Overview

• Lega proposes a draft law featuring a 5% flat tax for under-30 hires earning up to €40,000, three-year employer contribution exemptions, and partial inflation-adjusted wage increases.
• Fratelli d’Italia opposes Lega’s automatic inflation-linked wage adjustments, advocating instead for completing the delayed 2023 wage delegation law still pending in the Senate.
• Forza Italia introduces a counterproposal to exempt contractual pay increases from taxes and contributions for three years to boost worker purchasing power and incentivize contract renewals.
• The coalition remains at odds over how to address wage stagnation and youth emigration, with no unified approach yet finalized ahead of the late-May parliamentary deadline.
• The proposed reforms also include a fiscal peace plan with extended repayment schedules and a market-friendly overhaul of financial regulations to attract investment.