COUNCIL OF EUROPE

NB_CE

 

BIENNIAL REPORT

ON THE

EUROPEAN CODE OF SOCIAL SECURITY

(Article 76 – Parts not provided for

in the Code ratification

or subsequently notified)

________

STRASBOURG

R E P O R T

submitted by Italy, in compliance with Article 76 of the European Code on Social Security, for the period from 1st July 2018 to 30th June 2020, on National legislation and its enforcement concerning the provisions of the parts III, IV, IX e X of the European Code of Social Security, which have not been provided for in the Code ratification or subsequently notified.

PART III

SICKNESS BENEFITS

Law References

-   R.D.L. no. 1825, of 13th November 1924, converted into Law no. 562 of 18th  March 1926 "Provisions relating to private employment contract";

-   R.D.L. no. 1918 of 23rd September 1937, converted into Law no. 831 of 24th April 1938 concerning the "Insurance against sickness for seafarers", Articles 6 and 7;

-   Legislative Decree no. 708 of 16th July 1947 "Provisions concerning the National Insurance and Assistance Institution for show business workers";

-   Law no. 1486 of 16th October 1962 “Provisions about the assistance to seafarers temporarily unable to the embarkation” (so-called Legge Focaccia)

-   Article 4, D.P.R. no. 602 of 30th April 1970 " Social security and welfare reorganization of particular categories of workers, such as shareholders in companies and members of cooperatives, also de facto, who work for their companies or cooperatives";

-   D. L. no. 663 of 30th December 1979, converted into Law no. 33 of 29th February 1980 "Provisions for National Health Service financing, Social Security and lower labour costs"

-   Article 5, D.L. no. 317 of 11th July 1983 "Urgent measures on social security"

-   D. L. no. 463 of 12th September 1983, converted into Law no. 638 of 11th November 1983 "Miscellaneous - urgent measures on social security and health and to curb public expenditure"

-   Law no. 335 of 8th August 1995 "Reform of the mandatory and supplementary pension system";

-   Article 1, paragraph 788, Law no. 296 of 27th December 2006 "Provisions for the annual and multi-annual State budget (2007 Budget Law)";

-   Article 24, paragraph 26, D.L. no. 201 of 6th December 2011, converted with amendments into Law by Article 1, paragraph 1, of the Law no. 214 of 22nd December 2011 "Urgent provisions for growth, equity and consolidation of public accounts";

-   Article 10, paragraph 3, D.L. no. 76 of 28th June 2013, converted with amendments into Law no. 99 of 9th August 2013 "First urgent measures for promoting employment, in particular youth employment, social cohesion as well as on Value Added Tax (VAT) and other urgent financial measures";

-   Article 8, paragraph 10 of Law no. 81of 22nd May 2017 "Measures for the protection of non-entrepreneurial self-employment and measures for promoting flexible articulation of working time and places for employed workers";

-   Article 18, paragraph 1 of Legislative Decree no. 75 of 25th May 2017, containing "Modifications and integrations to Legislative Decree no. 165 of 30th March 2001, pursuant to articles 16, paragraphs 1, letter a), and 2, letters b), c), d) and e) and 17, paragraph 1, letters a), c), e), f), g), h), i), m), n), o), q), r), s) and z), of Law no. 124 of 7th August 2015, concerning the reorganization of public administrations";

-   D. L. n. 101 of 3 September 2019 "Urgent provisions for the protection of work and for the resolution of corporate crises", converted with amendments into Law no. 128 of 2 November 2019 ";

-   Art. 26, Legislative Decree n. 18/2020, converted with amendments and additions into Law no. 27 of 2020, "Urgent measures for the protection of the period of active surveillance of workers in the private sector".

Sickness benefit

Sickness benefit is a social security benefit, provided for almost the whole of private sector workers, which partially offsets the loss of the worker's wage, who, because of a common disease[1], has a temporarily reduced work capacity.

Sickness benefit is subject to the employment relationship. For employees, the benefit entitlement arises from the effective date upon which the employment, subject to mandatory insurance against sickness, has started. The employment shall be deemed as started only if the worker has effectively worked, although only for few hours.

However, there are some exceptions related to the benefit entitlement in connection with the effective working activity:

-   agricultural sector fixed-term workers, who shall have worked for at least 51 days during the same year or in the year before the occurrence of the sickness;

-   show business workers, who shall have at least 100 days of accrued contribution, starting from the 1st January of the year before the occurrence of the sickness.

Beneficiaries

Sickness benefit is paid to:

a)   employees, both with open-ended and fixed-term contracts, who work in the following categories and sectors:

-   blue-collar workers of industrial sector

-   blue collar and white-collar workers of third sector and services, including equivalent categories such as homeworkers and parrish working helpers

-   apprentices

-   workers of agricultural sector

-   shareholders company employed in companies or in cooperative institutions

-   unemployed or suspended workers

-   show business workers (with the exception of self-employed workers performing musical activities)

-   seafarers (as from the 1st January 2014, under Article 10, paragraph 3 of Decree Law No. 76 of 28th June 2013, converted by Law No. 99 of 9th August 2013, which, as from the above said term, transfers to INPS the management and payment of sickness benefits for seafarers).

b)   workers registered with the Special Fund for Self-employed, provided that:

-   they are not contemporarily registered with another compulsory pension scheme

-   they are not retired.

Sickness benefit starting date and payment modalities

Generally, the sickness benefit is paid by INPS starting from the 4th day after the sickness occurrence; the first three days of sickness, so-called “lack period” (carenza), are, for employees, totally paid by the employer. Anyway, the employer pays the whole benefit amount in advance on behalf of INPS, then retaining his part from the contribution he has to pay to the Institute.

INPS pays the sickness benefit directly to the workers only if they fall within the following categories:

-   fixed-term contract agricultural workers

-   seasonal workers

-   unemployed or suspended workers who don’t benefit from ordinary wage support (CIGO)

-   employees of companies under insolvency procedures

-   employees of companies no longer in activity, who got sick before the company activity had been ceased;

-   seafares;

-   workers registered with the Special Fund for Self-employed (Gestione Separata)

Maximum duration of sickness benefit

a)   Employees

The maximum duration of sickness benefit is 180 days in the calendar year; after the 180th day, employers, according to the employment contract, can continue to pay wages, fully financed by themselves.

For the specific category of seafarers, a maximum duration of 1 year is provided for some typology of sickness benefits.

To calculate the maximum duration of sickness benefit, the following periods shall be excluded:

-   maternity leave both mandatory and voluntary

-   sickness caused by accident at work

-   occupational disease

-   tuberculosis

-   sickness caused by third parties for which INPS has undertaken a process of subrogation with positive outcome, even in part.

In case of ceasing or suspension of work, open-ended contract employees are entitled to social protection provided that the sickness occurred within 2 months since the ceasing or the suspension.

For fixed-term contract employees, the sickness benefit maximum duration is equal to the number of the days effectively worked during the 12 months immediately preceding the sickness occurrence; anyway, the benefit has a minimum duration of 30 days up to a maximum of 180 days. (Article 5 Decree of 12 September 1983, n.463); except seafarers, whose protection falls under R.d.l. no. 1918 of 23rd September 1937, converted, with modifications, in the Law no. 831 of 24th April 1938 (article 5, paragraph 7, Italian Legislative Decree No. 463/83 cited) and show business workers, whose protection continues also after the employment relationship termination, if they satisfy the required qualifying conditions.

For fixed-term contract agricultural workers the sickness benefit maximum duration is equal to the number of the days effectively worked during the 51 days of the preceding calendar year or the current year but before the sickness occurrence.

a.1) The specific sickness-related benefits for seafarers

For seafarers there is a specific legislation which differs from the one in force for other employees in terms of amount and duration of sickness benefits. Seafarers can benefit from:

-   absolute temporary disability benefit for sickness occurring during embarkation (so called malattia fondamentale), which prevents navigation from the occurrence onward. It is paid as from the day after the disembarkation date for all the sickness days (including holidays) for a maximum period of 1 year;

-   absolute temporary disability benefit for sickness occurring within 28 days from the disembarkation (so called malattia complementare); it is paid for a maximum period of 12 months as from the disembarkation date. Only the crew of specific typologies of ships is entitled to this benefit (ships provided with crew’s list; high sea tugs; vessels of gross tonnage exceeding 200 tonnes fishing out of the Mediterranean Sea); the benefit is paid as from the 4th day after the date of the sickness communication;

-   temporary disability benefit for sickness, in case of sickness occurring after the 28th day from the disembarkation but within the 180th day; it is paid to seafarers in continuity of employment and for a maximum period of 180 days;

-   allowance for temporary unsuitability for boarding following illness, specific benefit for seafarers, paid by INPS following an illness event, in the presence of temporary unsuitability for navigation, declared by the competent first-degree medical Commission operating at the Port authorities; it is recognized up to a maximum period of one year

b) Workers registered with the Special fund for self-employed

These workers are entitled to:

-   hospitalization benefit

-   sickness benefit

Important regulatory changes affected the events that occurred from 5th September 2019. In fact, the Decree-Law no. 101 of 3rd September 2019, converted with modifications by law no. 128 of 2nd November 2019, provided for the extension of the protection for illness and hospitalization events of the workers registered with the Special Fund for Self-employed.

b.1) Hospitalization benefit, according to regulatory changes, is granted, for a maximum period of 180 days in the calendar year, to workers having:

-        at least one month of full-rate contributions paid in the Special Fund for self-employed in the 12 months preceding the hospitalization, or

-        a personal income, subject to the contributory obligation in the above-cited Fund, that not exceeds the 70 % of the contributory ceiling related to the calendar year preceding the one in which the hospitalization event occurred.

 

b.2) Sickness benefit, according to the regulatory changes, is granted, for a maximum number of days equal to one sixth of the overall duration of the employment relationship, and in any case for at least 20 days, to workers having:

-        at least one month of full-rate contributions paid in the Special Fund for self-employed in the 12 months preceding the sickness event, or

-        a personal income, subject to the contributory obligation in the above-cited Fund, that not exceeds the 70 % of the contributory ceiling related to the calendar year preceding the one in which the sickness event occurred.

With reference to these workers, under article 8, paragraph 10, Law no. 81 of 22nd May 2017, the sickness periods following therapeutic treatment for oncology diseases, severe chronic degenerative diseases or diseases resulting in a 100% temporary work disability, shall be equated to hospitalization periods. That means the application of more favourable provisions towards the sick worker, in terms of benefit duration and amount, as better referred to in point b) of the following section.

The benefit amount

a)   Employees

For the generality of the employees, the sickness benefit amount paid by INPS is equal to:

-   50% of the average daily wage paid in the month preceding the sickness occurrence, from the 4th to the 20th day;

-   66.66% of the average daily wage paid in the month preceding the sickness occurrence, from the 21st to 180th day.

For the entertainment sector workers, the sickness benefit amount paid by INPS is equal to:

-   60% of the average daily wage, calculated on the last 100 working days, from the 4th to the 20th day;

-   80% of the average daily wage, calculated on the last 100 working days, from the 21st to 180th day.

-   40% of the average daily wage for unemployed workers and for non-working days of the week in case of workers whose contract provides for working activity only in some specific days of the week.

For retailing sector and pastry shops workers, not registered with the Register of Craft Enterprises, the sickness benefit is equal to 80% of the average daily wage for the whole sickness duration.

With respect to the above cited percentages, connected to the different typologies of employees, the sickness benefit amount is further reduced of:

-   2/3, for unemployed and suspended workers;

-   2/5, for hospitalized persons without dependent family members[2] during the entire hospitalization period with the exception of the hospital discharge day for which, the above cited percentages, are entirely applied.

It should be noted that, generally, according to collective agreements of the different work sectors, employers are expected to pay an additional percentage of wage, which allows workers not to have an economic disadvantage from the sickness occurrence.

a.1) Specific sickness benefits for seafarers

Absolute temporary disability benefit for sickness occurring during embarkation (so called malattia fondamentale).

The sickness benefit amount is equal to 75% of the wage paid in the 30 days preceding the disembarkation.

Absolute temporary disability benefit for sickness occurring within 28 days from the disembarkation (so called malattia complementare);

The sickness benefit amount is equal to 75% of the wage paid in the 30 days preceding the disembarkation.

Temporary disability benefit for sickness - seafarers in continuity of employment.

The sickness benefit amount is equal to:

-   50% of the wage effectively paid at the date of the sickness occurrence, from the 4th to the 20th day;

-   66.66% of the wage effectively paid at the date of the sickness occurrence, from the 21st to the 180th day.

Benefit for temporary unfitness to embarkation resulting from common disease,

The sickness benefit amount is equal to 75% of the wage effectively paid at the disembarkation date.

b) Workers registered with the Special fund for self-employed

b.1) Hospitalization benefit

The benefit amount is calculated - with different percentages applied according to the number of contribution accrued in the 12 months preceding the hospitalization – by dividing the contributory ceiling of the year in which the hospitalization occurred, by 365, as provided by article 2, paragraph, 18 Law no. 335/1995.

Therefore, according to the above described calculation system, for hospitalizations starting before 5th September 2019, the benefit amount, calculated on € 277.88, is equal, for each day of hospitalization, to:

-      22.23 € (8%), in presence of accrued contribution from 3 to 4 months;

-      33.35 € (12%), in presence of accrued contribution from 5 to 8 months;

-      44.46 € (16%), in presence of accrued contribution from 9 to 12 months.  

For the hospitalizations starting after 5th September 2019 the benefit amount, calculated on the basis of € 280.94, is equal, for each day of hospitalization, to:

-      44.95 € (16%), in presence of accrued contribution from 3 to 4 months;

-      67.43 € (24%), in presence of accrued contribution from 5 to 8 months;

-      89.90 € (32%), in presence of accrued contribution from 9 to 12 months.  

b.1) Sickness benefit

The benefit amount is equal to 50% of the hospitalization benefit amount. Therefore, the sickness benefit is calculated – with different percentages applied according to the number of contribution accrued in the 12 months preceding the sickness occurrence - by dividing the contributory ceiling of the year in which the sickness occurred, by 365, as provided by article 2, paragraph, 18 Law no. 335/1995.

Therefore, according to the above described calculation system, for sickness events starting before 5th September 2019, the benefit amount, calculated on € 277.88, is equal, for each day of sickness, to:

-      11.12 € (4%), in presence of accrued contribution from 3 to 4 months;

-      16.67 € (6%), in presence of accrued contribution from 5 to 8 months;

-      22.23 € (8%), in presence of accrued contribution from 9 to 12 months.  

For the sickness events starting after 5th September 2019 the benefit amount, calculated on the basis of € 280.94, is equal, for each day of sickness, to:

-      22.48 € (8%), in presence of accrued contribution from 3 to 4 months;

-      33.71 € (12%), in presence of accrued contribution from 5 to 8 months;

-      44.95 € (16%), in presence of accrued contribution from 9 to 12 months.

 

 Medical certificates and submitting modalities

To receive sickness benefits, workers shall submit appropriate medical certificate to INPS and to employer, according to terms and modalities laid down by the law. 

The worker, who is off work due to sickness shall:

-   obtain the sickness certificate from the primary care doctor, who will electronically send it to INPS;

-   send or deliver the sickness certificate, if it is in hard copy, within the time limits laid down by the Law[3] (for certain category of seafarers, certificates are still issued in hard copy with specific forms);

-   communicate the address of availability, if it is different from the one reported on the sickness certificate;

-   stay at home for medical examination.

All the medical practitioners[4], under D.P.C.M. of 26th March 2008, are required to electronically send the sickness certificates to INPS (unless objective obstacles). These certificates, through the dedicated IT procedure, can be consulted both by the worker and by the employer; this last one, however, is not allowed to see the diagnosis. Whether the e-transmission is not possible, the worker shall send, within 2 days, the hard copy of the sickness certificate to the INPS competent territorial office and the sickness certificate without diagnosis to the employer. For certain category of seafarers, certificates are still issued in hard copy with specific forms

Sickness occurred in foreign Countries

In case of sickness occurred in an EU Country, Regulations in force provide for the application of the national provisions of the Country in which the worker resides. Therefore, the worker shall send, within 2 days, the sickness certificate both to INPS and to the employer.

In case of sickness occurrence in a third Country, the sickness certificate must be notarized (also with Notary seal stamps) by the Italian diplomatic and consular missions abroad in order to certify that it is valid as a sickness certificate, under the local provisions.

Home medical examinations

INPS can verify the health status of the private sector workers, who are off work due to sickness. The home medical examinations are performed both on employer request and on INPS own initiative; the request is electronically submitted through the procedure on the INPS website.

For the specific category of seafarers, home medical examinations are conducted, under INPS request, by the Ministry of Health through USMAF SASN clinics or through medical practitioners appointed by the same Ministry.

For the purposes of the medical examination, the sick worker must stay at home[5] every day of sickness, including holidays, at the scheduled times, set out by law. Whether the worker wasn’t found at home, he is called to go to the Local Health Office (ASL) or INPS to be examined; whether the worker doesn't go to the examination at Local Health Office (ASL) or INPS (up to a maximum of three times), increasing penalties, which go from a benefit reduction to the its withdrawal, are applied.

As from 1st September 2017, according to Article 18, paragraph 1, Legislative Decree no. 75 of 27th May 2017, the Polo Unico per le visite fiscali (a single center for home medical examinations) has been created. It gives to INPS the management of the medical examinations for both public sector workers and private sector ones, who are off work due to sickness. Therefore, from the above-mentioned date, INPS performs home medical examinations on request of Public Administrations, as employers, and on its own initiative, as well as it already does for private sector workers.

Extension of the protection for workers registered with the Special Fund for Self-employed

Article 1 of Legislative Decree n. 101 of 3 September 2019 "Urgent provisions for the protection of work and for the resolution of corporate crises", converted with amendments by Law no. 128 of 2 November 2019 ", provided for an extension of the protections in favor of the workers registered with the Special Fund for self-employed referred to as in article 2, paragraph 26, of the law of 8 August 1995, n. 335, non-pensioners and not registered in other compulsory social security forms, reducing the requirement for payment of the daily sickness and hospital stay allowance.

In fact, without prejudice to the current income requirements, the condition required by the new legislation towards the workers concerned, provides that only one month (instead of three) of the contribution due in the twelve months preceding the beginning of the event or the indemnifiable period is attributed.

The extension of the protection also covers periods of certified illness because of therapeutic treatments of oncological diseases, or of serious chronic-degenerative pathologies that are worsening or which in any case involve a temporary working incapacity of 100%, which are thus equated to hospital stay.

The new rules also provide for a 100% increase in the hospital stay allowance pursuant to Ministerial Decree January 12, 2001, resulting in the consequent doubling of the sickness allowance, the amount of which is equal to 50% of the first.

Covid-19 Quarantine

Article 26 of the decree-law no. 18/2020, converted with modifications by law no. 27/2020 "Urgent measures for the protection of the period of active surveillance of workers in the private sector", provides for economic protection to private-sector workers who are absent from work during periods of health surveillance and to workers who, because affected from severe pathologies, are in situations of greater risk for the health.

In fact, the quarantine period with active surveillance or fiduciary home stay with active surveillance (defined pursuant to article 2, paragraph 1, letters h) and i) of the decree-law n. 6 of 2020) and the precautionary quarantine (defined by article 1, paragraph 2, letters d) and e) of the law decree n. 19 of 2020), duly certified, thanks to this rule (art.26, paragraph 1) they are treated as equivalent to illness on the basis of the company sector and the qualification of the worker. It is also established that these periods are not to be counted for the achievement of the maximum limit for the behavior (period during which the worker absent from work has the right to job retention).

On the other hand, for workers in situations of greater risk to health, as they are affected by severe pathologies (art. 26, paragraph 2), the entire period of absence from the service, duly certified, is equated to hospital stay. Specifically, these are workers from the private and public sectors in possession of the recognition of disability with a connotation of seriousness (art. 3, co. 3 of law 104 of 1992) or in possession of the recognition of disability (art. 3, co. 1 of law 104 of 1992). For the cases of disability referred to in Article 3, co. 1, of the law n. 104 of 1992, protection is provided only in the presence of immunosuppression, outcomes from oncological pathologies and life-saving therapy. In the absence of the disability recognition report, it has been established that the risk condition can also be certified by the medical-legal bodies at the competent Local Health Authorities (ASL)


SICKNESS BENEFITS

STATISTICAL DATA

ART. 15 OF THE CODE

A.           It has been referred to subparagraph (a) of Art. 15

B.      The category of protected persons identified is that of private employees

C.      Pursuant to Art.74 – Title I

A. number of private employees (year 2019)

    (source: INPS, 2020 Provisional statement)

10,063,000

B. total number of employees (average 2019)

    (source: ISTAT, updated survey on the work force)

18,048,000

C. percentage between the INPS insured private employees (a) and the total number of employee (b)*

61.30%

*Almost all the employees not covered by sickness insurance paid by INPS is guaranteed by contract by the employer.

D. Does not occur

ART. 16 OF THE CODE

A. Pursuant to Art. 65 - Title I

A.  For the calculation rules, see section on sickness benefits.

    In the described cases, paragraph 3 of Art. 65 does not apply

B. Standard worker: third level metal worker of Art. 65, § 6, letter a).

The choice of the standard worker and the determination of the reference wages is explained at the end of the Report.

C.Yearly salary of standard worker

YEAR

YEARLY

SALARY

DAILY

SALARY

2019

€ 34,179.27

€ 109.55

2018

€ 33,808.13

€ 108.36

2017

€ 33,634.84

€ 107.80

1. Yearly wage does not vary in connection to the Region of the worker

2. It is not applied

A.  Pursuant to Art. 65 - Title II

D. Benefit Amount

- sick pay granted from the 4th to the 20th day of sick leave*

  (50% of the daily average total earning, also taking into account the 13th and 14th monthly rates)

€54.77

- sick pay granted from 21st to 180th day of sick leave

  (66.66% of daily average total earning calculated as above)

€73.03

* The first 3 days are of "absence" and if stated in the contract of employment shall be totally paid by the employer.

E/F.  Monthly amount of family allowances granted to a one-income male worker with a spouse and two children.

- period 1/1/2019 - 31/12/2019 (See Allegato 2020)

- Family allowances are paid in full amount for the days of absence paid or indemnified (sickness, maternity, holidays, etc.)

- Household yearly income refers to the previous calendar year starting from 1st July of each year.

Monthly

(Euro)

Days/26

(Euro)

period 1/1/2019 - 30/06/2019

Earning 2017 in the range 33,620.15 – 33,736.48

€79.58

€3.06

period 1/7/2019 - 31/12/2019

Earning 2018 in the range 33,754.74 – 33,872.35

€81.75

€3.14

Average amount in the period 1/1/2019 – 31/12/2919

€80.67

€3.10

G. Percentage between the worker’s earnings during the sick leave and his habitual earnings.

sick pay granted from the 4th to the 20th day of sick leave

(54.77+3.10)/(109.55+3.10)x100

51.4%

sick pay granted from the 21st to the 180th day  of sick leave

(73.03+3.10)/(109.55+3.10)x100

67.6%

A.  Pursuant to Art. 65 - Title V

Female worker’s income without charge on family with wage equal to the third level metal worker (See above)

D. Benefit Amount

sick pay granted from the 4th to the 20th day of sick leave*

(50% of the daily average total earning, preceding sickness onset, taking into account the 13th and 14th monthly rates)

€54.77

sick pay granted from 21st to 180th day of sick leave

(66.66% of daily average total earning calculated as above)

       €73.03

* (The first 3 days are of "absence" and if stated in the contract of employment shall be totally paid by the employer)

G. Percentage between a female worker’s earnings while benefiting of the sick leave and her habitual earnings while working.

sick pay granted from the 4th to the 20th day of sick leave

  (54.77/109.55)x100

50.0%

sick pay granted from the 21st to the 180th day of sick leave during the calendar year (73.03/109.55) x 100

66.7%

B. Does not occur

C. Specific benefits for particular categories are reported in the section on sickness benefits

ART. 17 OF THE CODE

The duration of the benefits is reported in the section on sickness benefits

ART. 18 OF THE CODE

The suspension conditions of the benefits are reported in the section on sickness benefits


PARTE IV

UNEMPLOYMENT BENEFITS

Law References

-      Article 28bis, §1, Reg. No. 31 of 18th December 1961, “The Conditions of employment of other officials of the European Communities";

-      Law No. 402 of 25 July 1975;

-      Article 4, §1 of the Legislative Decree No. 317/1987, converted into Law No. 398/1987;

-      Article 1, §2, letter g), of the Legislative Decree No. 181 of 21st April 2000;

-      Article 2, §1, Law no. 92 of 28th June 2012;

-      Prime Minister's Decree 159/2014;

-      Law No. 183 of 16th December 2014, “Enabling Act on the labour market and social shock-absorber Reform”;

-      Legislative Decree No. 22 of 4th March 2015 (Jobs Act) “Provisions on social shock-absorber; unemployed workers and their reallocation in the labour market”;

-      Legislative Decree No. 148 of 14th September 2015;

-      Legislative Decree No. 150 of 14th September 2015;

-      Article 1, §310, Law No. 208 of 28th December 2015;

-      Decree Law 24th April 2017 no. 50, converted with amendments by the Law no. 96 of 21st June 2017;

-      Article 7, Law no. 81 of 22nd May 2017 on "Measures for the protection of non-entrepreneurial self-employment and measures to encourage flexible employment in terms of working time and working place"

-      Legislative Decree no. 147 of 15th September 2017 containing "provisions for implementing a national measure to combat poverty".

-      Article 1, §133, §139 (social security), §190 and following paragraphs (asdi), Law no. 205 of 27th December 2017 (Budget Law 2018).

NASpI (Nuova Assicurazione Sociale per l’Impiego)

(Article 1, Title I, Legislative Decree no. 22 of 4th March 2015)

The NASpI is an unemployment benefit paid monthly, under application, to employees who have involuntarily lost their job.

The benefit has been implemented by Article 1 of the Legislative Decree No. 22 of 4th March 2015 containing “Provisions for the reform of legislation concerning social shock absorbers in the event of involuntary unemployment and re-employment of unemployed workers, in implementation of Law No. 183 of 10 December 2014” and it has replaced ASpI and MiniASpI for events of unemployment occurred as from 1st May 2015

Beneficiaries

NASpI is payable to:

-   private sector employees, excluding fixed-term and open-ended contract agricultural workers;

-   fixed-term contract employees of public administration;

-   apprentices;

-   workers, members of cooperatives with an employment relationship with their cooperatives, according to article 1, paragraph 3, Law no. 142 of 3rd April 2001 and subsequent modifications;

-   show business workers with an employment relationship.

Requirements

a)    involuntary unemployment

The necessary requirement is the involuntary unemployment status; however, the benefit is payable also in case of employee lawful resignation for employer misconduct. The benefit is not payable in cases of resignation or mutually agreed termination, except in specified cases:

-      the maternity leave period – from 300 days before the presumed date of delivery until the child turns one year old;

-      agreed termination in the context of a conciliation procedure at the Local Labour Directorate, under Art. 7, Law No. 604/1966, as replaced by the Art. 1, §40, Law No. 92 of 28th June 2012 (the Labour Market Reform Law);

-      dismissal with the acceptance of the conciliation offer (stated in Art. 6, §1 of Legislative Decree 23/2015) given by the employer within the terms of the dismissal extra-judgemental appeal (sixty days from the formal written dismissal communication, under Art. 6 Law No. 604/1966);

-      non-acceptance of a job transfer in a location which is distant more than 50 kilometres from the worker’s place of residence or more than 80 minutes away by public transport.

After the unemployment event, those concerned must register to the job centre (Centro per l’Impiego) and state that they are immediately available for work. The NASpI application submitted to INPS is equivalent to a declaration of immediate availability to work (DID – Dichiarazione di Immediata Disponibilità).

b) contribution requirement

Workers are eligible for NASpI if they have:

-      at least 13 weeks of contribution against unemployment in the four years preceding the starting period of unemployment;

-      regardless of the minimum of contribution, at least 30 days of effective work in the 12 months preceding the starting period of unemployment (one day of effective work is defined as one day of actual attendance in the workplace, regardless of the number of hours). For domestic workers it is not available the number of days worked, therefore this requirement is fulfilled with at least 5 weeks of accrued contributions, also deriving from more than one employment relationship; as one week is conventionally equal to 6 days, 5 weeks are equal to the required 30 days. With reference to other categories of workers for whom the number of days worked is not available (homeworkers, workers with contributions resulting from EU or other Countries forms), for the purpose of ascertaining whether the conditions are fulfilled, the requirement is of five weeks of effective contributions during the twelve months preceding termination of employment.

If the employee has also worked in the agricultural sector, the work periods can be aggregated in order to be entitled to the agricultural unemployment benefit or to the NASpI, on the basis of the “prevalence criterion” in the reference period.

NASpI  - How to apply for and starting date

NASpI application shall be electronically submitted to INPS within the term of 68 days from:

-   cessation date of the last employment; however, if during the 68 days occur:

o   an event of maternity for which is payable the maternity indemnity or

o   an event common sickness for which is payable the sickness benefit or an event of injury at work/occupational disease for which is payable by INAIL the corresponding benefit, provided that they occur within 60 days from the working relationship cessation,

the term for applying for NASpI is suspended for a time period equal to the event duration; it starts again at the end of the event for the residual part.

-   cessation date of the paid maternity period if it occurred during the working relationship, subsequently ceased;

-   cessation dates of the paid common sickness period or paid period for work injuries or occupational disease if they occurred during the working relationship, which is subsequently ceased;

-   definition date of the labour disputes or notification date of the legal judgement;

-   end date of additional notice period;

-   30th day after the cessation date due to lawful resignation for employer misconduct.

The NASpI starting date is on:

-   the 8° day after the cessation date of the working relationship, if the worker apply for NASpI within the 8° day; from the day following the application submitting date, if worker apply for NASpI after the 8° day but within the terms of the law;

-   the 8° day after the cessation date of the maternity, sickness, work injuries/occupational disease period or advance notification if the worker apply for NASpI within the 8° day; from the day following the application submitting date, if worker apply for NASpI after the 8° day but within the terms of the law;

-   the 38° day after lawful resignation for employer misconduct, if the worker apply for NASpI within the 38° day ; from the day following the application submitting date, if worker apply for NASpI after the 38° day but within the terms of the law.

NASpI maximum amount and duration

The benefit amount is calculated as follows:

-   75% of the average monthly income - taxable for social security purposes - of the last 4 years, if it is equal to or less than of the maximum amount, which is yearly established by law (€ 1,221.44 for 2019, € 1,227.55 for 2020).

-   if the average monthly income is higher than the above cited maximum amounts, the monthly benefit amount is calculated as follows:

o   75% of the maximum amount which is yearly established by law (see the above cited amounts for 2019 and 2020) increased by the,

o   25% of the difference between the average monthly income and the maximum amount established by law.

In any case, the amount of the benefit may not exceed a maximum limit, which is € 1,328.76 for 2019, € 1,335.40 for 2020.

The payment is on a monthly bases and includes, if due, family allowances.

The monthly benefit is reduced by 3% for each month, starting from the first day of the fourth month for which it is paid (the 91st day of the benefit).

It is also possible to receive the NASpI payment as an anticipated lump sum. In fact, in order to foster self-employment, the NASpI beneficiary, who want to begin a self-employed activity or to start up an individual enterprise or to pay the membership share for entering a cooperative, can apply for the total due amount of NASpI, not yet paid, as a lump sum, after submitting appropriate documentation proving the abovementioned cases. in this case, however, the NASpI period is not covered by deemed contribution neither the payment includes family allowances.

The duration of the monthly paid benefit is equal to the half of the contribution weeks paid in the last four years. For the purposes of the duration, contribution periods, which have been already calculated for the entitlement to other unemployment benefits, are not taken into account. The contribution periods already calculated for an anticipated lump sum, are also excluded.

The NASpI periods, paid monthly, are covered by deemed contribution, which is calculated on the taxable income for social security purposes of the last four years (the same modalities of the benefit amount determination). Deemed contribution are considered for the pension entitlement and amount.

Suspension, reduction and withdrawal of the benefit

NASpI is suspended in case of:

-      re-employment with an employment contract not exceeding six months of duration; after such period the NASpI continues to be paid for the remaining period;

-      new employment abroad, with an employment contract not exceeding six months of duration, whether in EU member Countries or Countries with which Italy has a bilateral agreement in the matter of unemployment, or in non-EU countries;

-      beneficiary’s failure to inform INPS about the expected annual income, within one month from the starting date of the new employment not exceeding six months of duration.

NASpI is reduced to 80% of the expected income, for the period between the starting date of the new employment and the end date of the benefit or, if preceding, the end of the year, in case of:

-      new employment, also para-subordinate work, if the annual income is lower than the minimum taxable income[6], which is necessary to maintain the unemployment status, provided that:

o   NASpI beneficiary informs INPS about the expected annual income, within one month from the starting date of the new employment;

o   employer or contractor, in case of para-subordinate work, are different from the employer or contractor of the ceased working relationship, which gave worker the entitlement to NASpI benefit;

-      self-employment if annual income is lower than the minimum taxable income[7], which is necessary to maintain the unemployment status provided that NASpI beneficiary informs INPS about the expected annual income, within one month from the starting date of the new activity;

-      re-employment with a discontinuous employment contract, provided that the income produced allows the unemployment benefit to be maintained and on condition that the beneficiary informs INPS of the presumed annual income within one month from the employment starting date.

Pursuant to art. 54 bis of Legislative Decree n. 50 of 2017, converted, with modifications, by L. n. 96 of 2017, the beneficiary of the NASpI service can carry out occasional work within the limits of remuneration for an amount not exceeding € 5,000 per calendar year. Within these limits, the NASpI allowance is fully cumulative with the compensation deriving from the performance of occasional work and the beneficiary of the NASpI service is not required to communicate the compensation deriving from the afore mentioned activity to INPS.

NASpI is withdrawn in case of:

-      omission to inform INPS about any of the above described working activities and the respective expected annual income within one month from the starting date;

-      new working activity of more than six months of duration;

-      qualifying conditions for old-age or early retirement pension are satisfied;

-      entitlement to invalidity allowance provided that the beneficiary does not opt for NASpI benefit;

-      breach of the obligation to participate in active policy measures targeted to unemployed worker (Article 21, paragraph 7, Legislative Decree no. 150/2015). This gives rise to sanctions, starting from the partial or total reduction of the monthly benefit amount to the benefit withdrawal.

Working abroad and NASpI

NASpI beneficiaries, who are seeking for a job in a Country subject to EU Regulations[8], can maintain the benefit abroad for three months; for the same period they are exempted from what stated in Article 21, paragraph 7, Legislative Decree no. 150/2015.

NASpI beneficiaries shall register as a jobseekers in the foreign Country; if, after three months, they are still unemployed they are not required to come back in Italy to receive the remaining benefit but they must newly register with the Italian employment center (Centro per l’Impiego) and they will be subject to what stated in Article 21, paragraph 7, Legislative Decree no. 150/2015.

NASpI is portable also in a non-EU Country only if it has a social security bilateral agreement with Italy which specifically provides for the unemployment benefit portability.

NASpI can be suspended up to a maximum of 6 months if the beneficiary goes abroad already obtaining an employment contract in Countries:

-      subject to EU Regulations; once the employment contract ceased, the suspended benefit is again paid, provided that the beneficiary didn’t apply for a similar benefit in the host Country as a worker registered with the employment office of that foreign Country;

-      non-EU Countries with social security bilateral agreement with Italy in the matter of unemployment;

-      neither EU nor with bilateral agreement with Italy in the matter of unemployment.

If NASpI beneficiary obtain an employment contract in Italy which provide for work abroad, in a Country subject to EU Regulations, the suspension, reduction and withdrawal criterion are those stated in article 9, Legislative Decree no. 22/2015 (see preceding section).

DIS-COLL (unemployment benefit for para-subordinate workers registered with the Special Fund for Self-employed)

(Article 15, Title II, Legislative Decree no. 22 of 4th March 2015 - Article 7, Law no. 81 of 22nd May 2017)

DIS-COLL is an unemployment benefit, paid monthly, for para-subordinate workers, also term-contract workers (excluding directors and auditors) not retire or registered for VAT, registered, on an exclusive basis, with the Special Fund for Self-employed, who have involuntary lost their working activity.

This benefit has been set up, on an experimental basis, by Article 15 of Legislative Decree 22/2015 for unemployment occurrences in the period from the 1st January 2015 to the 31st December 2015 and then it has been extended also for 2016 and 2017. As from the 1st July 2017, based on Article 7, Law 81/2017, DIS-COLL became permanent and the number of beneficiaries wider.

Finally, the decree-law 3 September 2019, n. 101, article 2, entitled "Changes to Legislative Decree no. 22 of 2015 ", introduced a novelty regarding the contribution requirement necessary for access to the DIS-COLL service, further modifying article 15, paragraph 2, of Legislative Decree n. 22 of 2015. In particular, the new article 15 provides that the benefit is granted to the subjects who - instead of the previous three months of contribution requested - can claim one month of contribution in the period from 1 January of the calendar year preceding the event of cessation from work to the aforementioned event.

Article 7 of the above cited Law, supplements Article 15, paragraph 15, of Legislative Decree 22/2015 with paragraph 15-bis which, as from 1st July 2017:

-   extends DIS-COLL to research and PhD students receiving grants for unemployment occurrences as from the above cited date;

-   doesn’t apply, for unemployment occurrences as from the above cited date, the provision under Article 15, paragraph 2, letter c) of Legislative Decree 22/2015[9], and the reference period is the calendar year.

-  

Beneficiaries

 

The DIS-COLL is granted to:

-      para-subordinate workers, also term-contract workers registered, on an exclusive basis, with the Special Fund for Self-employed;

-      research and PhD students receiving grants for unemployment occurrences as from 1st July 2017;

Requirements

-      involuntary unemployment status

-      at least three months of accrued contribution in the Special Fund for Self-employed, in the period from the 1st January of the calendar year preceding the work cessation to the date of the work cessation itself.

DIS-COLL starting date

The benefit starts from:

-   the 8° day after the para-subordinate work/research/PhD collaboration cessation date, if the worker applies for DIS-COLL within the 8° day;

-   the day after the DIS-COLL application if the worker applies after the 8° day;

-   the 8° day after the maternity/hospitalization[10] period if the worker applies during the paid maternity/hospitalization period;

-   the day after the DIS-COLL application if the worker applies after the maternity/hospitalization[11] period but within the terms of the law.

DIS-COLL maximum duration

The DIS-COLL benefit is monthly paid for a period equal to the half of the number of credited contribution months in the period from the 1st January of the calendar year preceding the work cessation to the work cessation date.

According to a note of the Ministry of Labor and Social Policies, of 21st April 2015, to calculate the benefit measure and duration, "contribution month or fraction thereof" means the duration in terms of months, or fractions of months, of one or more working relationship/collaboration. Therefore, the DIS-COLL is paid monthly for a period equal to half of the duration in terms of months or fractions of months of one or more working relationship/collaboration/ research fellowship / PhD with scholarshipexisting in the period from 1st January of the calendar year preceding the work/collaboration cessation to the work/collaboration cessation date. So, for the purposes of the benefit duration, single fractions of a month may also be considered.

For the duration purposes, contribution periods already calculated for the benefit payment, cannot be considered.

DIS-COLL has a maximum duration of 6 months.

DIS-COLL maximum amount

The benefit amount is:

-      75% of the average monthly income[12] if it is equal to or less than the amount annually established by law (€ 1,221.44 for 2019 and € 1,227.55 for 2020);

-      75% of the amount established by law, increased by the 25% of the difference between the average monthly income and the maximum amount annually established by law, if the average monthly income is higher than the abovementioned amounts.

In any case, the amount of the benefit may not exceed a maximum limit which is €1,328.76 for 2019 and €1,335.40 for 2020.

The DIS-COLL amount is reduced by 3% per month as from the first day of the fourth month of payment (the 91st day).

The DIS-COLL periods are not covered by deemed contributions.

Suspension, reduction and withdrawal of the benefit

DIS-COLL is suspended in case of new employment contract not exceeding 5 days of duration. The benefit is automatically suspended based on the mandatory communication of employment sent to INPS. After such period the DIS-COLL continues to be paid for the remaining period.

DIS-COLL is reduced to 80% of the expected income, for the period between the starting date of the new para-subordinate activity and the end date of the benefit or, if preceding, the end of the year, in case of:

-   self-employment or para-subordinate work, if the annual income is lower than the minimum taxable income (€4,800 for self-employment or €8.145 for para-subordinate work), provided that:

o   beneficiary informs INPS about the expected income, within one 30 days from the starting date of the new activity or, if the activity already exists, from the DIS-COLL application date;

Pursuant to art. 54 bis of Legislative Decree n. 50 of 2017, converted, with modifications, by L. n. 96 of 2017, the recipient of the DIS-COLL service can carry out occasional work within the limits of remuneration for an amount not exceeding € 5,000 per calendar year. Within these limits, the DIS-COLL allowance is fully cumulative with the compensation deriving from the occasional work and the beneficiary of the DIS-COLL service is not required to communicate the compensation deriving from the afore-mentioned activity to INPS.

DIS-COLL is withdrawn in case of:

-   omission to inform INPS about self-employment or para-subordinate work and the respective expected annual income within 30 days from the activity starting date;

-   new employment exceeding 5 days of duration;

-   entitlement to direct pensions;

-   entitlement to invalidity allowance provided that the beneficiary does not opt for DIS-COLL benefit;

-   discontinuous participation in active policy measures recommended by the employment centres;

-   refusal of a job-offer with appropriate remuneration.

Agricultural unemployment benefit

The agricultural unemployment benefit is intended to support the employees who work in agriculture, registered on the agricultural employees lists,

Beneficiaries

The benefit is paid to:

-      open-ended contract agricultural workers hired or fired up during the year of reference;

-      fixed-term contract agricultural workers;

-      small farmers;

-      family co-participants;

-      small farmers that integrate up to 51 days in the agricultural workers lists through voluntary contributions.

Requirements

Registration with the agricultural employees lists for the year to which the application relates or

open-ended contract agricultural work only for a part of the year to which the unemployment benefit refers, therefore generating unemployment periods for the part of the year not covered by the contract;

-      at least two years of insurance contribution against involuntary unemployment;

-      at least 102 daily contributions in the two-years period, consisting of the year of reference and the preceding year.

In order to reach the required 102 days, also contribution from non-agricultural working activity in the two-year period can be taken into account (provided that they are not prevalent), and deemed contribution from maternity mandatory leave and parental leave during the same reference period.

Benefit maximum amount

The benefit is granted for the number of days equal to the number of days that have been worked, within the maximum limit of 365 per year (the sum between days of benefit paid and days that have been worked must not exceed 365).

The benefit is paid by INPS in a lump sum as follows:

-      40% of the reference wage for fixed-term contract agricultural workers and equivalent workers. 9% of the daily benefit is deducted for each day of unemployment up to a maximum of 150 days as solidarity contribution.

-      30% of the effective wage for open-ended contract agricultural workers. It is not applied the deduction for the solidarity contribution.

The benefit maximum amount shall not exceed for 2019, €1,180.76 (with reference to upper ceiling) and €982.40 (with reference to lower ceiling). For 2020, €1,193.75 (with reference to upper ceiling) and €993.21 (with reference to lower ceiling).

Repatriated workers

(Law no. 402 of 25th July 1975)

It is an economic benefit, calculated on the basis of the conventional wages established by annual ministerial decrees, for workers repatriated in Italy after have been worked abroad.

Beneficiaries

The benefit is paid to Italian citizens who have worked abroad (both in Countries subject to EU Regulation or bilateral agreement and in Countries not subject to any agreement) and have lost their jobs as a result of the dismissal or non-renewal of the seasonal work contract abroad (foreign or Italian employer, working or residing abroad). They have been repatriated after the 1st November 1974.

Requirements

-      To be repatriated within 180 days from the date of the employment cessation;

-      to have declared the immediate availability for work within 30 days from the repatriation date.

The claim is not subject to time limits, neither the application date may affect the starting date of the benefit.

If a worker applies for the first time, the employment relationship duration abroad is not relevant, while for the following applications, the worker shall have been employed for at least of 12 months, 7 of which abroad.

Benefit starting date

The benefit starts from:

-   the date of the repatriation, if the unemployed has declared his availability to work within 7 days following the date of repatriation;

-   the date of the declaration of immediate availability to work, if the declaration is made from the 8th day and within the 30th day following the date of repatriation.

Benefit amount

The benefit amount is calculated on the basis of conventional wages (different on the basis of the level of the worker), of the benefit year of reference, published in the Official Journal.

Unemployed Italian citizen who repatriates from a foreign Country not bound by a Social Security Agreement with Italy, who fulfils the abovementioned requirements, is entitled to the unemployment benefit for the a maximum period of 180 days.

When the worker claims the benefit, he must enclose a special declaration of the dismissal or the non-renewal of the contract, issued by the employer abroad or by the competent Italian consular authorities.

Unemployed Italian citizen, that repatriates from a foreign Country that applies the EU Regulation, under Article. 64 of Regulation (EC) No. 883/2004, if he receives unemployment benefits on charge of a foreign State, when he repatriates to Italy seeking for a job he can maintain the entitlement to the benefit, for three months, up to a maximum of six months.

As the benefits on charge of foreign Institutions are directly paid to the worker by the Institution responsible for payment, before establishing entitlement to unemployment benefit for repatriated, it must be ascertained that in the source Country the worker has not acquired the entitlement to an unemployment benefit. In this case the repatriated benefit is determined on the information provided by the foreign Institution with the U1 form (certificate of insurance periods) and the days already indemnified by that Institution shall be deducted from the days due to repatriated unemployment benefit.

Unemployment benefit for former temporary or contract officers of the European Communities

(European Economic Community And European Atomic Energy Community)

(Article 28bis, paragraph 1, Reg. no. 31 of 18/12/1961, “Applicable Scheme for other officers of the European Communities”)

A special case is represented by the former temporary or contract officers for whom it is granted a monthly unemployment benefit if they are unemployed after the termination of their activity by an Institution of the European Community.

Beneficiaries

The benefit is paid to former temporary or contract officers if:

-      they are not entitled to early retirement pension or invalidity pension on charge on the European Communities;

-      the work cessation is not due to resignation or termination of a contract for disciplinary reasons;

-      they have worked for a period of at least six months;

-      they reside in a Member State of the Community.

The former officers must register as unemployed at the employment job centers of the Member State where they establish their residence and must fulfil the obligations required by the unemployment law of that State. Each month they must also send to the Institution to which they belonged, the certificate, EC-AATC form completed by the competent Institution of the State of residence certifying that they have complied with its requirements.

Please note also that pursuant to Regulation No. 31 (EEC), 11 (EAEC) of 18th December 1961 on the Statute of Officials and the Conditions of Employment of Other officials of the European Economic Community and the European Atomic Energy Community, the former temporary or contract officers of the European Communities who are Italian citizens and resident in Italy, will be entitled - in the presence of all requirements - the unemployment benefit for repatriated workers provided for by Law No. 402 of 1975.

WAGE SUBSIDIES

(Legislative Decree No. 148 of 14th September 2015)

(Law no. 183 of 16th December 2014)

Wage subsidies - Ordinary wage subsidy (CIGO) and Extraordinary wage subsidy (CIGS) for industry and construction - consist of economic benefits that supplement or replace the remuneration of workers, who have been suspended or reduced work activity due to critical business situations.

Ordinary wage subsidy (CIGO)

(Cassa integrazione guadagni ordinaria)

It is granted if the firm productivity difficulties are not caused by the firm management or employees, but by transient events, including seasonal weather and temporary market situations, and if the resumption of firm activity is grounded on objective evidence that the enterprise must prove in a detailed technical report to submit pursuant to Art. 47 of the Presidential Decree No. 445/2000.

Beneficiaries

Ordinary wage subsidy, here in after CIGO, can be granted     to workers with an employment contract, including apprentices with profession-oriented apprenticeship contracts, provided that on the date of benefit claim, they have an insurance of at least 90 days of effective work with the company. This condition is not required for applications of ordinary wage subsidies related to objectively unavoidable events.

The benefit does not concern:

-   directors;

-   home workers;

-   workers with apprenticeship contracts for vocational qualifications and with professional diplomas, upper secondary school diplomas and upper technical specialisation certificates;

-   workers with higher education and research apprenticeship contracts.

Companies concerned

-           industrial manufacturing enterprises, transport, mining, equipment installation, production and distribution of electricity, water and gas companies;

-           manufacturing and labour cooperatives operating in sectors like those of workers in industrial manufacturing enterprises, with the exception of the cooperatives listed in Presidential Decree No. 602 of 30 April 1970;

-           companies in the timber, forest and tobacco industries;

-           agricultural and livestock cooperatives and their consortia active in the transformation, handling and marketing of agricultural products only for workers with permanent employment contracts;

-           companies in the film rental and distribution sectors and in cinema film processing and printing;

-           industrial olive pressing enterprises operating on behalf of third parties;

-           producers of ready-mixed concrete;

-           electrical and telephone equipment companies;

-           railway equipment companies;

-           industrial manufacturing enterprises belonging to public bodies, unless company capital is entirely state-owned;

-           industrial and small-scale construction enterprises and similar enterprises;

-           industrial quarrying and/or stone processing companies;

-           small-scale quarrying and/or stone processing companies, with the exclusion of companies doing so in workshops with structures and organisations which are distinct from quarrying activities.

Benefit duration

 

CIGO is paid for a maximum period of 13 weeks on an ongoing basis which can be quarterly prolonged up to a total maximum of 52 weeks (Article 12, paragraphs 1-4, Legislative Decree 148/2015).

CIGO for more not continuous periods cannot exceed the total of 52 weeks in the “mobile” two-year period[13].

In compliance with the maximum duration of CIGO, authorized hours cannot exceed the limit of 1/3 of ordinary working hours in the mobile two-year period, with reference to all the production unit[14] workers on average employed in the semester preceding the application (Article 12, paragraph 5, Legislative Decree 148/2015).

Furthermore, there is a total maximum limit based on which, for each production unit the total of ordinary and extraordinary income supplements cannot exceed the duration of 24 months in the “mobile” five-years period. (Article 4, paragraph 1, Legislative Decree 148/2015). For the construction sector this maximum limit for each production unit is 30 months (Article 4, paragraph 2, Legislative Decree 148/2015).  

Changes following the epidemiological emergency from COVID-19

To deal with the economic effects of the epidemiological emergency, first at the local level with the decree-law 9/2020, then at national level with the decree-law of 17 March 2020, n. 18, converted, with modifications, by the law 24 April 2020, n. 27, subsequently modified by the decree-law 19 May 2020, n. 34, special forms of CIGO, for events attributable to the COVID-19 emergency: the application and the related investigation have been considerably simplified, providing for numerous derogations from the ordinary discipline described above (art.19 of the aforementioned decree-law n. 18/2020 ).

Extraordinary wage subsidy (CIGS)

(Cassa integrazione guadagni straordinaria)

The Extraordinary wage subsidy (here in after CIGS), granted by the Ministry of Labour, has the purpose of integrating or replacing the workers’ wage when the suspension or reduction of the work activity is determined by one of the following reasons:

-   business reorganization;

-   company crisis, with the exclusion, from 1 January 2016, of cases of cessation of the company's production activity or of a branch thereof;

-   Solidarity contracts[15]

Beneficiaries

See same section of CIGO.

Companies concerned

CIGS is addressed to the following companies, which in the previous six months the date of claim, have hired an average of more than fifteen employees (including apprentices and executives):

a)   industrial firms, including building and analogous;

b)   craft firms that suspend workers because of interruptions or reductions of the firm activity that exercise the predominant managerial impact;

c)   contractors of canteen or food services, that undergo to a reduction of activity caused by difficulty situations of the contracting firm, that has given rise to ordinary or extraordinarywage supplement;

d)   contractors of cleaning services, although established as a cooperative, which undergo a activity reduction as a result of the reduction of the contracting firm activities, that has given rise to ordinary or extraordinaryredundancy supplement;

e)   firms in the auxiliary sectors of the rail service, or the areas of the production and maintenance of railway equipment;

f)    co-operative firms in the processing of agricultural products and its related consortia;

g)   security firms.

Extraordinary redundancy fund payment and mandatory contribution rules are also applicable to the following enterprises, which in the six months prior the claim date, have employed an average of more than fifty employees, including apprentices and executives:

a)   Firmscarrying out commercial activities, including logistics;

b)   travel and tourism agencies, including tour operators.

The same law and the same mandatory contributions apply, regardless of the number of employees, in relation to the following categories:

a)   aviation and airport management companies, and firms deriving from these, as well as firms of the airport system;

b)   political and movements parties and its respective intersections and territorial sections.

For publishing firms and printers of newspapers and for the nationally distributing news agencies the specific discipline of the extraordinaryredundancy supplement is still applicable. The Benefit is granted to professional journalists, publicists and practitioners, regardless to the dimensional limits (Articles 35 and 37 Law No. 416/81).

Benefit duration

For company reorganization, the benefit is paid for each production unit for a maximum period of 24 months, even continuous, in a mobile five-year period.

For economic crisis and for each production unit, the benefit is paid for a maximum period of 12 months, even continuous. A new authorization cannot be granted before the expiry of a period equal to two thirds of that related to the previous authorization.

For solidarity contracts, and for each production unit, the benefit is paid for each production unit for maximum 24 months, even continuous, in a mobile five-year period.

Furthermore, there is an overall ceiling (Art. 4, paragraph 1, Legislative Decree No. 148/2015). For each production unit, the sum of authorized ordinary and extraordinary wage supplement must not exceed the maximum total duration of 24 months in a mobile five-year period.

For building companies and, industrial quarrying and/or stone processing companies for each production unit, the benefit is paid for a maximum period of 30 months, both for ordinary and extraordinary income supplement. (Art. 4, paragraph 2, Legislative Decree No. 148/2015)

In addition, for solidarity contracts, the calculation purpose of the above mentioned maximum total period, the duration of the benefits is taken in consideration to the extent of half for the part not exceeding 24 months and in full for the exceeding part.

Changes following the epidemiological emergency from COVID-19

In order to manage the consequences of the epidemiological emergency also with reference to companies that were undergoing extraordinary layoffs, art. 20 of the decree-law 17 March 2020, n. 18, converted, with modifications, by the law 24 April 2020, n. 27, subsequently modified by the decree-law 19 May 2020, n. 34, provided for the possibility of suspending the aforementioned treatment and simultaneously requesting the special performance of CIGO for COVID-19 pursuant to art. 19 of the same decree-law 18/2020, provided that the requesting company falls within the scope of the ordinary wage supplements (see art. 10 of Legislative Decree no. 148/15). Otherwise, once the treatment of CIGS has been suspended, the companies access the redundancy fund pursuant to art. 22 of the same decree-law of 17 March 2020, no. 18, converted, with modifications, by the law 27/2020, as modified by the decree-law n. 34/2020.

Benefit amount

For both ordinary or extraordinary income supplement the amount of the benefit is equal to 80% of the total wage that the worker would have received for the not worked hours not, between zero and the contractual time work limit.

Starting from 1st January of each year, the benefit amount, as well as the monthly reference wage, is increased at the rate of 100% of the increase resulting from variation in the annual ISTAT index of consumer prices for families of workers and employees.

The amount of the benefit is subject to the provisions of Art. 26, Law No. 41 of 28th February 1986, and must not exceed the following maximum monthly amounts that, however, must be related to the number of authorized hours and that may be granted for a maximum of twelve months, including additional monthly payments:

2019

2020

Income

(€)

Gross amount (€)

Income

(€)

Gross amount (€)

<= 2,148.74

993.21

<= 2,159.48

998.18

>   2,148.74

1,193.75

>   2,159.48

1,199.72

The maximum amounts should be increased, pursuant to Art. 2, § 17, of Law No. 549 of 28th December 1995, to the additional amount of 20 per cent for wage supplement granted in favour of industrial quarrying and/or stone processing companies. Therefore, for the above cited categories, the maximum monthly amounts are the following:

2019

2020

Income

(€)

Gross amount (€)

Income

(€)

Gross amount (€)

<= 2,148.74

1,191.85

<= 2,159.48

1,197.82

>   2,148.74

1,432.50

>   2,159.48

1,439.66


UNEMPLOYMENT BENEFITS

STATISTICAL DATA

ART. 21 OF THE CODE

A.   It has been referred to in subparagraph (a) of Art. 21

B.   The category of protected persons identified is of private employees

C.    Pursuant to Art.74 - Title I

A.

number of protected employees (year 2019)

14,945,000

(source: INPS, 2020 Provisional statement)

B.

total number of employees (average 2019)

18,048,000

(source: ISTAT, updated survey on the work force)

C.

Percentage between private employee (A) and the total number of employee (B)

82.81%

D. Does not occur

ART. 22 OF THE CODE

A. Pursuant to Art. 65 – Title I

A. As regards to the calculation rules, see the section on unemployment benefits.

In the cases we are referring to, § 3 - Art. 65 does not recur. The monthly income ceiling for 2020 to have 75% of the benefit amount is 1,227.55; over this ceiling the benefit amount decreases to 25%. The maximum benefit monthly amount for 2020 is 1,335.40.

B.Standard beneficiary, third level metal worker, Art. 65, § 6, letter a)

The choice of the standard worker and the determination of the reference wages is explained in at the end of the report.

C.Yearly salary of standard beneficiary:

YEAR

YEARLY SALARY

DAILY SALARY

2019

€ 34,179.27

€ 109.55

2018

€ 33,808.13

€ 108.36

2017

€ 33,634.84

€ 107.80

2016

€ 33,295.43

€ 106.72

1. Salary does not vary in relation to the worker’s Region

2. It does not apply

A.  Pursuant to Art.65 - Title II

D. Benefit amount

- Average monthly taxable income to social security aim in the last four years (Average years 2016 – 2019)

€2,810.78

- Monthly wage limit for the year 2020 within the level of benefit is equal to the 75% and beyond which it descends to 25%

€1,227.55

- Upper ceiling monthly benefit amount for the year 2020

- for the days indemnifiable in the first three months (30 gg month)

- for the days indemnifiable in the 24th month

(reduction of 3% per month from the 4th to 24th month)

€1,335.40

€43.88

€23.15

E/F. Monthly amount of family allowances granted to a male worker one income household with a spouse and two children.

-  period 1/1/2019 - 31/12/2019 (See Allegato 2020)

-  Family allowances are paid in full amount for the days of absence paid or indemnified (sickness, maternity, holidays, etc.)

-  Household yearly income refers to the previous calendar year starting from 1st July of each year

Monthly

(euro)

Days/30

(euro)

period 1/1/2019 - 30/06/2019

Earning 2017 in the range 33,620.15 – 33,736.48

€79.58

€2.65

period 1/7/2019 - 31/12/2019

Earning 2018 in the range 33,754.74 – 33,872.35

€81.75

€2.73

Average amount in the period 1/1/2019 – 31/12/2919

€80.67

€2.69

G. Percentage between the worker’s earnings during the sick leave and his habitual earnings. 

- for the days indemnifiable in the first three months (30 days month) (43.88+2.69)/(109.55+2.69)x100                                                           41.5%

- for the days indemnifiable in the 24th month

  (23.15+2.69)/(109.55+2.69)x100                                                               23.0%

A.  Pursuant to Art. 65 - Title V

Female worker’s income without charge on family with wage equal to the third level metal worker (See above)

D. Benefit Amount

- Average monthly taxable income to social security aim in the last four years (Average years 2016 – 2019)

€2,810.78

- Monthly wage limit for the year 2020 within the level of benefit is equal to the 75% and beyond which it descends to 25%

€1,227.55

- Upper ceiling monthly benefit amount for the year 2020

- for the days indemnifiable in the first three months (30 gg month)

- for the days indemnifiable in the 24th month

(reduction of 3% per month from the 4th to 24th month)

€1,335.40

€43.88

€23.15

G. Percentage of the female worker's income in the event of unemployment and its standard income

- for the payable days in the first three months (30 gg month)                         40.1%

  (43.88/109.55)x100                                                                            

- for the payable days in the 24th month                                                         21.1%

  (reduction of 3% per month from the 4th to 24th month)

  (23.15/109.55)x100                                                                            

B.   It does not occur

C. Specific benefits for particular categories are reported in the section on unemployment benefits.

PART IX

DISABILITY BENEFITS

Law References

-    Article7, paragraph 1, letter a), Law No. 379, 11st April 1955 "Improvements of pension and amendments to the laws regulating social security Institutions by Ministry of the Treasury”;

-    Article 6, paragraph 2, Presidential Decree No. 1420, 31st December 1971 "Rules on compulsory insurance for invalidity, old age and survivors managed by National Welfare and Assistance Office for Workers in the Entertainment Business and Sport”;

-    Particles 42, 52 and 219 paragraph 5, Presidential Decree No. 1092 29th December, 1973 "Approval of Consolidated Act on pension benefit of the civilian and military personnel of the State";

-    Article 8, Decree No. 463, 9th December 1983, converted into Law No. 638, 11st November 1983, "Urgent measures for social security and for the containment of public expenditure, provisions for various sectors of public administration and extension of some time limit”;

-    Article 1, paragraphs 3, 4, 5, 9, Law No. 222, 12nd June, 1984 "Revision of the rules on pensionable disability”;

-    Law No. 335, 8th August, 1995 "Reform of the mandatory and supplementary pension system”;

-    Legislative Decree No. 182, 30th April, 1997 "Implementation of the delegation conferred by Article 2, paragraphs 22 and 23, letter a) of the Law No. 335, 8th August 1995, regarding the pension scheme for workers in the entertainment registered in ENPALS ";

-    Articles 6 and 24 paragraph 2, Law Decree No. 201, 6th December 2011, with amendments, by Law No. 214, 22nd December 2011 "Urgent measures for the growth, equity and consolidation of public finances”;


GENERALITY OF WORKERS

Ordinary disability allowance (Assegno ordinario di invalidità)

Article 6, paragraph 2, D.P.R. no. 1420, 31.12.1971

Article 2, paragraph 3, article 5, Law no. 222, 12.6.1984

Law no. 335/95

Article 6 and 24 paragraph 2, Law Decree 201/2011, conv. by Law 214/2011.

Beneficiary and requirements

-      Employees;

-      self-Employed (craftsmen, traders, farmers, sharecroppers and settlers);

-      workers registered with Pension Funds replacing, excluding and integrating the General Mandatory Insurance (AGO) Scheme.

Workers suffering from physical or mental disabilities which affect their working capacity may, if the health and social security requirements are met, apply for an ordinary disability allowance. Workers shall:

-      have a work capacity reduced to less than one third;

-      be insured from at least 5 years and have minimum 5 years of credited contribution, 3 of which must have been paid in the 5 years preceding the claim.

It is not required cessation from work.

The ordinary invalidity allowance is granted up to a maximum of three years, it is renewable on request of the beneficiary, who will be subjected to a new forensic medical examination. After the third consecutive renewal, the allowance is automatically confirmed, without prejudice to the right to review.

The invalidity allowance is automatically transformed into old-age pension upon reaching the prescribed age for retirement, which for 2019 and 2020 is 67 years, provided that the pensioner has ceased work activity and has at least 20 years of contributions.

The invalidity allowance is not reversible to the survivors.

Benefit calculation and amount

The allowance amount depends on the number of contributions accrued. Calculation system varies according to the starting date of the insurance period.

Category 1 – Contribution-related calculation system

For insured persons whose insurance period began on or after January 1st 1996 (no contribution before this date), the pension is based only on contribution-related calculation system.

Contributions are adjusted annually according to the average rate of increase in gross domestic product (GDP) during the last 5 years. The lifetime accrued contribution amount is multiplied by an actuarial coefficient that varies according to the insured's age (from 4,200% at age 57 to 6,513% at age 71). If the invalidity began before age 57, the coefficient corresponding to age 57 is used.

Category 2 – Mixed calculation system (contribution-related/earning-related):

This system provides for the application of the earning-related calculation on a part of accrued contribution, and precisely:

-   on contribution credited within 31st December 1995, for insured persons with less than 18 years of contribution at the same date;

-   on contribution credited until 31st December 2011, for insured persons with at least or more than 18 years of contribution at 31st December 1995 (insured persons who, before the entering in force of the Monti-Fornero Law, totally fell within the earning-related calculation system).

The earning-related calculation system is based on a transformation rate[16] of reference earnings multiplied by the number of years of contributions up to a maximum of 40 years. Annual earnings for benefit calculation are adjusted according to changes in the cost-of-living index, for years before 1993, and to changes in the retail price index, for years after 1992.

For contribution periods beginning from 1st January 1996 (workers with less than 18 years of contribution at 31st December 1995) and from 1st January 2012 (workers with more than 18 years of contribution at 31st December 1995), the pension is calculated as per Category 1.

The benefit may be granted even if the person continues to work but it is reduced in case of income deriving from employment, self-employment or entrepreneurship as follows:

INCOME AMOUNT

REDUCTION PERCENTAGE

Income 4 times greater than the annual minimum pension due to employees as it results by multiplying by 13 the monthly amount due on 01st January 2019 and 2020

25 % of pension allowance.

Income 5 times greater than the annual minimum pension due to employees as it results by multiplying by 13 the monthly amount due on 01st January 2019 and 2020

50 % of pension allowance.

Minimum pension (TM): 513.01 for 2019; €515.07 for 2020.    

Ordinary disability allowance reduction in presence of other income

(article 1, paragraph 42, Law 335/95)

YEAR

INCOME AMOUNT

% of reduction

2019

Up to € 26,676.52 (TM x 52)

None

between € 26,676.53 and € 33,345.66 (TM x 65)

25 percent

over € 33,345.66

50 percent

2020

Up to € 26,783.64 (TM x 52)

None

between € 26,783.65 and € 33,479.56 (TM x 65)

25 percent

over € 33,479.56

50 percent

Minimum pension (TM): 513.01 for 2019; €515.07 for 2020.

Allowance reassessment

The allowance is subject both to medical reassessment in order to confirm the state of invalidity and to means-testing in order to confirm that the beneficiary income requirement does not exceed the ceilings established by law.

INCOME LIMIT

Year

Personal ceiling

(TM X 39)

2019

20,007.39

2020

20,087.73

Minimum pension (TM): 513.01 for 2019; €515.07 for 2020.

Minimum income supplement of the benefit

(Art. 1, paragraphs 3, 4, 5, Law no. 222/1984)

If the allowance amount results less than the minimum pension, it is integrated up to the amount of the social allowance (€457.99 for 2019 and € 459.83 for 2020), if the beneficiary incomes do not exceed twice the amount of the social allowance. If the beneficiary is married, the household income must not exceed three times the amount of the social allowance.

The income to be considered are taxable, except for the income of the house of residence.

INCOME CEILINGS

YEAR

Single household’s (SA*x26)

(Euro)

Family household’s (SAx39)

(Euro)

2019

11,907.74

17,861.61

2020

11,955.58

17,933.37

*Social allowance


Disability pension (pensione di inabilità)

Article 6, paragraph 2, D.P.R. no. 1420, 31.12.1971

Article 2, paragraph 3, article 5, Law no. 222, 12.6.1984

Law no. 335/95

Article 6 and 24 paragraph 2, Law Decree 201/2011, conv. by Law 214/2011.

Beneficiary and requirements

-      Employees;

-      Self-Employed (craftsmen, traders, farmers, sharecroppers and settlers);

-      Insured registered on Pension Fund replacing, excluding and integrating the General Mandatory Insurance (AGO) Scheme;

-      total and permanent incapacity at any working activity, as a result of sickness or infirmity (physical or mental);

-      Minimum 5 years of contribution, (260 weekly contributions), 3 of which (156 weeks) must have been paid in the 5 years preceding the benefit application;

-      cessation of any working activity;

-      waiver to benefits of the compulsory insurance against unemployment and to any other substitutive or complementary wage benefit.

Pension amount

Incapacity pension amount is calculated by considering the whole beneficiary credited contribution added with a virtual “contribution bonus” equal to the number of years which are lacking until the beneficiary turning 60. The bonus cannot let the beneficiary exceeding the maximum period of 40 years (2080 weeks).

Incapacity pension beneficiaries cannot perform any kind of working activities, whether employed or self-employed; furthermore, it cannot be combined with the INAIL (National Institute for Insurance against Industrial Accidents) allowance for injuries at work or occupational disease.

Disability pension is reversible to the survivors.

Pension calculation

The pension amount is determined with the following method of calculation:

-      Mixed (a share calculated with the earning related system and a share with the contribution related calculation system);

-          contribution related calculation system, if the employee has started to work after 31.12.1995.

DISABILITY PENSION FOR SPECIFIC CATEGORY OF WORKERS

Specific disability pension for workers registered with Entertainment Industry Fund (FPLS)

(Article. 8, letters a-b-c of Decree of the President of the Republic no. 1420/1971)

The Specific Disability Pension is a benefit exclusively managed by the Fund FPLS. It is granted to certain category of workers registered with the FPLS, who are recognized as disables and cannot permanently and absolutely perform any task of their specific prevalent and habitual profession. Habitual and prevalent activity means that the worker lives, mainly, with the means provided by that activity.

The specific invalidity pension payment starts on the 1st day of the month following the one in which the claim has been submitted. It may be subject to reassessment.

The pension is reversible to the survivors.

The professional categories that may apply for such a benefit are specifically identified by law:

-      prose actors, operetta, magazine, variety and attractions, presenters and disc jockeys;

-      generic film actors, the film dubbing actors;

-      directors of orchestra and substitutes, background actors and models, lyrical artists;

-      orchestra musicians, singers, pop singers;

-      concert musician dancers and Terpsichore.

Requirements

(Legislative Decree no. 182 of 30th April 1997)

Health and age requirements

Insurance requirements

Contribution requirements

Permanently and absolute disability to perform their usual and prevalent business qualification function.

5 years of insurance

600* daily contributions of which at least 120 in the three years preceding the pension claim. Contributions should refer only to usual and prevalent activity of the worker.

at least 30 years of age

* contribution must be referred to the habitual and prevalent professional activity of the worker

Privileged disability allowance and the privileged disability pension only for workers employed in the entertainment industry sector

(Assegno privilegiato e pensione privilegiata di Inabilità)

For these two benefits, the same conditions described above for the ordinary disability allowance and the disability pension, are required but the state of being disable must be due to service reasons (work-related).

Requirements

a)   Personal requirement: work-related disability or incapacity, which makes the worker unfit for work

b)   Contribution requirement: at least one daily contribution effectively paid.

As regards the other benefits provided by the Entertainment industry Fund and and Professional Sportmen Fund, such as the ordinary disability allowance, the disability pension, the survivors' pension, apply the same requirements of the generality of employees, without prejudice to the specific contributions and specific calculation rules of these sectors.

Privileged direct pension for civil servants (pensione diretta di privilegio)

It is a benefit paid to the personnel belonging to the defence safety and public aid sectors registered with the specific Fund excluding the AGO (Civil servants Fund), who became unfit to work for diseases due to cause of service.

Before December 6th, 2011 (date of entry into force of the reform Fornero - Law Decree No. 201 of 2011, converted into Law No. 214 of 2011) the privileged pension was granted, occurring the above described conditions, to all public employees registered on the exclusive fund of former INPDAP.

Cause of service is a physical damage or disease due to causes or conditions inherent in the type of performed work. The privileged pension is granted independently from the years of service.

The sicknesses caused by working activity are divided into eight categories, from the first (severe disease) to the eighth (less severe); if the diseases worsen, the beneficiary may, at any time, apply for the pension revision (so-called worsening) and for the pension reassessment.

The privileged pension starts from the day following the date of cessation of service.

The benefit is an annuity and is payable to the survivors.

Ordinary incapacity pensions for civil servants (pensioni di inabilità ordinaria)

Granted after the health assessment claimed by the employee or the employer.

Requirements

a) civil servants registered on the former INPDAP Fund

-      Totally and permanent incapacity to any gainful work, certified by medical-collegial visit;

-      15 years of contribution requirement (14 years, 11 months and 16 days) of useful service;

-      no minimum age requirement.

b) civil servants belonging to the Local Authorities Bodies and Health Services

-      Totally and permanent disability to the performed duties, certified by medical-collegial visit;

-    20 years of contribution requirement (19 years, 11 months and 16 days) of useful service;

-    no minimum age requirement.

Pension starts from the day following the date of working activity cessation.

The benefit is an annuity and is payable to the survivors.


DISABILITY BENEFIT

STATISTICAL DATA

Protection is provided for by laws and covers all employees who are insured under a compulsory scheme but does not coincide with the entire economically active population:

ART. 55 OF THE CODE

A.  It has been referred to in subparagraph (a) of Art. 55

B.  The category of protected persons identified is that of private employees

C.  Pursuant to Art.74, Title I

A)  number of protected employees (year 2019)

     (source: INPS, 2020 Provisional statement)

14,363,100

B) total number of employees (average 2017)

(source: ISTAT, updated survey on the work force)

18,048,000

C) INPS insured (a) and the total number of employee (b)

79.58%

D. Does not occur

ART. 56 OF THE CODE

A. Pursuant to Art. 65 Title I

A. As regards the calculation rules, see the section on disability benefits. In the cases we are referring to, § 3 - Art. 65 does not recur.

B. Standard beneficiary, third level metal male worker, Art. 65, § 6, letter a)

The choice of the standard worker and the determination of the reference wages is reported at the end of the report.

C.Yearly salary of standard beneficiary:

YEAR

YEARLY SALARY

2019

€ 34,179.27

2018

€ 33,808.13

1. Salary does not vary in relation to the worker’s Region

2. It does not apply

A.  Pursuant to Art. 65 - Title II

D. Benefit Amount according to the Art. 57, § 1, letter a)

CASE 1: Invalidity allowance – Contribution-related calculation system

Age requirement = 40 years, contribution requirement = 15 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

-

0

0

Share pension C (from 1996 onwards)

522.64

780

15

Gross monthly pension

522.64

780

15

Gross yearly pension

6,794.32

Case 2: Invalidity allowance – mixed calculation system

Age requirement = 40 years, contribution requirement = 25 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

52.68

52

1

Share pension C (from 1996 onwards)

839.63

1,248

24

Gross monthly pension

892.31

1,300

25

Gross yearly pension

11,600.03

Case 3: Disability pension - Contribution-related calculation system

Age requirement = 40 years, contribution requirement = 15 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

-

0

0

Share pension C (from 1996 onwards)

522.64

780

15

Increase for disability

734.85

1,040

20

Gross monthly pension

1,257.49

1,820

35

Gross yearly pension

16,347.37

Case 4: Disability pension mixed calculation system

Age requirement = 40 years, contribution requirement = 25 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

52.68

52

1

Share pension C (from 1996 onwards)

839.63

1,248

24

Increase for disability

553.27

780

15

Gross monthly pension

1,445.58

2,080

40

Gross yearly pension

18,792.54

E/F.  Monthly amount of family allowances granted to a male worker one income household with a spouse and two children.

- Period 1/1/2020 - 31/12/2020 (See Allegato 2020)

-  Household yearly income refers to the previous calendar year starting from 1st July of each year.

Monthly

period 1/1/2020 - 30/06/2020

Earning 2018 in the range 33,754.74 – 33,872.35

€81.75

period 1/7/2020 - 31/12/2020

Earning 2019 in the range 34,159.92 – 34,278.12

€79.58

G.Percentage of the male worker's income in the event of unemployment and its standard income

Years

%

Case 1

Invalidity allowance

15

22.1%

Case 2

Invalidity allowance

25

35.8%

Case 3

Disability pension

15

49.3%

Case 4

Disability pension

25

56.2%

A.  Pursuant to Art.65 - Title V

Female worker’s income without charge on family with wage equal to the third level metal worker (See above)

D. Benefit Amount according to the Art. 57, § 1, letter a)

CASE 1: Invalidity allowance – Contribution-related calculation system

Age requirement = 40 years, contribution requirement = 15 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

-

0

0

Share pension C (from 1996 onwards)

522.64

780

15

Gross monthly pension

522.64

780

15

Gross yearly pension

6,794.32

Case 2: Invalidity allowance – mixed calculation system

Age requirement = 40 years, contribution requirement = 25 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

52.68

52

1

Share pension C (from 1996 onwards)

839.63

1,248

24

Gross monthly pension

892.31

1,300

25

Gross yearly pension

11,600.03

Case 3: Disability pension - Contribution-related calculation system

Age requirement = 40 years, contribution requirement = 15 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

0

0

Share pension B

0

0

Share pension C (from 1996 onwards)

522.64

780

15

Increase for disability

734.85

1,040

20

Gross monthly pension

1,257.49

1,820

35

Gross yearly pension

16,347.37

Case 4: Disability pension mixed calculation system

Age requirement = 40 years, contribution requirement = 25 years,

starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

52.68

52

1

Share pension C (from 1996 onwards)

839.63

1,248

24

Increase for disability

553.27

780

15

Gross monthly pension

1,445.58

2,080

40

Gross yearly pension

18,792.54

G. Percentage of the female worker's income in the event of unemployment and its standard income

Years

%

Case 1

Invalidity allowance

15

19.9%

Case 2

invalidity allowance

25

33.9%

Case 3

Disability pension

15

47.8%

Case 4

Disability pension

25

55.0%

B.   Does not occur

C.    Pursuant Art. 65 – Title VI

1 As regards the method of adjustment of the benefits, see section on pension adjustment in Report on article 74.

2.Change in consumer prices[17]

6.    Change in wages prices[18]

Period of reference

Consumer prices index for both employees and blue collar workers household (without tobaccos)

Monthly average

Gross wages index for annual work units (Unità Lavorative Annue (ULA)

Quarterly average

A. year 2018

 102.2

102.03

B. year 2019

 102.7

103.68

C. percentage B/A

0.5%

1.62%

3.Change in pension benefits (minimum income)

Period of reference

Minimum pension income

A.    beginning of period 2018 (monthly amount)

€ 507.42

B.    end of period 2019 (monthly amounts)

€ 513.01

C. percentage B/A

1.1%


PART X

SURVIVORS’ BENEFITS

Law References

-              R.D.L. No. 636 of 14th April 1939,

-              Law No. 898 of 1st December 1970

-              Law No. 335 of 8th August 1995

-              Law No. 903 of 21st July 1965

-              Law Decree No. 98 of 6th July 2011, converted with amendments into Law No. 111 of 15th July 2011

-              Judgement, No. 174/2016 of the Constitutional Court

-        Law no. 76 of 20th May 2016

Field of application

Protection is provided for by laws and regulations in the Italian Social Security legislation under the compulsory scheme for Old age, Invalidity and Survivors’ benefits.

Beneficiaries

Family members entitled to survivors' pension:

-   spouse, even if separated, or partner in a civil union; if the spouse is separated by charge, the survivors' pension is granted only if there is entitlement to alimony recognized by a Court Judgment;

-   the divorced spouse if he/she is entitled to alimony, is not remarried and the insurance starting date of the deceased beneficiary is prior to the date of the sentence pronouncing the dissolution or cessation of the civil effects of the marriage. If the assignor has contracted a new marriage after the divorce, the shares due to the surviving spouse and the divorced spouse are established by a judgment of the Court;

-   children aged less than 18 at the death date of the pensioner

-   disable children, regardless of the age, dependent on the deceased pensioner at the death date

-   children over 18, dependent on the deceased pensioner at the death date and do not perform paid work, who attend schools or professional training courses equivalent to school courses, in the age limit of 21 years

-   children over 18, dependent on the deceased pensioner at the death date and do not perform paid work, who attend university courses for the entire duration of the legal degree of the university course, in the age limit of 26 years;

-   students are entitled to survivors’ pension also in case they are performing a working activity if their annual earnings are not higher than the minimum pension amount increased by 30% and based on the duration of the working activity

-   nephews, nieces, or grandchildren minor, who were dependent on the deceased ancestor;

in absence of the spouse, children and nephews:

-              dependent parents older than 65 of age, if they are not entitled to a pension and, in their absence,

-              unmarried disable brothers and sisters who were dependent on the deceased and without entitlement to a direct or indirect pension;

Requirements

In case of death of an insured worker or pensioner, his/her family members are entitled to claim survivor's benefits, which is of two kinds:

-   survivor's pension, (pensione di reversibilità) if the deceased was a pensioner receiving an old-age, seniority, or disability pension;

-   indirect pension, (pensione indiretta), if the deceased was working at the time of death. In this case, the deceased must have accrued, at least, 15 years of contributions or 5 years of contributions, including 3 in the last 5 years before death.

If the above requirements are not satisfied a lump sum is granted to the survivors, and specifically:

death allowance to survivors of deceased workers, insured at 31/12/1995, in case:

they were not retired yet;

they had at least 1 contribution credited in the 5 years preceding the death;

severance allowance to survivors of deceased workers, insured after 31/12/1995, in case:

contribution and insurance requirements for indirect pension are not satisfied;

they are not entitled to annuity for work injury or occupational disease, as a consequence of the insured’s death;

they have the income requirement to be entitled to the social allowance (for 2017, €5,824.91 single person annual income, €11,649.82 married person annual income; for 2018, €5.889 single person annual income, €11,778 married person annual income).

These pension rates are subject to five-years period of prescription.

Level of the benefit

The amount of survivor’s benefit is equal to a percentage of the pension received by the deceased or, if the deceased was not yet pensioner, the pension to which he/she would have been entitled to.

Those percentages, based on the amount of the worker's pension, vary according to the survivor that is claiming the benefit.

The amount of pension to be paid is established as below:

CLAIMANT

% of pension amount paid to survivors

only the spouse*

60%

only a child, without a spouse

70%

spouse and one child, or two children without a spouse

80%

spouse and two or more children, or three or more children without a spouse

100%

any other entitled relative different from the spouse, children or nephew

15%

In any case, the sum of all shares may not exceed 100% of the pension to which the deceased worker would have been entitled.

Non-cumulation with the beneficiary’s income

From September 1st, 1995, the survivors’ pension is calculated by considering the income of the survivor (spouse, or, in the absence of children and spouse, parents or brothers and sisters work disabled). The pension amount is subject to a percentage reduction based on the following means test:

REDUCTION OF THE SURVIVORS’ PENSION

IN RELATION TO THE BENEFICIARY’S PERSONAL INCOME

YEAR

INCOME AMOUNT

% OF REDUCTION

2019

Up to € 20,007.39

None

from € 20,007.40 to € 26,676.52 (TM x 52)

25 %

From € 26,676.53 to € 33,345.65 (TM x 65)

40 %

Over € 33,345.66

50 %

2020

Up to € 20,087.73

None

From € 20,087.74 to € 26,783.64 (TM x 52)

25 %

From € 26,783.65 to € 33,479.55 (TM x 65)

40 %

Over € 33,479.56

50 %

TM: minimum pension amount

The means test doesn’t apply if the beneficiary is in a nuclear family with minors, students of disables.

Survivor pension ceases on remarriage. In this case, it is paid only a lump sum in proportion with the allocated pension share, including the thirteenth month payment, and in relation to the new marriage date.


SURVIVORS’ BENEFITS

STATISTICAL DATA

ART. 60 OF THE CODE

1.        It has been referred to Art. 60, § 2

2.        The methods of the reduction are described in previous section.

ART. 61 OF THE CODE

A.  It has been referred to subparagraph (a) of Art. 61

B.  The category of protected persons identified is that of survivors of private employees

C.  Pursuant to Art.74, Title I

A.  Number of private protected employees (Year 2019)

(Source: INPS, Preliminary budget 2020)

14,363.100

B.  Total number of employees (average 2019) is:

(source: ISTAT, updated survey on the work force)

18,048.000

C. Percentage between the number of private employees insured INPS (A) and the total of employees (B)

79.58%

D. Does not occur

ART. 62 OF THE CODE

A.  Pursuant to Art. 65 – Title I

A. As regards the calculation rules, see the section on survivors’ benefits. In the cases envisaged in § 3 does not recur Art. 65

B.  Standard beneficiary, third level metal worker, Art. 65, § 6, letter a).

    The choice of the standard worker and the determination of the reference wages is explained at the end of the report.

C.    Yearly salary of standard beneficiary:

D.  

YEAR

YEARLY SALARY

2019

€ 34,179.27

2018

€ 33,808.13

1.  The annual salary does not change in relation to the worker's region

2.  Does not occur

A.  Pursuant to Art. 65 – Title IV

D.

Benefit amount according to article 63, 1. (a)

Case 1: Survivors of the insured person -Contribution-related calculation system

Age requirement = 40 years, contribution requirement = 15 years

Starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

-

0

0

Share pension C (from 1996 onwards)

522.64

780

15

Gross monthly amount (deceased person)

522.64

780

15

Gross yearly amount (deceased person)

6,794.32

Widow gross annual pension amount (60%)

4,076.59

Gross annual pension amount for each son (20%)

1,358.86

Surviving nucleus gross annual pension amount (100%)

6,794.32

Case 2: Survivors of the insured person - Mixed calculation system

Age requirement = 40 years, contribution requirement = 25 years

Starting date 1.1.2020

Euro

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

52.68

52

1

Share pension C (from 1996 onwards)

839.63

1,248

24

Gross monthly amount (deceased person)

892.31

1,300

25

Gross yearly amount (deceased person)

11,600.03

Widow gross annual pension amount (60%)

6,960.02

Gross annual amount pension for each son (20%)

2,320.01

Surviving nucleus gross annual pension amount (100%)

11,600.03

E. Monthly amount of family allowances granted to a male worker one income household with a spouse and two children.

- period 1/1/2020 - 31/12/2020 (See Allegato 2020)

- Household yearly income refers to the previous calendar year starting from 1st July of each year.

Monthly

period 1/1/2020 - 31/12/2020

4 components - Earning 2018 in the range 33,754.74 – 33,872.35

€81.75

period 1/7/2020 - 31/12/2020

4 components - Earning 2019 in the range 34,159.92 – 34,278.12

€79.58

F. Allowance monthly amount for a surviving household in the year of retirement effective starting date

- period 1/1/2020 - 31/12/2020 (See Allegato 2020)

- Household yearly income refers to the previous calendar year starting from 1st July of each year.

Monthly

period 1/1/2020 - 31/12/2020

3 components - Earning 2018=0

€258.33

period 1/7/2020 - 31/12/2020

3 components - Earning 2019=0

€258.33

G.Percentage of the survivors’ household income and the deceased worker’s household income

Years

%

Case 1

Survivors’ pension

15

28.2

Case 2

Survivors’ pension

25

41.8

A.  Pursuant to Art.65 - Title V

Female worker’s income without charge on family with wage equal to the third level metal worker (See above)

D. Benefit Amount according to the Art. 63, § 1, letter a)

Case 1: Survivors of the insured person- Contribution-related calculation system

Age requirement = 40 years, contribution requirement = 15 years

Starting date 1.1.2020

(Euro)

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

-

0

0

Share pension C (from 1996 onwards)

522.64

780

15

Gross monthly amount (deceased person)

522.64

780

15

Gross yearly amount (deceased person)

6,794.32

Widow gross annual pension amount (60%)

4,076.59

Reduction because the 2019 income is higher than € 33,345.65 (-50%)

-2,038.30

Actual yearly gross pension of the widow

2,038.30

Case 2: Survivors of the insured person - Mixed calculation system

Age requirement = 40 years, contribution requirement = 25 years

Starting date 1.1.2020

(Euro)

insurance contribution per week

insurance contribution per year

Share pension A

-

0

0

Share pension B

52.68

52

1

Share pension C (from 1996 onwards)

839.63

1,248

24

Gross monthly amount (deceased person)

892.31

1,300

25

Gross yearly amount (deceased person)

11,600.03

Widow gross annual pension amount (60%)

6,960.02

Reduction because the 2019 income is higher than € 33,345.65 (-50%)

-3,480.01

Actual yearly gross pension of the widow

3,480.01

G. Percentage of the survivors’ household income and the deceased worker’s household income

Years

%

Case 1

Survivors’ pension

15

6.0

Case 2

Survivors’ pension

25

10.2

B.  Does not occur

C.  Pursuant to Art. 65 – Title VI

1.    As regards the method of adjustment of the benefits, see section on pension adjustment in Report on article 74.

2.    Variation in wages and the cost of living.

Period taken into account

Changes in the consumer price index for families of workers and employees

(Excluding tobacco)

Index of gross wages per AWU (final values)

A.

Beginning of year 2018 (monthly average)

102.2

102.03

B.

End of period 2019 (monthly average)

102.7

103.68

C.

percentage variation B/A

0.5%

1.6%

3.    Pension benefits variation (Minimum)

Period taken into account

minimum income supplement

(definitive values)

A.

Beginning of year 2018 (monthly average)

€507.42

B.

End of period 2019 (monthly average)

€513.01

C.

percentage variation B/A

1.1%


CONTRIBUTION RATES OF GENERAL COMPULSORY SCHEME

1.            Employees (private sector workers and civil servants)

Pursuant article 2, paragraph 18, Law No. 335 of 8th August 1995, with reference to workers falling within the contribution-related calculation system, the remuneration exceeding the maximum amount annually established by law, is neither subject to social security contribution nor included in pension benefit calculation.

Under the above-cited Article, the annual maximum amount of the pensionable contribution is equal to € 102,543.00 for 2019 and to € 103,055.00 for 2020, for the new insured workers as from 1st January 1996 registered with compulsory pension schemes and for those who opt for the contribution related system.

For insured workers before January 1st, 1996, the social security contribution is paid on the full taxable salary.

The minimum wage limit for the accreditation of compulsory and deemed contributions is set at 40% of the minimum pension amount, which is € 513.01 for 2019 and € 515.58 for 2020.

The maximum contribution ceiling[19] is equal to € 186,919.00 for 2019 and to € 187,854.00 for 2020, only for workers registered with the public sector schemes (ex-INPDAP), for general directors, administrative employees and health workers of the local health authorities and hospitals.

Contribution rate: 33% (employers: 23.81%; workers: 9.19%).

The remuneration, which the employer has to take into account for social security contribution calculation, cannot be lower than the remuneration amount annually established by laws, regulations, collective agreements or individual contracts, if it results in remuneration of a higher amount than the one provided for by the collective agreement[20].

The minimum revalued daily remuneration is € 48.74 for 2019 and € 48.98 for 2020 (9.5% of the minimum income supplement amount paid by the Employees’ pension Fund equal to, respectively, € 513.01 and € 515.58 per month) in case of a lower remuneration.

The lower daily earnings ceiling for conventional remuneration is equal to € 27.07 for 2019 and to € 27.21 for 2020.

Since 1st January 1993, an additional rate[21] of one percentage point applies on the worker remuneration quota, which exceed the limit of the first bracket of pensionable wage (€ 47,143.00 for 2019 and € 47,379.00 for 2020); this additional rate is due for all pension schemes that provide for a contribution rate lower than 10% on charge of the worker. Therefore, the 1% additional rate shall apply on the wage amount exceeding, respectively, € 47,143.00 and € 47,379.00, equal to € 3,929.00 and € 3,948.00 per month.

YEAR 2019

Minimum pension amount

513.01

Weekly limit for the accrued contributions (40%)

205.20

Yearly limit for accrued contributions, rounded to the nearest unit (€ 205.20 x 52)

10,670.00

YEAR 2020

Minimum pension amount

515.58

Weekly limit for the accrued contributions (40%)

206.23

Yearly limit for accrued contributions, rounded to the nearest unit (€x 206,23 x 52)

10,724.00

2019 - CONTRIBITION RATES                                                                                                                                                                                                                                                                                                                                          INDUSTRY in general (enterprises with maximum 15 employees)

CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S

CONTRIBUTION ITEMS

EMPLOYMENT STATUS

 Workers

 Employees

Travellers door-to-door salesmen

 Executives

Lower daily earnings limit 

48.74

48.74

48.74

134.81

Pension Fund

33.00

33.00

33.00

33.00

New ordinary unemployment benefit (NASpI):

Contrib. ex Article 24 Law No. 88/1989

1.31

1.31

1.31

1.31

Contrib. ex Article 25 Law No. 845/1978 

0.30

0.30

0.30

0.30

Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)

0.20

0.20

0.20

0.40

Unique Fund for Family Allowances (CUAF) (*)

0.68

0.68

0.68

0.68

Ordinary income support benefit (CIG)

1.70

1.70

1.70

-

Extraordinary income support benefit (CIGS)

Outplacement benefit

Sickness benefit

2.22

-

-

-

Maternity benefit

0.46

0.46

0.24

0.46

TOTAL (open-ended contract workers)

39.87

37.65

37.43

36.15

New ordinary unemployment benefit (NASpI) Additional Contrib. Article 2, paragraph 28, Law No. 92/2012

1,40

1,40

1,40

1,40

TOTAL (fixed-term contract workers)

                         

41,27

39,05

38,83

37,55

of which of employees’ share

Pension Fund

9,19

9,19

9,19

9,19

Extraordinary income support benefit (CIGS)

-

-

-

-

TOTAL of employees’ share

9,19

9,19

9,19

9,19

Exemption granted for the sector:

1.80%

(*) CUAF

2.48 - 1.80=0.68%

Note:                                                                                                                                                                  

If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives).

This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS.

2019 - CONTRIBITION RATES

 INDUSTRY in general (enterprises with over 15 and less than 50 employees)

CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S

CONTRIBUTION ITEMS

EMPLOYMENT STATUS

 Workers

 Employees

Travellers door-to-door salesmen

 Executives

Lower daily earnings limit 

48.74

48.74

48.74

134.81

Pension Fund

33.00

33.00

33.00

33.00

New ordinary unemployment benefit (NASpI):

Contrib. ex Article 24 Law No. 88/1989

1.31

1.31

1.31

1.31

Contrib. ex Article 25 Law No. 845/1978 

0.30

0.30

0.30

0.30

Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)

0.20

0.20

0.20

0.40

Unique Fund for Family Allowances (CUAF) (*)

0.68

0.68

0.68

0.68

Ordinary income support benefit (CIG)

1.70

1.70

1.70

Extraordinary income support benefit (CIGS)

0.90

0.90

0.90

Outplacement benefit

Sickness benefit

2.22

-

-

-

Maternity benefit

0.46

0.46

0.24

0.46

TOTAL  (open-ended contract workers)

40.77

38.55

38.33

36.15

New ordinary unemployment benefit (NASpI) Additional Contrib. Article 2, paragraph 28, Law No. 92/2012

1.40

1.40

1.40

1.40

TOTAL (fixed-term contract workers)

                         

42.17

39.95

39.73

37.55

of which of employees’ share

Pension Fund

9.19

9.19

9.19

9.19

Extraordinary income support benefit (CIGS)

0.30

0.30

0.30

-

TOTAL of employees’ share

9.49

9.49

9.49

9.19

Exemption granted for the sector:

1.80%

(*) CUAF

2.48-1.80=0.68%

Note:                                                                                                                                                                  

If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives).

This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS.

2019 - CONTRIBITION RATES                                                                                                                                                                                                                                                                                                                                     INDUSTRY in general (enterprises with more than 50 employees)

CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S

CONTRIBUTION ITEMS

EMPLOYMENT STATUS

 Workers

 Employees

Travellers door-to-door salesmen

 Executives

Lower daily earnings limit 

48.74

48.74

48.74

134.81

Pension Fund

33.00

33.00

33.00

33.00

New ordinary unemployment benefit (NASpI):

Contrib. ex Article 24 Law No. 88/1989

1.31

1.31

1.31

1.31

Contrib. ex Article 25 Law No. 845/1978 

0.30

0.30

0.30

0.30

Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)

0.20

0.20

0.20

0.40

Unique Fund for Family Allowances (CUAF) (*)

0.68

0.68

0.68

0.68

Ordinary income support benefit (CIG)

2.00

2.00

2.00

Extraordinary income support benefit (CIGS)

0.90

0.90

0.90

-

Outplacement benefit

Sickness benefit

2.22

-

-

-

Maternity benefit

0.46

0.46

0.24

0.46

TOTAL

41.07

38.85

38.63

36.15

of which of employees’ share

Pension Fund

9.19

9.19

9.19

9.19

Extraordinary income support benefit (CIGS)

0.30

0.30

0.30

-

TOTAL of employees’ share

9.49

9.49

9.49

9.19

Exemption granted for the sector:

1.80%

(*) CUAF

2.48 -1.80=0.68%

Note:                                                                                                                                                                  

If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives).

This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS.

2020 - CONTRIBITION RATES                                                                                                                                                                                                                                                                                                                                          INDUSTRY in general (enterprises with maximum 15 employees)

CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S

CONTRIBUTION ITEMS

EMPLOYMENT STATUS

 Workers

 Employees

Travellers door-to-door salesmen

 Executives

Lower daily earnings limit 

48.98

48.98

48.98

135.48

Pension Fund

33.00

33.00

33.00

33.00

New ordinary unemployment benefit (NASpI):

Contrib. ex Article 24 Law No. 88/1989

1.31

1.31

1.31

1.31

Contrib. ex Article 25 Law No. 845/1978 

0.30

0.30

0.30

0.30

Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)

0.20

0.20

0.20

0.40

Unique Fund for Family Allowances (CUAF) (*)

0.68

0.68

0.68

0.68

Ordinary income support benefit (CIG)

1.70

1.70

1.70

-

Extraordinary income support benefit (CIGS)

Outplacement benefit

Sickness benefit

2.22

-

-

-

Maternity benefit

0.46

0.46

0.24

0.46

TOTAL (open-ended contract workers)

39.87

37.65

37.43

36.15

New ordinary unemployment benefit (NASpI) Additional Contrib. Article 2, paragraph 28, Law No. 92/2012

1.40

1,40

1.40

1.40

TOTAL (fixed-term contract workers)

                         

41.27

39.05

38.83

37.55

of which of employees’ share

Pension Fund

9.19

9.19

9.19

9.19

Extraordinary income support benefit (CIGS)

-

-

.-

-

TOTAL of employees’ share

9.19

9.19

9.19

9.19

Exemption granted for the sector:

1.80%

.

(*) CUAF

2.48 - 1.80=0.68%

Note:                                                                                                                                                                  

If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives).

From the year 2008, you can take advantage of the additional exemption, in the same percentage above, set in 0.28 percentage points since the year 2014. This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS. As of July 2018, the additional contribution increases by 0.5 percentage points during each renewal of the fixed-term contract, even under the administration system.

                                                              


2020 - CONTRIBITION RATES

 INDUSTRY in general (enterprises with over 15 and less than 50 employees)

CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S

CONTRIBUTION ITEMS

EMPLOYMENT STATUS

 Workers

 Employees

Travellers door-to-door salesmen

 Executives

Lower daily earnings limit 

48.98

48.98

48.98

135.48

Pension Fund

33.00

33.00

33.00

33.00

New ordinary unemployment benefit (NASpI):

Contrib. ex Article 24 Law No. 88/1989

1.31

1.31

1.31

1.31

Contrib. ex Article 25 Law No. 845/1978 

0.30

0.30

0.30

0.30

Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)

0.20

0.20

0.20

0.40

Unique Fund for Family Allowances (CUAF) (*)

0.68

0.68

0.68

0.68

Ordinary income support benefit (CIG)

1.70

1.70

1.70

Extraordinary income support benefit (CIGS)

0.90

0.90

0.90

Outplacement benefit

Sickness benefit

2.22

-

-

-

Maternity benefit

0.46

0.46

0.24

0.46

TOTAL  (open-ended contract workers)

40.77

38.55

38.33

36.15

New ordinary unemployment benefit (NASpI) Additional Contrib. Article 2, paragraph 28, Law No. 92/2012

1.40

1.40

1.40

1.40

TOTAL (fixed-term contract workers)

                         

42.17

39.95

39.73

37.55

of which of employees’ share

Pension Fund

9.19

9.19

9.19

9.19

Extraordinary income support benefit (CIGS)

0.30

0.30

0.30

-

TOTAL of employees’ share

9.49

9.49

9.49

9.19

Exemption granted for the sector:

1.80%

(*) CUAF

2.48-1.80=0.68%

Note:                                                                                                                                                                  

If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives).

From the year 2008, you can take advantage of the additional exemption, in the same percentage above, set in 0.28 percentage points since the year 2014. This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS. As of July 2018, the additional contribution increases by 0.5 percentage points during each renewal of the fixed-term contract, even under the administration system.


 

2020 - CONTRIBITION RATES                                                                                                                                                                                                                                                                                                                                     INDUSTRY in general (enterprises with more than 50 employees)

CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S

CONTRIBUTION ITEMS

EMPLOYMENT STATUS

 Workers

 Employees

Travellers door-to-door salesmen

 Executives

Lower daily earnings limit 

48.98

48.98

48.98

135.48

Pension Fund

33.00

33.00

33.00

33.00

New ordinary unemployment benefit (NASpI):

Contrib. ex Article 24 Law No. 88/1989

1.31

1.31

1.31

1.31

Contrib. ex Article 25 Law No. 845/1978 

0.30

0.30

0.30

0.30

Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)

0.20

0.20

0.20

0.40

Unique Fund for Family Allowances (CUAF) (*)

0.68

0.68

0.68

0.68

Ordinary income support benefit (CIG)

2.00

2.00

2.00

Extraordinary income support benefit (CIGS)

0.90

0.90

0.90

-

Outplacement benefit

Sickness benefit

2.22

-

-

-

Maternity benefit

0.46

0.46

0.24

0.46

TOTAL

41.07

38.85

38.63

36.15

of which of employees’ share

Pension Fund

9.19

9.19

9.19

9.19

Extraordinary income support benefit (CIGS)

0.30

0.30

0.30

-

TOTAL of employees’ share

9.49

9.49

9.49

9.19

Exemption granted for the sector:

1.80%

(*) CUAF

2.48 -1.80=0.68%

Note:                                                                                                                                                                  

If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives).

From the year 2008, you can take advantage of the additional exemption, in the same percentage above, set in 0.28 percentage points since the year 2014. This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS.

Contributions for ordinary earnings supplement (CIGO)

Law No. 183/2014, Art. 1, § 2, letter a), point 6 states criteria for reduction and a redistribution of contributions for financing the benefit and a distinction of them among the various sectors according to the effective use.

ordinary earnings supplement(CIGO) RATES

a) 1.70 percent of taxable income for social security purposes for employees of industrial enterprises with up to 50 employees;

b) 2.00 percent of taxable income for social security purposes for employees of industrial enterprises with more than 50 employees;

c) 4.70 percent of taxable income for social security purposes for construction sector workers;

d) 3.30 percent of taxable income for social security purposes for workers in industrial and small-scale quarrying and stone processing companies;

e) 1.70 percent of taxable income for social security purposes for employees and managers of industrial and small-scale quarrying and stone processing companies with up to 50 employees;

f) 2.00 percent of taxable income for social security purposes for employees and managers of

industrial and small-scale quarrying and stone processing companies with over 50 employees.

Additional contribution

Law No. 183/214 establishes a greater involvement of the firms that receive the benefit and lays down an additional contribution to be borne by companies that apply for income su