Italy prepares for 2027 budget amid salary and tax reform discussions

Italy is facing fiscal considerations regarding judicial salaries and potential tax reforms ahead of the 2027 budget. The National Association of Magistrates (ANM) is seeking the payment of arrears, claiming that certain salary components required by law were omitted for years. This dispute follows a Council of State ruling that criticized previous decrees for excluding specific emoluments that contribute to the economic treatment of public employees.

Simultaneously, simulations for the 2027 budget suggest potential changes to Irpef tax withholdings for salaries and pensions. The Ministry of Economy and Finance is considering expanding the 33% tax bracket to include income up to 60,000 euros, a move that would reduce the tax rate from 43% to 33% for that specific bracket. While this could result in modest annual savings for middle-income earners, the impact varies depending on the individual's taxable income.