monthly salary of 1,500 euros per month generally pays 9.19% to the INPS for IVS contributions; or 137.85 euros per month. With the “mom bonus”, you will pay nothing since you benefit from a total contribution exemption of 137.85 euros. However, the sum of €137.85 does not constitute the net increase in the pay slip because, as mentioned, it increases the tax base and therefore the taxes paid by the worker. In the case of our employee, the net increase in the salary slip – excluding regional and municipal increases and possible deductions from employment – will be equal to 106.34.
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