PART I

                                     

INPS Organization

The current organization of the Institute, outlined by the Organizing Regulation and the Organization of INPS structures at central and territorial level (“Regolamento di Organizzazione” and “Ordinamento delle Funzioni centrali e territoriali”[1]), establishes the organization of the Headquarter and the territorial Structures. The following table shows an overview of the structures and the functions:   

1	General Directorate: performs functions of direction, coordination, planning and control, for the implementation of its bodies’ regulations. It is divided into 19 central departments, 1 consultancy, study and research assignments, 1 national projects, 4 offices of professionals, 4 central offices and 5 bodies support offices
23	20 Regional Directorates and 3 Directorates of Metropolitan Coordination of Milan, Rome and, Napoli: provide a valuable work for stakeholders, guaranteeing efficient services and an efficient institutional processes management of the territorial structures, implementing the guidelines and programs defined by the Directorate-General
116	103 Provincial Directorates, 12 Metropolitan Agencies and 1 provincial agency: ensure the provision of services related to contribution flows and documents’ control and surveillance audit, benefits and allowances to entitled persons, control on compliance and customer care.
315	40 Complex Agencies and 275 Territorial Agencies: operating structures close to customers with functions of orientation, consulting and providing services,
9	Social Structures: carry out the institutional functions to the benefit of insured people, pensioners and their relatives
89	Inps Points (Punti Inps): organization forms, set up in synergy with other Public Administration Institutions, for providing a more efficient services and closeness to customers thanks to the presence of Institute staff
223	User’s Points (Punti Cliente): telematics counters set up in Municipalities, other Public Administrations and Associations, where only predefined and complementary services are guaranteed regarding institutional functions of the Administration/Association that request those services

Changes in the organization of public social security institutions

Article 25 of the Legislative Decree No. 4 of 28^th January 2019 reintroduced the Board of Directors[2] in the public social security institutions and repeals paragraph 8 of article 7 of the Law Decree No. 78 of 31^st May 2010, converted, with amendments, into Law No. 122 of 30^th July 2010.^[3]

The new INPS Board of Directors has been appointed by Decree of the President of the Council of Ministers (DPCM) of 16^th December 2019. It consists of total five members, including the President of INPS, who chairs it, the Vice-President and three members. The Board will be in office for four years.

The INPS online services are provided via:

1.           Institutional web portal (www.inps.it)

2.           Mobile Site

3.           Multichannel Contact Centre (MCC)

4.           PEC - Certified e-mail

5.           Two-way communication with companies

The Institute is also on social media - Facebook, Twitter and Instagram profiles – through which provides users with update news and real-time information about its services and initiatives. On INPS YouTube channel are uploaded videos contaning institutional communication and other activities.

To access the online services, customers can also be assisted by Institutional intermediaries namely Patronati (institutions for advice and social assistance), CAF (tax assistance centers) and professional associations.

Use of the institutional web-site

All services, social security and welfare benefits of INPS are fully and directly accessible on the its web site (www.inps.it) that currently represents the key channel of communication with customers.

The portal is fully responsive, adaptable to any device, and completely redesigned in the graphics, offering more interaction, powerful, immediate, and intuitive navigation modalities.

In the area called “MyInps”, accessible entering the tax code and PIN code or SPID code or National Service Card number (CNS)[4], completely personal and reserved the customer can find the news and items of his own interest (the information linked to his profile), the status of ongoing proceedings, the history and outcome of the already existing interactions, the digital copy of the decisions already issued, or other personal documents.

Services provided on mobile devices

The “INPS Servizi Mobile” (INPS Mobile Services) applications allow interaction with some online services, which are available on the website www.inps.it, by using mobile devices (mobile phones, smartphones and tablets).

With the “Mobile Inps Press Office”, available for smartphones and tablets, users receive press releases and news on mobile devices, keeping them constantly updated on the Institute's real-time communications.

INPS-INAIL Multi-channel Contact Center

The Contact Center INPS-INAIL offers a communication structure that ensures accessibility and promptness of information and services.

Bilingual operators provide information in foreign languages: German, English, French, Arabic, Polish, Spanish and Russian. If a customer needs a consultation with expert officers, the operator will book an appointment at the competent territorial office.

It is also available InpsRisponde service, an additional channel to forward requests for clarification on regulatory/procedural aspects or information on individual cases. Customers are required to fill an online form on the website. InpsRisponde is managed, at a first level, by the Contact Center INPS-INAIL operators and, in case complex questions, by the INPS local offices.

Two-way communication with companies

Companies, self-employed workers and their intermediaries, have a customized channel of contact with the Institute: the Social Security contribution record (Cassetto previdenziale), available on the INPS web portal, provides for an effective channel for expert consulting, which, as a result, improves the quality of service. It provides for the possibility to access the INPS database, providing, in real time, a summary of the social security information.

Gross production volume and the Productivity index

The productivity index, that measures the relationship between production made and resources used in production areas, on 31^st December 2019 is equal to 127.93 homogenized points, on a national level, in line with the target value assigned for the reference period (124)[5].

Backlog index

The backlog index (expressed in days) at the 31^st December 2019 is equal to 62 days for the front office and to 138 for the back office[6].

Service quality index

The quantitative measurement of homogenized production is cross-checked with other qualitative indexes. The results of the different indexes are available on “Cruscotto Qualità”, a quality dashboard where each production structure is constantly monitored in terms of achieved quality level in connection with the efficiency, effectiveness and cost-effectiveness objectives.

The synthetic quality index, related to the production areas, shows for 2019, an improvement of 10.26% (national average) in the service quality, in comparison with the previous year[7].

Data collection on “customer experience”

The Inps Performance Plan for the three-year period 2019-2021 includes a specific objective related to the “Improvement of the service to customers”. In this regard, Inps has carried out, during 2019, a data collection on “customer experience”. Customers were asked to fill out a questionnaire for evaluating their own experience after dealing with an Inps office. The processing of the data collection outcomes helped contributing to the determination of four satisfaction levels, one for each contact channel (Office Index, Web Index, Contact Center Index, Patronato Index) as well as of a overall satisfaction final index of the customers. Having taken into account these outcomes, the overall satisfaction final index for 2020 has been fixed at 3.50 (on a scale from 1 to 5).

Cost-effectiveness

The cost-effectiveness of managing activity is monitored with an articulated series of indicators that relate the economic resources used with the production carried out and the human resources employed; these indicators are fundamental for assessing the consistency of economic management with respect to the results achieved.

Nothing to report

Nothing to report

Social security cost

The expenditure for benefits managed by INPS for the year 2019[8]amounted to 332.4 billion Euro, of which 287.6 billion for pension benefits, included assistance benefits for civil disability, and 44.9 billion for temporary economic benefits and others benefits.

Each month INPS pays overall 20.9 million pensions for about 16 million beneficiaries, of which 7.7 million (48%) men and 8.3 million (52%) women.

INPS pays both social security pensions (invalidity, old age, and survivors’ pension – IVS) and welfare-based benefits. Social security pensions are 16.8 million (equal to 80.7% of all the benefits paid). Their basis are the mandatory insurance and contributions paid by employees and employers, who mainly finance these benefits.

Welfare-based benefits (for example social allowance, civilian invalidity and basic income) are about 4 million, equal to 19.3% of the total benefits, and they are not based on mandatory insurance, but they are on State charge.

The pension income distribution, by income brackets, shows that 33.7% of beneficiaries (equal to more than 5.2 million), receiving on average one or more pensions which gross amount is about € 547 per month, absorbs about 12.6% of the total annual expenditure, for more than 37 billion Euro. Among these beneficiaries, the 10.4%, equal to 1.6 million, receives an average pension amount lower than € 500.

About 3.3 million of pensioners, equal to 21.3% of the total, receive monthly pension amounts between € 1,000 and € 1,500 and absorb about 16.8% of the annual pension expenditure (49.4 billion Euro), while an additional 18.5% of beneficiaries (about 2.9 million of pensioners) receive monthly pension amounts between € 1,500 and € 2,000, which is equal to 20.2% of the total expenditure.

About 18.3% (equal to 2.8 million) of beneficiaries receives a benefit gross amount between € 2,000 and € 3,000, absorbing 27.8% of the total gross expenditure, for a total almost equal to 81.8 billion Euro.

Finally, 1,275,284 beneficiaries, equal to 8.2% of the total INPS pensioners, receive a pension of more than € 3,000 per month (an average of gross € 4,019). These benefits cost yearly 66.6 billion Euro and absorb 22.7% of the total expenditure.

The analysis from a gender perspective shows the concentration of women in lower amount brackets and the progressive reduction of women as the pension amount grows (for pension amount of more than € 3,000 only the 28% of beneficiaries are women).

PART II MEDICAL CARE, See Report of Ministry of Health

PART III SICKNESS BENEFIT See Report on Article 76

PART IV UNEMPLOYMENT BENEFIT See Report on Article 76

PART V

Law No. 145 of 30^th December 2018, “State Budget for the 2019 financial year and multi-year budget for the 2019-2021 three-year period”.

The Decree of 15^th November 2019, issued by the Minister of Economy and Finance, in agreement with the Minister of Labour and Social Policies[9], sets out the final pension adjustment for 2019 in 1.1% and the provisional pension adjustment for 2020 in 0.4%.

Benefits	Monthly     amounts     2019 € Final Values	Monthly     amounts     2020 € Provisional Values
Minimum pension (TM)*	513.01	515.07
Additional Income Supplement (**)	136.44	136.44
Minimum pension + Additional Income Supplement	649.45	651.51
Annuity	292.43	293.60
Social Pension	377.44	378.95
Social Allowance	457.99	459.83

* TM: Trattamento Minimo

**Unchanged since 1° January 2008

Please note: the adjustment applied on the gross amount of the pensions existing at December 2019, starting from the minimum pension 2019 (TM) equal to 513.01 euros.

According to Article 1, paragraph 260, of the Budget Law for 2019, n. 145/2018, which introduced a new mechanism of pensions adjustment for the three-year period 2019-2021, the pension adjustment for 2020 is the following:

2020 PENSION ADJUSTMENT

As from	Benefit amount brackets	% of adjustment to be applied in relation to the benefit amount bracket	Adjustment applied	Benefit amounts
				From	to	Guaranteed amount
01/01/2020	Up to 3 times the TM*	100%	0.400%	-	1.539,03
	Guarantee bracket **	Guaranteed amount		1.539,04	1.539,21	1.545,19
	over 3 up to 4 times the TM*	97%	0.388 %	1.539,04	2.052,04
	Guarantee bracket **	Guaranteed amount		2.052,05	2.053,68	2.060,00
	over 4 up to 5 times the TM*	77%	0.308 %	2.052,05	2.565,05
	Guarantee bracket **	Guaranteed amount		2.565,06	2.567,61	2.572,95
	over 5 up to 6 times the TM*	52%	0.208 %	2.565,06	3.078,06
	Guarantee bracket **	Guaranteed amount		3.078,07	3.078,67	3.084,46
	over 6 up to 8 times the TM*	47%	0.188 %	3.078,07	4.104,08
	Guarantee bracket **	Guaranteed amount		4.104,09	4.104,41	4.111,80
	over 8 up to 9 times the TM*	45%	0.180%	4.104,09	4.617,09
	Guarantee bracket **	Guaranteed amount		4.617,10	4.618,01	4.625,40
	over 9 times the TM*	40%	0.160%	4.617,10	-

* TM (Trattamento Minimo): the minimum pension

** The guarantee brackets applied when, after calculating the adjustment with the relevant bracket percentage, the resulting amount is lower than the adjusted amount of the previous bracket.

Differently, for the pensions to which apply the benefits referred to in law no. 206/2004, and subsequent modifications, (victims of terrorism and the slaughters) the adjustment is as follows:

As from	Benefit amount brackets	% of adjustment to be applied in relation to the benefit amount bracket	Adjustment applied	Benefit amounts
				from	To
01/01/ 2020	Up to 3 times the TM*	100 %	1.2500 %	-	1.539,03
	over 3 up to 5 times the TM*	90 %	1.1250 %	1.539,04	2.565,05
	over 5 times the TM*	75 %	0.9375 %	2.565,06	Any

* TM (Trattamento Minimo): the minimum pension

Law references

-   Law No. 335 of 8^th August 1995

-   Law Decree No. 78 of 31^st May 2010, converted with amendments into Law No. 122 of 30^th July 2010

-   Law No. 111 of 15^th July 2011

-   Law No. 148 of 14^th September 2011

-   Law No. 214 of 22^nd December 2011

-   Law No. 92 of 28^th June 2012

-   Law No. 98 of 20^th August 2013

-   Law No.124 of 28^th October 2013

-   Law No.125 of 30^th October 2013

-   Law No. 228 of 24^th December 2013

-   Law No. 147 of 27^th December 2013

-   Law No. 147 of 10^th October 2014

-   Law No. 190 of 23^rd December 2014 (Financial Stability Law)

-   Constitutional Court Sentence No. 70/2015 (appeal of Article 24, paragraph 25 of Law Decree No. 201 of 6^th December 2011, converted with amendments into Article 1, paragraph 1 of Law No. 214 of 22^nd December 2011)

-   Law Decree No. 65 of 21^st May 2015 converted into Law No. 109 of 17^th July 2015

-   Law No. 115 of 29^th July 2015

-   Law No. 208 of 28^th December 2015 (Financial Stability Law)

-   Law No. 76 of 20^th May 2016

-   Law No. 232 of 11^th December 2016, “Provisional State Budget for financial year 2017 and multiannual Budget for the three-year period 2017-2019”

-   Law No. 81, 22/5/2017, "Measures for protection of non-entrepreneurial self-employment and measures to encourage flexibility as to time and place of employment"

-   D.P.C.M. (Decree of Government) n. 87 of 23/5/2017, "Regulation for the implementation of Article 1, paragraphs 199 to 205, of Law No. 232, 11/12/2016, n. regarding the reduction of the contribution requirement for the retirement of "early workers"

-   D.P.C.M. (Decree of Government) n. 88 of 23/5/2017, "Regulation for the implementation of Article 1, paragraphs 179 to 186, of Law 232 of 11/ 2016, social A.P.E."

-   Law No. 205 of 27 December 2017, “Provisional State Budget for financial year2018 and multiannual Budget for the three-year period 2018-2020”

-   D.M. 18 April 2018, “Definition of the procedures for submitting pension applications, for the purposes of applying the benefit referred to in Article 1, paragraphs 147 and 148, of the Law No. 205 of 27 December 2017, and verification of the existence of the requisites by the social security institution”

-   Law No. 145 of 30^th December 2018, “State Budget for the 2019 financial year and multiannual budget for the 2019-2021 three-year period”

-   Law Decree No. 4 of 28^th January 2019, as converted by Law No. 26 of 28^th March 2019, “Urgent provisions on citizenship basic income and citizenship basic pension”

Law Decree No. 101/2019, converted with amendments by Law No. 128 of 2^nd November 2019, containing "Urgent provisions for the protection of work and for the resolution of enterprise crises".

-   Decree of 5^th November 2019 issued by the Ministry of Economy and Finance, in agreement with the Ministry of Labor and Social Policies, containing provisions on the "adjustment of the pension requirements to the increase in life expectancy, starting from 1^st January 2021"

-   Decree of 15^th November 2019, issued by the Minister of Economy and Finance, in agreement with the Minister of Labor and Social Policies on "the value of the percentage change, subject to adjustment, for the calculation of the increase in the pensions adjustment due for 2019, with effect from 1^st January 2020, as well as the final value of the percentage change to be considered for 2018, with effect from 1^st January 2019”

-   Law No. 160 of 27^th December 2019, "State Budget for the 2020 financial year and multiannual budget for the three-year period 2020-2022"

Reduction of the pensions, which amount exceeds 100,000 € annual gross amount

(Art. 1, paragraphs from 261 to 268, Law No. 145 of 30^th December 2018, 2019 State Budget Law).

The State Budget law for 2019[10] set out that, starting from 1^st January 2019, direct pensions on charge of:

·         the Employee Pension Fund (FPLD)

·         the Special Schemes for self-employed workers

·         the Pension Schemes replacing, excluding and integrating the General Mandatory Insurance (AGO)

·         the Special Fund for Self-Employed (Gestione Separata)[11]

whose overall annual gross amounts exceed € 100,000 for 2019, €100,160.00 for 2020 are reduced by applying the following percentage rates:

2019

- 0% up to 100,000.00

- 15% applied on the exceeding quota from € 100,000.01 to €130,000.00;

- 25% applied on the exceeding quota from € 130,000.01 to € 200,000.00;

- 30% applied on the exceeding quota from € 200,000.01 to € 350,000.00;

- 35% applied on the exceeding quota from € 350,000.01 to € 500,000.00;

- 40% applied on the quota exceeding € 500,000.01.

2020

- 0% up to 100,160.00

- 15% applied on the exceeding quota from € 100,160.01 to €130,208.00;

- 25% applied on the exceeding quota from € 130,208.01 to € 200,320.00;

- 30% applied on the exceeding quota from € 200,320.01 to € 350,560.00;

- 35% applied on the exceeding quota from € 350,560.01 to € 500,800.00;

- 40% applied on the quota exceeding € 500,800.01

Determination of the overall pension amounts to be considered for the application of the reduction

The gross annual amounts of all direct pensions, including pension supplements and supplementary pensions, are taken into account for the application of the reduction. Gross amounts of pensions deriving from accumulation and totalization are also taken into account, but only if there are no contributions paid in one or more Professional Funds.[12]

Instead, the amounts deriving from the following pension benefits do not contribute to the determination of the overall pension amounts:

·         disability pensions on charge of the scheme excluding the AGO (General Mandatory Insurance):

-        privileged pensions dependent on a work-related illness;

-        ordinary disability pensions, granted after employment cessation for

o   illness that is not work-related;

o   total and permanent incapacity to perform any profitable work and any tasks;

o   total and permanent incapacity to any work activity;

·         specific disability pensions granted to workers registered with funds replacing the AGO;

·         ordinary disability allowance and invalidity pension;

·         indirect pensions (death of the insured worker) and survivors' pensions (death of the pensioner);

pensions granted to people hurt or killed while they were on duty or victims of terrorism

To what amounts the reduction applies

The reduction applies, in the percentages indicated, to the pension quota with at least one contribution falling under the earning-related calculation system. Therefore, the reduction does not apply to the pension quota falling under the contribution-related calculation system.

The reduction does not apply if there is even a single period paid in the Professional Funds, regardless of the calculation system adopted for the determination of the pension quota on charge of each funds involved in the accumulation or totalization of insurance periods.

Redemption of periods not covered by work insurance

(Article 20, paragraphs 1-5, Legislative Decree no. 4 of 28 January 2019, converted with amendments into Law no. 26 of 28 March 2019)

This option, introduced on an experimental basis for the three-year period 2019-2021, consists in the possibility of paying back uncovered periods until a maximum of five years. This period had not to be subject to contribution obligation neither covered by contribution paid or credited in any of the compulsory social security schemes.

Entitled workers

Article 20, paragraphs from 1 to 5, of the Law Decree 4/2019, established that periods not covered by work insurance can be redeemed by workers registered with:

·         General Compulsory Insurance (AGO) for old-age, disability and survivors’;

·         Funds replacing or excluding the AGO;

·         special schemes for self-employed;

·         Special Fund for self-employed (Gestione separata)[13].

Requirements and qualification for retirement purposes

It is a precondition that workers do not have any contribution credited before 31^st December 1995 (to whom the contribution-related calculation system only applies) and are not retired.

The uncovered periods cannot exceed a total of five years, not necessarily consecutives. These periods will qualify workers for the pension entitlement and affect the pension amount. The periods must be placed after 31^st December 1995 and contained between the years of the first and the last contribution (mandatory, notional, redemption) credited in the insurance schemes mentioned in the “Workers who can redeem” section. In any case, the periods subject to redemption must be prior to 29^th January 2019, date of entry into force of the relevant decree.

The first and last contribution, between which the uncovered periods must be contained, shall not necessarily paid or credited in the same scheme in which one intends to exercise the option of paying back.

It is necessary, instead, that the periods in question are not covered by any contributions (compulsory, notional, voluntary) not only in the scheme in which ones intend to exercise the option of paying back, but also in any other compulsory social security scheme, including Funds for professionals, social security schemes under European Regulations or social security schemes under bilateral agreements.

Finally, only periods not subject to contribution obligation can be paid back. Therefore, this option cannot be exercised to cover working periods, for which contributions have not been paid. For the latter ones, there are the contributory regularization (non-prescribed contributions) or the annuity constitution (prescribed contributions) options. 

The burden measure of the redemption of uncovered periods

Under article 20, paragraphs from 1 to 5, of the Law Decree 4/2019, the paid-back periods must fall under the contribution-related calculation system. Therefore, the burden measure is determinated according the percentage calculation[14] method, by applying the contribution rate in force at the date in which the redemption application has been submitted in the concerned scheme.

The calculation basis of the burden is the remuneration subject to contributions of the twelve months closest to the date of the application. This remuneration is proportionally assigned, by measure and duration, to the paid-back periods.

Application submission and payment

The workers concerned, their survivors or relatives up to the second degree can apply for the redemption of uncovered periods. Private-sector employers can also apply for their workers, by allocating, for this purpose, the amount of production bonuses due to the workers.

The burden can be paid on lump sum or in monthly installments (max. 120) without interests. Each installment shall not be less than 30 euros.

The payment by installments cannot be granted if the contributions to be paid back must be used for the immediate payment of a direct or indirect pension or if they are decisive to admit an application for voluntary payment permission.  Whether these situations occur in the course of already granted payment by installments, the remaining amount shall be paid on lump sum.

A different method to calculate the burden for the redemption of university periods

(Article 20, paragraph 6, Legislative Decree no. 4 of 28 January 2019, converted with amendments into Law no. 26 of 28 March 2019)

Article 20, paragraph 6, of Legislative Decree no. 4/2019 introduced a different and alternative method to calculate the burden for the redemption of university periods referred to in article 2, legislative decree 184/1997. The different method applies to the redemption applications, which concern periods falling under the contribution-related calculation system.

In this case, the burden is calculated by considering the minimum income[15] of artisans and traders, in force in the year of the application submission, and on the basis of the calculation rate of pension benefits in force, in the same period, in the Employees’ Pension Fund (FPLD).

Bilateral Solidarity Funds

(Art. 22, paragraph 3, Legislative Decree no. 4 of 28 January 2019, converted with amendments into Law no. 26 of 28 March 2019)

Article 22, paragraph 3, of the Legislative Decree n. 4/2019 established that the bilateral solidarity funds[16] provide for the payment of the burdens related to redeemable or cumulable periods, placed before the date of access to the funds themselves, which qualify the workers for early retirement and old-age pension.

The burdens corresponding to the paid-back periods are paid to the aforementioned funds by the employers and constitute a specific source of financing with a destination reserved for the purposes referred to in the provision in question. The employers affected by the provision in question will therefore be able to activate all the possible typologies of redemption and cumulation provided by law, qualifying for the early retirement or the old age pension, on the basis of the employees’ social security position. This action allows workers to access the extraordinary income support benefit, granted to those who are entitled to it as part of the facilitation processes to early retire (esodo).

Old-age pension

Old-age pension is social security economic benefit paid, on request, to employees and self-employed, registered for General Mandatory Insurance (AGO), or in other Pension Schemes replacing, excluding and integrating the AGO, as well as in the Special Fund for self-employed as stated by Law No. 335/1995.

Age requirement

As provided by Article 12, paragraphs 12-bis and 12-quater, of the Law Decree No. 78 of 31^st May 2010, converted with amendments by Law 122 of 30^th July 2010, and subsequent modifications and integrations, the age requirements are the following.

Employees registered with the General Compulsory Insurance (AGO) and with Pension Schemes replacing and excluding the AGO and workers registered with the Special Fund for self-employed (Gestione Separata):

Age requirement
from 1st January 2019 to 31st December 2020	67 years
from 1st January 2021 to 31st December 2022	67 years
from 1st January 2023	67 years*

(*) Requirement to be adjusted to the life expectancy, as stated by Article 12 of the Law Decree of 31^st May 2010, No. 78 converted, with modifications, into Law No. 122/2010.

Contribution requirement for old-age pension

1.   Workers with contributions paid before 31^st December 1995:

At least 20 years of contribution (1040 weeks), with any kind of contributions paid or accrued.

2.   Workers with first contribution paid as from 1^st January 1996:

-      At least 20 years of contribution, with the age requirement as reported in the table above, provided that the 2020 pension amount is not lower than € 689.75, namely 1.5 times the social allowance amount of € 459.83 (the so-called threshold amount);

-      Otherwise with at least 5 years of contributions, regardless of the amount of the pension, at the age of 71 in 2020. It is important to point out that the 5 contribution years requirement refers only to the contribution effectively paid (compulsory, voluntary, redemption contribution) excluding every deemed contribution.

Old-age pension for workers employed in the sectors of defense, safety and public aid

(Article 2, Legislative decree no. 165 of 30^th April 1997)

Workers employed in the sectors of defense, safety and public aid, namely personnel of Police Forces and penitentiary administration Department, personnel of Armed Forces including Carabinieri Corps, the national Fire Corps and Guardia di Finanza Corps (a specific corps for financial crimes).

Age and contribution requirement

The age requirement for the old-age pension varies in connection with the workers’ grade, order and qualification. The Decree of 5 November 2019 of the Ministry of Economy and Finance, in agreement with the Ministry of Labor and Social Policies, has not increased the age requirement with respect to that provided for the two-year period 2019/2020.

Defense, safety and public aid sector
from 1st January 2019 to 31st December 2020	between 60 and 65 years[17]

The minimum contribution requirement is 20 years, the same required for all workers.

Old-age pension for workers registered with the Entertainment industry Pension Fund (Fondo Pensione Lavoratori dello Spettacolo-FPLS) and with the Professional Sportsmen Pension Fund (Fondo Pensione Sportivi Professionisti-FPSP)

(D.L.C.P.S. (Legislative Decree Of The Provisional Head Of The State) n. 708/1947 – D.P.R.(Decree of the President of the Republic) 1420/1971 – Legislative Decrees no.166 and 182 of 30^th April 1997 n. 166 e n. 182 – D.P.R. no. 157/2013)

(Decree 5^th November 2019 of the Ministry of Economy and Finance in agreement with the Ministry of Labour and Social Policies)

The Decree of 5^th November 2019 of the Ministry of Economy and Finance in agreement with the Ministry of Labour and Social Policies, does not increase the age requirement for old-age pension until December 2021, also for workers registered with the Entertainment industry Pension Fund (FPLS) and with the Professional Sports’ Pension Fund (FPSP).

Entertainment Industry’s Workers

Given the minimum contribution requirement of 20 years, the same of the generality of workers, the age requirement varies according to the specific task performed by the worker.

Workers with contributions paid before 31^st December 1995

The age requirement for these workers, according to the specific tasks they performed, is reported in the following table:

Requirements 2020
Group	Age Men	Age Women
Dancers	47 yers	47 yers
Singers, Opera singers, Orchestra musicians	62 yers	61 yers
Actors, Anchormen, Directors of orchestra, background acting and fashion	65 yers	64 yers
Entertainment industry craftmen, film directors, producers, technicians, band members*	67 yers	67 yers
For the remaining workers registered with the Employees’ Pension Fund**	67 yers	67 yers

* fixed-term employment contract workers.

** Open-ended employment contract workers.

For Dancers, Singers, Opera singers, Musicians, Actors, Anchormen, Directors of orchestra, background acting and fashion, the working activity subject to contributions, in view of granting the pension benefit paid by the Fund, must refer to work performed in the entertainment field.

Workers with first contribution paid as from 1^st January 1996

in presence of at least 20 years of contributions and of the following age requirement:

Period	Age Men	Age Women
from 1st January 2019 to 31st December 2020	67 years	67 years

provided that the 2020 pension amount is not lower than € 689.75, namely 1.5 times the social allowance amount of € 459.83 (the so-called threshold amount);

Otherwise, with at least 5 years of contributions, regardless of the amount of the pension, at the age of 71 in 2020.

For dancers, in the contribution-related system, the age requirement for old-age pension is the same required by the mixed system (the system related to workers with contributions paid before 31^st December 1995), that is 47 years of age both for men and women and 20 years of contributions, of which at least 2.400 daily contributions must have been paid for the specific dancing activity.

Professional sportsmen

(Law no. 366 of 14^th June 1973 – Law no.91/1981 – Legislative Decree no.166/1997 – D.P.R. no. 157/2013)

Professional sportsmen are “athletes, coaches, technical-sports directors and athletic trainers, who carry out sports activities for consideration, on an ongoing basis, within the disciplines regulated by the C.O.N.I[18]. They are qualified as professionals by the national sports federations, according to the rules issued by the federations themselves, in compliance with the directives set out by C.O.N.I. for the distinction between amateur and professional activity”[19].

Workers with contributions paid before 31^st December 1995

20 years of contributions, of which 5,200 daily contributions must have been paid for the specific activity of professional sportsmen, and the following age requirement:

Year	Age men	Age women
2020	54 years	53 years

Workers with first contribution paid as from 1^st January 1996

At least 20 years of contributions and 67 years of age both for men and women provided that the 2020 pension amount is not lower than € 689.75, namely 1.5 times the social allowance amount of € 459.83 (the so-called threshold amount).

Otherwise, with at least 5 years of contributions, regardless of the amount of the pension, at the age of 71 in 2020.

Article 1, paragraph 374, letter c) of the Law no. 205/2017, which amends article 3, paragraph 8, of the Legislative Decree no. 166/1997, sets out that workers registered with the Professional Sportsmen pension fund (FPSP), who are insured starting from 1^st January 1996, given the specific nature of their activity, can add one year to their age every four years of working activity performed as professional sportsmen, to qualify for the old-age benefits under the contribution-related system. This is possible up to a maximum of five years.

Pensions under totalization scheme

(Legislative Decree no. 42/2006)

Old-age pension
Year	Age requirement
Up to 31st December 2022	66 years
From 1st January 2023	66 years*

* Requirement to be adjusted to the life expectancy, as stated by Article 12 of the Law Decree of 31st May 2010, No. 78 converted, with modifications, into Law No. 122/2010.

Workers can benefit from the old-age pension under totalisation scheme, after 18 months since they qualified (so called “finestra mobile” [20], that is a deferred retirement).

Early retirement benefit

Early retirement benefit is social security economic benefit paid, on request, to employees and self-employed workers, registered with General Compulsory Insurance (AGO), or in other Pension Schemes replacing, excluding and integrating the AGO, as well as with the special fund for self-employed, as stated by Law No. 335/1995. Work cessation is required for employees but not for self-employed workers.

Waiver of life expectancy increase to the contribution requirement and starting date modification

(Article 15, Law Decree No. 4 of 28^th January 2019)

Article 15 of Legislative Decree No. 4 of 28^th January 2019[21], replacing paragraph 10 of Article 24 of Legislative Decree No. 201 of 6^th December 2011[22], set out the waiver of life expectancy increase to the contribution requirement for early retirement pension until 31^st December 2026. The same article introduced, as well, new provision on the early retirement pension starting dates. According to these new provisions, workers are entitled to retire with 3 months deferral, after satisfying the contribution requirement (so called finestra).

Workers insured before 31^st December 1995

Workers with insurance contribution before 31^st December of 1995, are entitled to early retirement pension if they satisfy the following contribution qualifying condition:

Workers insured starting from 1^st January 1996

a)   according to the contribution requirement only:

To satisfy the contribution qualifying condition, any kind of paid or accrued contribution can be considered, except for voluntary contribution. 1.5 multiplies working periods performed before the 18 years of age.

Or

b)   according to the age and contribution requirement:

By satisfying an age requirement of 64 years (to be adjusted to life expectancy increase from 1^st January 2023), provided that at least 20 years of contribution have been effectively paid* and the monthly amount of the first pension payment is not lower, for 2020, than € 1287.52 (2.8 times the monthly amount of the social allowance € 459.83 for 2020).

*without considering periods of deemed contribution

To be entitled to the benefit, employed worker must cease every employment activity. However, it is not required the self-employed activity cessation.

Early retirement benefit for workers employed in the sectors of defense, safety and public aid

(Art. 6, Legilslative Decree no. 165 of 30^th April 1997)

Age and contribution requirements

1.           Upon reaching, in 2020, 41 years of contribution[23], regardless of the age;

2.           upon reaching at least 35 years of contribution with a minimum age of 58 years in 2020;

3.           upon reaching the maximum period of contribution (corresponding at the rate of 80%) with at least 54 years of age in 2020. This option has been overcome by the introduction of the contribution-related calculation system also for contributions paid as from 2012, unless the above cited rate of 80% has been already reached on 31^st December of 2011.

For personnel entitled to early retirement benefit according to paragraphs 2) and 3), 12 months of deferral, with respect of when they have reached the pension qualifying conditions, will continue to apply. If worker qualify with qualifying conditions according to paragraph 1), the deferral will be of 15 months.

Early retirement benefit for workers registered with the Entertainment industry Pension Fund (Fondo Pensione Lavoratori dello Spettacolo-FPLS) and with the Professional Sportsmen Pension Fund (Fondo Pensione Sportivi Professionisti-FPSP)

Workers insured before 31^st December 1995

For dancers and professional sportsmen registered with their specific funds before 31^st December 1995, there is no early retirement benefit.

The other groups of these workers, registered with their specific funds both before 31^st December 1995 and from 1^st January 1996, are entitled to the early retirement benefit upon having satisfied the qualifying conditions provided for the generality of employees.

Workers insured from 1^st January 1996

For Dancers, Singers, Opera singers, Musicians, Actors, Anchormen, Directors of orchestra, background acting and fashion, the working activity subject to contributions, in view of granting the early retirement benefit paid by the Fund, must refer to work performed in the entertainment field.

For the early retirement benefit of workers registered with Professional Sportsmen pension fund (FPSP), applies Article 1, paragraph 374, letter c), of law no. 205/2017, that amends article 3, paragraph 8, of Legislative Decree no. 166/1997 (see old-age pension section).

Seniority pension under totalization scheme

(Legislative Decree no. 42/2006)

Seniority pension
Year	Contribution requirement
untill 31st December 2022	41 year
from 1st January 2023	41 year*

* Requirement to be adjusted to the life expectancy, as stated by Article 12 of the Law Decree of 31st May 2010, No. 78 converted, with modifications, into Law No. 122/2010.

Workers can benefit from the seniority pension under totalisation scheme, after 18 months since they qualified (so called “finestra mobile” [24], that is a deferred retirement) to which, as from 2014, 3 further months shall be added according to article 18, paragraph 22-ter of Decree Law no. 98/2011, converted by law 111/2011

Early retirement benefit for special categories of workers

Early insured workers - “lavoratori precoci”

Article 1, paragraphs 199-205, Budget Law for 2017, No. 232/2016)

(Article 1, paragraph 162 let. f), g) e i), 163, 164, 165 (Annex. 1) Budget Law No. 205/2017 for2018) to modify Articles 1, paragraph 199, letters b), d) - 205, of Law No. 232 of 2016 (Budget Law for 2017).

(Article 17 Law Decree No. 4 of 28^th January 2019)

According to the article 1, paragraph 199, Law No. 232 of 11^th December 2016, “early workers” are workers who have at least one year of effectively paid contribution before 19 years of age. These workers are entitled to the early retirement pension with a contribution requirement of 41 years (from 1^st January 2019), regardless of the age.

Article 17 of the Law Decree No. 4 of 28^th January 2019[25] stated that this contribution requirement shall not be adjusted according to life expectancy increase up to 31^st December 2026.

* Requirement to be adjusted to the life expectancy, as stated by Article 12 of the Law Decree of 31st May 2010, No. 78 converted, with modifications, into Law No. 122/2010.

Beneficiaries

Workers registered with the General Compulsory Insurance Scheme (AGO) and with Pension Fund Schemes replacing and excluding the AGO, with accrued contribution at 31^st December 1995.

Requirements

-   41 years of accrued contribution both for men and women, to be adjusted to life expectancy increase as from 1^st January 2027;

-   At least one year of effectively paid contribution before the age of 19 and in presence of one of the following conditions, stated by the Law:

 

a)   being unemployed[26]. Workers must have stopped receiving social buffers since at least three months;

b)   being a caregiver at the time of the application and since at least 6 months, of the spouse or for a cohabitant 1^st degree relative suffering from severe disability[27]. As from 1^st January 2018, caregiving can be extended to a cohabitant 2^nd degree relative, or assimilated person, provided that his/her parents or spouse are 70 years old or they too suffer from disabling diseases or they are dead, or they are missing;

c)   having a civilian disability[28] percentage equal to or more than 74%;

d)   having been employed since at least 7 years in the last 10 on an ongoing basis, or since at least 6 years in the last 7, in risky or difficult activities among those specifically indicated by law; from 1^st January 2018 other activities defined risky or difficult by the law have been added. (From 11 to 15 activities, reported in the annex B to the Budget Law 2018);

e)   having been employed in arduous tasks[29] (i.e.: line chain operators, night workers, drivers of vehicles for collective transport with a total capacity of no less than nine seats).

Early retirement benefit for early workers cannot be combined with income deriving from employment or self-employment activity, performed both in Italy and abroad, for the period between this benefit starting date and the date in which, the contribution requirement of the early retirement benefit provided for the generality of workers, will be satisfied.

Starting date

As from 1^st January 2019, workers who satisfied the contribution requirement can retire:

-   with 3 months deferral, after satisfying the contribution requirement (c.d. finestra) and according to the provisions provided for the scheme which pays the benefit;

-  if the contribution requirement has been satisfied by combining insurance periods as per Law No. 228/2012, on the first day of the month following the above-cited 3 months deferral (so called finestra).

Early retirement benefit for workers employed in arduous tasks[30]

(Article 1, paragraphs 1, 2, and 3 of Legislative Decree No. 67 of 21^st of April of 2011)

Public and private sector workers, who have been employed in arduous tasks (provided by law) for at least 7 years in the last 10 or for at least half of their working life, can early retire, benefiting from requirements that are more favorable.

Requirements

A minimum quorum of 97.6, given by the sum of the age and contribution requirements, provided that at least 35 years of contributions and an age requirement not lower than 61 years and 7 months have been satisfied.  Quorums, four in total (97.6 – 98.6 – 99.6 – 100.6), differ according to the typology of the arduous task performed and to the fund, which pays the pension (employees’ pension fund, special schemes for self-employed).

Employment cessation is required.

For these workers, the life expectancy adjustments do not apply until 31^st December 2026.

Early retirement benefit only for women (so called “Opzione donna”)

(Article 16 Law Decree No. 4 of 28^th January 2019)

(Aricle. 1, paragraph 476, Law no. 160 of 27^th December 2019)

Working women, who, within 31^st December 2018, have satisfied a contribution requirement of at least 35 years and a minimum age requirement of 58 years if employees and 59 years if self-employed, can early retire but their pension amount will be calculated by applying the contribution-related calculation system, according to Legislative Decree no. 180 of 30^th April 1997.

For these workers, the life expectancy adjustments do not apply to age requirement.

Starting date

The pension starting date varies in connection with the worker’s category:

a)  If employee, with 12 months deferral from when the provided requirements have been fulfilled;

b) If self-employed, with 18 months deferral from when the provided requirements have been fulfilled.

Special typologies of early retirement benefits

APE Sociale - A bridge measure to the old-age pension

(Article 1, paragraphs 179-186, Law n 232/2016)

(Article 18, Law Decree No. 4/2019)

(Article 1, paragraph 473, law no. 160 of 27^th December 2019)

It is a measure, introduced on an experimental basis from 1^st May 2017, that allows specific categories of workers to anticipate the old age pension upon ascertainment of certain conditions. It is on State charge and, therefore, subject to spending limits.

Article. 1, paragraph 473, Law of 27 December 2019, n. 160 (Budget Law 2020), extended the measure until 31^st December 2020 and, consequently, increased the related budget.

Considering that this measure can be benefited without interruption with the past, also workers, who have fulfilled the requirements[31] in the previous years without submitting the application, can apply for verifying the entitlement to A.Pe. Sociale as well as workers, whose benefit has been withdrawn[32], can resubmit the application thereof.

Beneficiaries

Employed and self-employed registered with the General Compulsory Insurance Scheme (AGO) and with schemes excluding or replacing the AGO and self-employed workers registered with Special Fund for Self-employed under Article 2, paragraph 26, Law No. 335, 8^th August 1995.

Age and contribution requirements:

- 63 years of age and at least 30 years of contribution:

o   being unemployed and having finished to receive the unemployment benefit since at least for three months; as from 1^st January 2018, also workers, whose unemployment benefit is a consequence of a fixed-term contract employment termination, are included if they had worked at least for 18 months during the 36 months preceding the contract termination, or

o   having a civilian invalidity percentage equal to or more than 74%, or,

o   being a caregiver, at the time of the application and since at least 6 months, of the spouse or of a cohabitant 1^st degree relative suffering from severe disability. As from 1^st January 2018, caregiving can be extended to a cohabitant 2^nd degree relative, or assimilated person, provided that his/her parents or spouse are 70 years old, or also they suffer from disabling diseases, or they are dead, or they are missing.

 

- 63 years of age and at least 36 years of contributions:

o   having been employed since at least 7 years in the last 10 on an ongoing basis, or since at least 6 years in the last 7, in risky or difficult activities[33]among those specifically indicated by law; from 1^st January 2018 other activities defined risky or difficult by the law have been added. (From 11 to 15 activities, reported in the annex B to the Budget Law 2018)

 

Women with children have a reduction of the minimum contribution requirement (30/36 years) equal to 12 months for each child up to a maximum period of 24 months.

The beneficiary of APE Sociale must reside in Italy and cease employment, self-employed and para-subordinate activity both in Italy and abroad.

Benefit amount

The benefit is equal to the monthly pension amount calculated at the time of the retirement. However, the amount cannot exceed € 1,500 per month.

The benefit is paid for 12 months per year until the age requirement for old-age pension will be satisfied.

If all the requirements are satisfied, the benefit starts on the first day of the month following the benefit application, upon cessation of employment, self-employed and para-subordinate activity both in Italy and abroad.

The benefit is inconsistent with social safety-net benefits related to involuntary unemployment, lump-sum for termination of trading activity, and it is not granted to direct pension beneficiaries, both in Italy and abroad.

APE Volontario - A bank loan guaranteed by the future pension

(Article 1, paragraph 166 and following, Budget Law for 2017 and Article 1, paragraph 162, Budget Law for 2018)

Please note: The Budget law for 2020 has no longer extended this measure. Therefore, it continues to be granted only to those workers who have met the necessary requirements by 31st December 2019.

It is a loan paid in 12 monthly installments per year by the bank; it is guaranteed by the old-age pension amount that the beneficiary will receive upon achieving the pension entitlement. It is granted, on an experimental basis, from 1^st May 2017 to 31^st December 2019.

The loan is reimbursed in 240 instalments over a period of 20 years through a withholding that INPS applies on the monthly pension amount. The loan repayment starts from the first payment of future pension. Upon completion of reimbursing, the pension amount will be paid in full. It is also possible a partial or total repayment of the loan in advance[34].

The loan is also insured against the risk of death, therefore, in the event of beneficiary's death before the repayment, the insurance company pays the outstanding debt to the bank so that, the survivors’ pension if due, will be paid in full.

APE Volontario is paid for a minimum period of six months and up to the achieving of the pension entitlement.

Beneficiaries

Employed workers and self-employed registered with the Compulsory General Insurance Scheme (AGO) and with schemes replacing and excluding the AGO and with the Special Fund for self-employed, as per to Article 2, par. 26, of the Law No. 335 of 8/8/1995.

Professionals registered with professional funds are excluded.

Personal and contribution requirements

a)   Minimum age of 63;

b)   Not less than 20 years of contributions;

c)   Employed workers insured since 1^st January 1996, a pension amount not less than 1.5 times the amount of the social allowance pursuant to Article 3, paragraph 6, Law No. 335/1995, on date of application for entitlement Ape certification;

d)   amount of pension, net of the repayment corresponding to Ape, equal to or greater than 1.4 times the minimum pension provided for in the Compulsory General Insurance Scheme, on the date of the application for entitlement Ape certification;

e)   not being a direct pension beneficiary or invalidity allowance beneficiary.

Amount of pension

The minimum monthly amount that can be requested is € 150.00 and the maximum amount can vary according to the term of the loan and is as following:

·         75% of the net monthly amount of the pension, if the term of Ape lasts more than 36 months;

·         80% of the net monthly amount of the pension, if the term of Ape lasts more than 24, equal to or less than 36 months;

·         85% of the net monthly amount of the pension, if the term of the loan lasts from between 12 and 24 months

·         90% of the monthly amount of the pension, if the term of Ape lasts less than 12 months

Cessation of the working activity is not required.

“Quota 100” pension

(Article 14, Law Decree No. 4 of 28^th January 2019)

It is an early retirement, as per Article 14 Law Decree No. 4 of 28^th January 2019, converted with amendments by law no. 26 of 28^th March 2019, introduced on an experimental basis for the three years period 2019-2021.

Beneficiaries

Workers registered with:

-          General Mandatory Insurance (AGO):

o   Pension Fund for Employees (FLPD)

o   Special schemes for artisans, traders, farmers, settlers and sharecroppers

-          Funds excluding the AGO;

-          Funds replacing the AGO;

-          Special Fund for Self-employed.

Armed Forces, Police Forces, Financial Police forces (Guardia di Finanza) and Fire Brigade members (Vigili del Fuoco) as well as workers registered with other funds different from the above-cited ones (such as, Clergymen, Journalists, Professionals, etc.) cannot benefit from “Quota 100” pension.

Age and contribution requirements

To be entitled to “Quota 100” pension, workers shall satisfy the following age and contribution requirements in the three-year period 2019 – 2021 and in the two-year period 2021 - 2022:

­  62 years of age, to which the life expectancy adjustment doesn’t apply;

­  38 years of contributions.

To satisfy the contribution qualifying condition, all contributions, also deemed contributions, can be considered to fulfil the requirement of 38 years, provided that at least 35 of them are effectively paid, namely net of periods of sickness and unemployment.

The contribution requirement can be fulfilled also by cumulating contributions paid in two or more schemes; however, contributions, which have been already given rise to a pension, can no longer be considered.

Termination of the employment relationship is needed to retire with “Quota 100” pension.

The pension is inconsistent with income deriving from any working activity also performed abroad, excluding income deriving from casual work within the limit of yearly gross € 5,000.

 

Inconsistency applies in the period between the "Quota 100" pension starting date and the date in which the age requirement for old-age pension, provided for the scheme, which is paying the pension and adjusted according to life expectancy, will be fulfilled.

Periods of work performed abroad - How they are considered for the purposes of the “quota 100” pension

The contribution requirement for the "quota 100" pension can also be fulfilled with the non-overlapping foreign contribution accrued in countries to which the European social security Regulations apply, or in non-EU countries linked to Italy by bilateral security agreements social. In both cases, international totalization applies only if the minimum contribution qualifying condition under European Regulations (52 weeks) or individual bilateral agreement is satisfied.

This also applies to contribution period cumulation as per paragraph 2, article 14 of Law Decree no. 4/2019, provided that at least one of the funds in which workers paid contributions is included in the field of application of the European Regulations or bilateral agreements. In case of contributions paid in more funds, periods of work abroad are considered in the fund which applies the more favorable pension calculation, provided that the sum of the contribution periods is not less than 52 weeks, under European Regulations, or less than the minimum period required by the individual bilateral agreement.

Periods of working abroad can be taken into account also if they have been already considered for a foreign pension; but they cannot be taken into account anymore, if the pension, for which they have been already considered, is an Italian pension under international totalization.

Therefore, a foreign pension beneficiary can be entitled to “Quota 100” pension while a beneficiary of Italian pension under international totalization cannot access it.

“Quota 100” pension starting date

There are different starting dates for employees according to the employers’ typology:

·         Employees working for private employers;

·         Employees working for public administration[35].

For self-employed workers the starting dates are equal to those applied for employees working for private employers.

For the workers of the education sector and the High-level artistic, musical and coreutic training sector (AFAM), the pension starting date is, respectively, 1st September and 1st November of the year in which they meet the requirements.

Starting date of “Quota 100” pension Year 2020
Employees working for private employers Self-employed workers	Employees of public administrations
After 3 months from the requirement fulfillment (deferred retirement, so called “finestra”)	After 6 months from the requirement fulfillment (deferred retirement, so called “finestra”)

The pension calculation systems are:

1.   the earning-related calculation system

2.   the contribution-related calculation system

1. According to earning-related calculation system, the pension amount will depend on the medium wages earned during the last working years and the insured worker’s insurance history regardless of both the retiree’s age and the amount of paid contributions. This calculation system applies to a part of the contribution periods only, namely:

-   periods up to 31/12/1995, for workers having on that date less than 18 years of contributions (Dini Reform, Law No. 335/1995);

-   periods up to 31/12/2011, for workers having on that date at least 18 years, or more, of contributions (Monti-Fornero Reform, Law Decree no. 201/2011, converted by Law No. 214/2011).

The contribution-related calculation system applies to any other periods; therefore, for workers who fall within the above-described situations applies a mixed calculation system (earning-related+contribution-related).

The earning-related calculation system formula is the following:

2. According to contribution-related calculation system, the pension amount will be calculated on the total amount of paid contributions (reviewed yearly on the basis of the five-year average GDP growth rate) timed by an actuarial coefficient of transformation which varies according to age at retirement. Therefore, the more you pay, the more you draw; the earlier you retire, the lower the benefit you are granted.

The contribution-related calculation system formula is the following:

The Actuarial Coefficients of Transformation are updated every three years, according to changes in life expectancy.

                

Actuarial Transformation Coefficients – 2019/2021

 

The following table shows the calculation systems applied to workers according to the Dini and Monti-Fornero Reforms.

Pension calculation systems
Workers with at least 18 years, or more, of contributions at 31st December 1995	Mixed system: earning-related calculation system for periods up to 31st December 2011, contribution-related calculation system as from 1st January 2012.
Workers with less than 18 years of contributions at 31st December 1995.	earning-related calculation system for periods up to 31st December 1995, contribution-related calculation system as from 1st January 1996.
Workers with less than 18 years of contributions at 31st December 1995 but with at least 15 years of contributions, of which at least 5 in the contribution-related system.	Option for contribution-related calculation system: these workers can opt for the contribution-related calculation system only.
Workers hired as from 1st January 1996	Contribution-related calculation system only.

Pensions under bilateral agreement on social security

Italy concluded bilateral agreements on social security with the following non-EU foreign states.

Argentina	Republic of Cape Verde
Australia	Republic of Korea
Brazil	Republic of San Marino
Canada e Quebec	Holy See
Israel	United States of America
Channel Islands and Isle of Man	Tunisia
Mexico (only for pension payments in Italy)	Turkey
Former Jugoslavia states[36]	Uruguay
Principality of Monaco	Venezuela

In the reference period, as far as bilateral agreements on social security are concerned, following the last round of negotiation between the Italian and Serbian liaison Bodies’ delegations, which was held in Belgrade in November 2018, bilingual liaison forms for pension application under the bilateral agreement between Italy and the former Federal People's Republic of Yugoslavia, which also applies to the Serbian Republic, have been finalized jointly by the two Parties. After testing, the agreed forms have been published and now they are available on the INPS IT claim processing platform (CIWEB). The offices received, via specific message, the operating instructions on the new method of exchanging forms between the competent institutions, which started from 1st April 2020.

The above, with a view to enhance the speed and accuracy of the information exchanged and the exercise of the right to opt as provided for under the above-cited Agreement.

Following negotiations with the representatives of the Rome Embassy of the Moldavian Republic, an Agreement between Italy and the Moldavian Republic in matters of transmission of pension claims and pension payment abroad between the Parties’ competent institutions was finalized and the ratification procedure is currently ongoing.

Having regard to the bilateral Agreement between Italy and Turkey, which had entered into force as of August 2015, the relevant Administrative Arrangement was agreed upon during the final round of negotiation, held in Rome in January 2019. Bilingual liaison forms concerning the various social security branches (retirement benefits, income support benefits, family benefits and applicable legislation falling under the material scope of the Agreement) are currently being jointly finalized by the two Parties in view of proceeding to the ratification process.

During the final round of negotiations with the Japanese delegation, held in Rome in March 2019, the two Parties reached an agreement concerning both the text of the Administrative Arrangement and the bilingual liaison forms. Once the Administrative Arrangement is signed, the two Parties will proceed to the exchange of the ratification instruments in view of the entry into force of the Agreement.

In view of resuming negotiations to finalize the bilateral Agreement between Italy and Macedonia the update of the relevant impact analysis, in terms of the financial burden involved, was carried out also in view of determining whether possible savings might be determined as a consequence of the implementation of the new Agreement compared with the impact of the Agreement with the former Yugoslavian Republic that still applies to Macedonia.

The Agreement on UK’s withdrawal[37] from the EU, entered into force following the Brexit, states that the EU Regulations continue to apply until 31st December 2020 in the matters of pensions, family allowances, unemployment benefits, sickness benefits, maternity/paternity benefits, posted workers, recovery of contributions and of undue benefits, both pension benefits and not, and modalities of exchanging information between Institutions.

Nothing to report

Nothing to report

STATISTICAL DATA

ART. 27 OF THE CODE

A.          It has been referred to subparagraph (a) of Art. 27

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

C.           Pursuant to Art.74 - Title I

D.          Does not occur

ART. 28 OF THE CODE

A.  Pursuant to Art.65 – Title I

A.  For the calculation rules, see the section on the old-age pension.

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 in the note at the end of the Report.

C. Standard employee Yearly wage for the year 2019                 € 34,179.27

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

2. Does not occur

A.     Pursuant to Art.65 – Title III

Standard employee: level 3 metal worker, next to retirement, married without children.

Table 1                                                                                     

FAMILY ALLOWANCE FOR FAMILY WITHOUT CHILDREN                                 monthly amount related to income and to the number of members in the family* (where none of the members is disabled)
Reference household yearly income for the period starting from 1st July 2019
Yearly family income €			Allowance amount based on the number of members in the family - €
			2	3	4	5	6	7 Or more
Up to	-	13,894.19	46.48	82.63	118.79	154.94	191.09	227.24
13,894.20	-	17,366.98	36.15	72.30	103.29	144.61	185.92	216.91
17,366.99	-	20,839.76	25.82	56.81	87.80	129.11	180.76	206.58
20,839.77	-	24,311.20	10.33	41.32	72.30	113.62	170.43	196.25
24,311.21	-	27,783.30	-	25.82	56.81	103.29	165.27	185.92
27,783.31	-	31,256.75	-	10.33	41.32	87.80	154.94	175.60
31,256.76	-	34,728.87	-	-	25.82	61.97	139.44	160.10
34,728.88	-	38,200.29	-	-	10.33	36.15	123.95	144.61
38,200.30	-	41,671.71	-	-	-	10.33	108.46	134.28
41,671.72	-	45,144.50	-	-	-	-	51.65	118.79
45,144.51	-	48,617.30	-	-	-	-	-	51.65

Reference household yearly income for the period starting from 1st July 2020
Yearly family income €			Allowance amount based on the number of members in the family - €
			2	3	4	5	6	7 Or more
Up to		13.963,66	46,48	82,63	118,79	154,94	191,09	227,24
13.963,67	-	17.453,81	36,15	72,30	103,29	144,61	185,92	216,91
17.453,82	-	20.943,96	25,82	56,81	87,80	129,11	180,76	206,58
20.943,97	-	24.432,76	10,33	41,32	72,30	113,62	170,43	196,25
24.432,77	-	27.922,22	-	25,82	56,81	103,29	165,27	185,92
27.922,23	-	31.413,03	-	10,33	41,32	87,80	154,94	175,60
31.413,04	-	34.902,51	-	-	25,82	61,97	139,44	160,10
34.902,52	-	38.391,29	-	-	10,33	36,15	123,95	144,61
38.391,30	-	41.880,07	-	-	-	10,33	108,46	134,28
41.880,08	-	45.370,22	-	-	-	-	51,65	118,79
45.370,23	-	48.860,39	-	-	-	-	-	51,65

(*)Including the married couple only or the married couple + one brother, sister or nephew/niece households with children under 18 years of age

A.        Pursuant to Art.65 – Title V

Data for women workers are equated with those of male workers.

B.      Does not occur

C.       Pursuant to Art.65 – Title VI

PART VI – EMPLOYMENT INJURY BENEFITS – see INAIL report.

PART VII

Allowance for family unit (ANF - assegno per il nucleo familiare)

(Article 2, L.D.13/3/1988, n. 69, turned into Law No. 153/1988 with modifications)

This allowance is an economic support paid to the family unit of employees, agricultural sector employees, domestic workers, “atypical” workers registered with the Special Fund for Self-employed, pensioners and beneficiaries of temporary social security benefits related to the employment relationship.

Italian, EU country and third country’s workers[40] (these last ones, coming both from countries having subscribed bilateral agreement with Italy and not), residing in Italy, are entitled to the allowance for family unit consisting of the applicant and her/his:

-   spouse/civil union partner, not divorced or legally separated or dissolved from civil partnership;

-   children or equivalent minors and adults with disability to be gainfully employed;

-   children or their equivalents between 18 and 21 years of age who are students or are apprentices (only in case of large families);

-   Brothers, sisters and grandchildren who had lost both parents and are not beneficiaries of a survivors’ pension.

The family unit income shall not exceed the ceilings based on the consumer price index, calculated by ISTAT (Italian Institute of Statistics). INPS, with its circular, publishes these income ceilings every year.

Family allowances (AF)

(Decree of the President of the Republic no. 797 of 30^th May 1955)

Italian, EU country and third country’s workers, working in Italian territory, who are farmers, sharecroppers, settlers, and pensioners of special schemes for self-employed workers (craftspeople, traders, farmers, sharecroppers and yeoman farmers), are entitled to family allowances if the total income of their family unit not exceeds the ceilings stated annually by law.

The family unit of reference consists of dependent members (children and their equivalent; cohabitants brothers, sisters and grandchildren who are minors or unable to work; high school students or apprentices up to 21 years of age; university students up to 26 years of age), whose personal monthly income not exceeds the ceilings stated by law and annually revised.

Allowance amounts:

-      € 8.18 per month to farmers, sharecroppers and settlers for children and their equivalent;

-      € 10.21 per month to special schemes’ pensioners, self-employed workers and yeoman farmers for spouse, children and their equivalent;

-      € 1.21 per month to yeoman farmers for parents and their equivalent.

Monthly income ceilings

For the purposes of family allowance, the 2020 monthly income ceilings necessary to be entitled to the benefit are the following:

€ 725.39 for spouse, single parent, each child or equivalent;

€ 1,269.43 for two parents and equivalents.

Family allowance for family unit consisting of at least three minor children granted by Municipalities

(Article 65, Law No. 448/1998)

It is an assistance benefit for family units with at least three minor children paid to Italian, EU country’s citizens residing in Italy and to third Country’s citizens who are long-term residents in Italy.

Requirements:

-      Family unit consisting of at least one parent and three children under 18 years, including spouse’s children and minors in pre-adoption foster care. Minors must be part of the applicant’s same family unit and must not be in foster care to third parties;

-      Family unit income and assets must not exceed the ISEE (Equivalent economic status indicator) value, reassessed on an annual basis.

Benefit Amount:

The benefit amount for 2020, in the full measure, is equal to annual 1,886.82 € (145.14 € for 13 months) if the ISEE indicator is equal to or less than 8,788.99 €.

The benefit can be combined with any other family economic support and it is not considered an income for tax and social security purposes.

The Municipality, who, upon application, granted the benefit, is responsible for controlling and, where necessary, for withdrawing the benefit.

INPS provides for the payment every six months (within the 15 July, for the period January-June; within 15 January of the next year, for the period July-December).

“Bonus asilo nido” - An economic aid to families for both public and private kindergarten and, upon specific conditions, for forms of support at home as an alternative to kindergarten.

(Article 1, paragraph 355, 2017 Budget Law, No. 232 of 11^th December 2016) - (D.P.C.M. of 17^th February, 2017) - (Article.1, paragraph488, 2019 Budget Law, No. 145 of 30 December 2018)

(Article 1, paragraph 343, 2020 Budget Law, no. 160 of 27 December 2019)

Article 1 of the 2017 Budget Law^[41] provided families for an annual economic support of € 1,000.00, for children born as from 1^st January 2016, to help them paying the kindergarten attendance fees both in public and private authorized structures[42]. This allowance was also granted for “forms of support at home” to families with children (with less than 3 years of age) suffering from serious and chronicle illnesses.  

Article.1, paragraph 488, of the Budget Law for 2019 (Law No. 145/2018) increased the economic support to € 1,500.00, on annual basis, for the years 2019, 2020 and 2021.

Art 1, paragraph 343 of the 2020 Budget Law, further increased the amount of the economic aid up to a maximum of € 3,000, if the nuclear family with minors of three years, has a valid ISEE indicator not exceeding € 25,000.

The economic aid can be granted up to a maximum of € 2,500, if the nuclear family has a valid lSEE indicator between € 25,001 and € 40,000. Over € 40,000, or in the absence of ISEE, the minimum amount of € 1,500 will be granted.

To benefit of the amount increase up to € 3,000, the requesting parent must be in the same nuclear family as the minor for whom the benefit is requested. Otherwise, the maximum amount of € 1,500 continues to apply.

Expenses for educational supplementary services of the nursery (e.g. playrooms, play areas, baby spaces ground, pre-school etc.), are not reimbursed.

INPS directly pays the benefit, upon parent’s application, after specific controls.

Requirements:

Parents, also adoptive parents, residing in Italy, having:

-      Italian or EU country’s citizenship (third country’s citizens having political refugee status and subsidiary protection[43] are equivalent to Italian citizens);

-      Third country’s citizens with a EU residence permit for long-term residents[44]

-      Third country’s citizens having:

a.   The "permit to stay” for relatives of European Union’s citizens (Italian or European) who are not nationals of a Member State, or

b.   The "permanent residence card" for relatives of European Union’s citizens (Italian or European) who are not nationals of a Member State^[45].

INPS verifies the residence permits by accessing the Ministry of the Interior databases and the other public administrations ones.

Benefit Amount

Starting from 2020, as already mentioned, the maximum amount has increased to € 3,000 on an annual basis and is determined on the basis of the ISEE indicator.

The amount is paid monthly, relating the maximum annual amount (determined on the ISEE) to 11 months. The beneficiary parent must document each monthly kindergarten fee.

The monthly amount paid by INPS, cannot exceed the amount paid for the single fee.

This benefit cannot be combined with the benefit payments pursuant to Article 1, paragraphs 356 and 357 of the 2017 Budget Law (so-called Bonus infanzia).

Moreover, this benefit cannot be combined with the deduction provided for by Article 2, paragraph 6, of Law No. 203 of December 22, 2008 (tax deductions for kindergarten attendance).

For forms of support at home, INPS pays the € 1,500.00 benefit, in a single solution, to the applicant parent cohabiting with the child, upon presentation of a certificate issued by the pediatrician attesting, “for the entire year of reference, that the child cannot attend nurseries because suffering from serious and chronicle illness”.

This benefit, for both nursery attendance and forms of support at one’s own house, is subject to the spending limits set out by law[46]and in order of online application submission.

Nothing to report

Nothing to report

STATISTICAL DATA

     ART. 41 OF THE CODE

A.  It has been referred to subparagraph (a) of Art. 41

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

C.  Pursuant to Art.74 - Title I

ART. 42 OF THE CODE

It has been referred to sub-paragraph (a) of Art. 42

The family unit allowance for employees having household without children are reported in the following Table 1

Table 1                                                                                     

FAMILY ALLOWANCE FOR FAMILY WITHOUT CHILDREN                                 Total monthly amount related to income and to the number of members in the family* (where none of the members is disabled)
Reference household yearly income for the period starting from 1st July 2019
Yearly family income €			Allowance amount based on the number of members in the family - €
			2	3	4	5	6	7 Or more
Up to	-	13,894.19	46.48	82.63	118.79	154.94	191.09	227.24
13,894.20	-	17,366.98	36.15	72.30	103.29	144.61	185.92	216.91
17,366.99	-	20,839.76	25.82	56.81	87.80	129.11	180.76	206.58
20,839.77	-	24,311.20	10.33	41.32	72.30	113.62	170.43	196.25
24,311.21	-	27,783.30	-	25.82	56.81	103.29	165.27	185.92
27,783.31	-	31,256.75	-	10.33	41.32	87.80	154.94	175.60
31,256.76	-	34,728.87	-	-	25.82	61.97	139.44	160.10
34,728.88	-	38,200.29	-	-	10.33	36.15	123.95	144.61
38,200.30	-	41,671.71	-	-	-	10.33	108.46	134.28
41,671.72	-	45,144.50	-	-	-	-	51.65	118.79
45,144.51	-	48,617.30	-	-	-	-	-	51.65

Reference household yearly income for the period starting from 1st July 2020
Yearly family income €			Allowance amount based on the number of members in the family - €
			2	3	4	5	6	7 Or more
Up to		13.963,66	46,48	82,63	118,79	154,94	191,09	227,24
13.963,67	-	17.453,81	36,15	72,30	103,29	144,61	185,92	216,91
17.453,82	-	20.943,96	25,82	56,81	87,80	129,11	180,76	206,58
20.943,97	-	24.432,76	10,33	41,32	72,30	113,62	170,43	196,25
24.432,77	-	27.922,22	-	25,82	56,81	103,29	165,27	185,92
27.922,23	-	31.413,03	-	10,33	41,32	87,80	154,94	175,60
31.413,04	-	34.902,51	-	-	25,82	61,97	139,44	160,10
34.902,52	-	38.391,29	-	-	10,33	36,15	123,95	144,61
38.391,30	-	41.880,07	-	-	-	10,33	108,46	134,28
41.880,08	-	45.370,22	-	-	-	-	51,65	118,79
45.370,23	-	48.860,39	-	-	-	-	-	51,65

(*)Including the married couple only or the married couple + one brother, sister or nephew/niece households with children under 18 years of age

ART. 44 OF THE CODE

The family unit allowance for employees having household with children under 18 years are reported in the Allegato_2020.

PART VIII

(Legislative Decree No. 151 of 26^th March 2001, Consolidated Law on the protection and support of maternity and paternity)  

INPS pays the benefit (with reference to employees, the employer advances the benefit payment) in the measure of 80% of the average daily wage; in case of self-employment the 80% is referred to the income. The national collective labour agreements may ensure full pay, by committing employers to pay the difference.

Women are entitled to this payment for the period of maternity leave or for the pregnancy interruption after the 180^th day from the beginning of gestation.

The benefit is paid for 2 months preceding the expected date of childbirth and for 3 months after childbirth (unless flexibility).

Article 1, paragraph 485, Law 30^th December 2018, n. 145 (Budget Law 2019), in force since 1^st January 2019, also introduces an alternative to the provisions of paragraph 1, Article 16, Legislative Decree 151/2001 (Consolidated Law on the protection and support of maternity and paternity). In fact, it recognizes to female workers “the right to benefit from the entire duration of the maternity leave after the event of the birth, within the five months following the same, provided that the specialist doctor of the national health service, or of facilities in agreement with it and the competent doctor for the purposes of prevention and health protection in the workplace attest that this option does not prejudice the health of the pregnant woman and the unborn child”.

Birth Grant (Bonus bebè)

(Article 1, paragraphs from 125 to 129 of Law No. 190/2014 and the related D.P.C.M. 27 February 2015)

(Article 1, paragraphs 248 and 249 of Budget Law No. 205/2017 for 2018).

(Article 23 quater, Law Decree 23^rd October 2018, n. 119 converted, with amendments, by Law 17^th December 2018, n. 136)

(Article 1, paragraphs 340 and 341 of 2020 Budget Law, no. 160 of 27 December 2019)

The Budget Law for 2020 confirmed the birth grant, the so-called Bonus bebè, for each child born or adopted from 1^st January to 31^st December 2020. The grant, therefore, introduced and governed by Law 190/2014[47] is paid for each child who was born or adopted or in pre-adoptive childcare in the period between 1^st January 2015 and 31^st December 2020. It is paid until the one-year of age or until one-year since the entry into the family unit following adoption, up to the spending limits indicated below.

The Law Decree n. 119/2018, converted with amendments by Law No. 136/2018, has extended the birth grant (set forth in Law n. 190/2014) to children born and adopted between 1^st January-31^st December 2019. This Law Decree also recognized an increase of 20% of the grant amount for each child following the first, born or adopted in period between 1^st January-31^st December 2019.

Requirements

The applicant parent[48] shall satisfied the following qualifying conditions:

-   Italian or EU citizenship;

-   in case of non-EU countries citizenship, a EU residence permit for a long period[49] is requested;

-   foreign citizens having the status of political refugee or subsidiary protection[50] are equivalent to Italian citizens.

Ministry of Labour and Social Policies[51] has clarified that the benefit can be grant to foreigners who are entitled to the following permission, respectively under Articles 10 and 17 of the Legislative Decree No. 30/2007:

A.    “residence card for family member” for EU citizen’s family members (Italian or EU), who are not nationals of a member State;

B.    “permanent residence card for family members” for EU citizen’s family members (Italian or EU), who are not nationals of a member State;

-          Residence in Italy;

-          Living with the child (the child and the claimant parent must be cohabiting and must have their usual residence in the same municipality;

-          ISEE of the minor for whom the benefit is requested (e.g. ISEE minors), must not exceed € 25,000 yearly).

Benefit Amount

INPS pays, in monthly installments, the annual amount of the allowance, whose extent depends on the ISEE value calculated taking into account the family income:

-          € 960 per year (€ 80 per month for 12 months), or € 1,152 per year (€ 96 per month for 12 months) in presence of child following the first, if the ISEE value is equal to or higher than € 40,000;

-          € 1,440 per year (€ 120 per month for 12 months), or € 1,728 per year (€ 144 per month for 12 months) in presence of child following the first, if the ISEE value is lower than € 40,000 and higher than € 7,000;

-          € 1,920 (€ 160 per month for 12 months), or € 2,304 per year (€ 192 per month for 12 months) in presence of child following the first, if the ISEE value is lower than € 7,000.

Financing

The birth grant is on the State Budget charge. For events occurring from 1^st January 2020 to 31^st December 2020, the spending limits are following:

- € 348 million for 2020;

- € 410 million for 2021.

The Law No. 190/2014, for events (pre-adoptive births/adoptions) occurred in the three-year period 2015-2017, has established the financing of the measure up to 2020: € 1,012 million for each year of the two-year period 2017-2018, € 607 million for 2019 and € 202 million for 2020.

Bonus of 800 Euro for birth or adoption of a minor (Bonus Mamma domani)

(Article 1, paragraph 353, Law No. 232 of 11^th December 2016, Budget Law for 2017)

The Budget Law for 2020 has extended the bonus of 800 €, introduced with the 2017 Budget Law, to women who are pregnant or to mothers, in the event of birth or adoption of children. Upon claim of the future mother, INPS pays the bonus in a lump sum payment (pregnancy or birth, adoption or custody) for the following events:

-          completion of the 7^th month of pregnancy (beginning of the 8^th month of pregnancy)

-          child delivery, although before the beginning of the 8^th month of pregnancy;

-          national or international adoption of the minor provided with final judgment in accordance with Law No. 184/1983;

-          national or international[52] pre-adoptive foster[53].

The bonus is not included in the taxable income according to article 8 of the Consolidated Text of income tax and is on the State[54] charge.

Requirements:

-   residence in Italy;

-   Italian or EU citizenship; Non-EU nationals holding the political refugee status and subsidiary protection are equal to Italian citizens[55];

-   non-EU citizens holding a long-term EU residence permit[56];

-   holders of a residence card permit for EU citizen’s family members (Italian or EU), who are not nationals of a member State[57];

-   holders of a permanent residence card permit for family members who are not nationals of a Member State[58];

-   all future mothers, legally residing in Italy, who apply for the bonus provided that they satisfied the legal-factual conditions of Article 1 paragraph 353 of the Law No. 232/2016.

Mandatory and optional paternity leave

(Article 4, paragraph 24, letter a), Law No. 92 of 28^th June 2012)

(Article 1, paragraph 354, Budget Law for 2017 No. 232 of 11^st December 2016)

(Article 1, paragraph 278, lett. a) Budget Law for 2019 No. 145 of 30^th December 2018)

(Article 1, paragraph 342, let. a) Budget Law for 2020 No. 160 of 2019)

The Budget Law for 2018 stated the increase of the mandatory paternity leave from two to four days for child’s births/adoptions/custodies in the calendar year 2018. It also provided employees for the possibility of benefiting of one further day of optional paternity leave upon agreement with and in replacement of the mother, in relation to the mother’s maternity leave period.

The Budget Law for 2019^[59] has increased the mandatory paternity leavedays up to five, not necessarily consecutive, confirming, at the same time, the further one day of the optional paternity leave.

Article 1, paragraph 342, letter a) of law no. 160/2019 (budget law 2020) has provided for the extension with modification of the mandatory and optional leave for the dependent fathers. For the year 2020, the duration of leave has increased by two days, passing from five to seven days. Another optional day of leave may be added to the mandatory leave, but in this case as an alternative to the mother's maternity leave.

The father shall be an employee; he is entitled to a daily allowance equal to 100% of the wage for each day of the paternity leave.

Parental leave

(Article 4, paragraph 24, letter a), Law No. 92 of 28^th June 2012)

(Article 1, paragraph 354, Budget Law for 2017 No. 232 of 11^st December 2016)

Claimant workers, both mothers and fathers, are entitled to an optional parental leave period of total 10 months (considering both the parents), which can be raised up to 11 months if the father exercises his right to abstain from work for a continuous or fractional period of not less than three months.

Parents can benefit from the parental leave up to the age of 12 of the child; it provides for a reduced remuneration (30% of the wage) if the parents benefit from it within the sixth year of age of the child and for a maximum period of six months, considering both them. For further periods and for periods between the sixth and the eighth year of age of the child, the parental care provides for remuneration only upon condition that the applicant’s personal income is less than 2.5 times the minimum pension amount.

After the eighth year of age of the child the parental leave does not provide any remuneration.

Maternity/paternity protection for not entrepreneurial self-employed workers registered with the Special Fund Self-employed.

(Article 64, paragraph 2, Legislative Decree No. 151 of 26^th march 2001 Art.1, paragraph 1, letter b) law 2 November 2019, n. 128, containing “measures aimed at extending the social security protections provided for workers enrolled in the Special Fund Self-employed”)

In order to ensure adequate protection to not entrepreneurialself-employment and to promote a flexible structure of the employment, in terms of times and places, Article 64, paragraph 2 of the Maternity/Paternity[60] has been implemented with Article 13 of the Law No. 81/2017. This Article states that the mandatory period of maternity shall be no longer conditional to the refrain obligation from working activity. This rule applies to both births and national or international adoptions/pre-adoptive custodies.

Furthermore, provides for new modalities to benefit from parental leave. Specifically, workers registered with Special Fund for Self-employedare entitled to a remuneration for parental leave for a maximum period of six months within the first three years of the child's life. This remuneration, although benefited from other fund or pension scheme, cannot generally exceed the total time limit of six months, considering both parents.

With the law 2 November 2019, n. 128, containing measures aimed at extending the social security protections provided for workers enrolled in the Special Fund Self-employed, the contribution requirement necessary for access to maternity protection for female workers and workers who are not pensioners and not enrolled in other mandatory forms of social security. Specifically, the law provided that maternity or paternity allowance and parental leave are paid on condition that, towards the workers concerned, they are accredited to the separate Management, referred to in Article 2, paragraph 26, of Law no. 335/1995, contributions equal to a monthly payment in the twelve months preceding the beginning of the claimable period. Previously, the useful requirement was three monthly contributions.

Benefit amount

For workers registered with the Special Fund for Self-Employed, if the income derives from free-lance professional activity or from coordinated and continuous quasi-subordinate collaboration, the leave allowance is equal to 80% of 1/365 of the income.

Covid-19 leave

(Art 23 of the decree-law n. 18/2020 and Art 72 of the decree-law n. 34/2020)

Article 23 of decree-law no. 18/2020, converted, with modifications, by the law 24 April 2020, n. 27 introduced an indemnified leave (so-called Covid-19 leave) of 15 days usable for the care of minors during the time span from 5 March to 31 July 2020. This leave was extended to 30 days by article 72 of decree-law n. 34/2020.

The covid-19 leave is available to parents employed in the private sector, to workers enrolled in the separate management referred to in article 2, paragraph 26, of the law of 8 August 1995, n. 335 and by self-employed workers registered with INPS.

The leave in question can be enjoyed by only one of the parents or by both, but not on the same days per household (and not for each child).

The allowance is equal to:

·         50% of the salary, for employees;

·         50% of 1/365 of the income, identified according to the calculation basis used for the determination of the maternity allowance, for workers enrolled exclusively in the Special Fund for Self-employed;

·         50% of the conventional daily wages, established annually by law, for self-employed workers.

Maternity allowance granted by the municipality

(Article 74 of Legislative Decree No. 151/2001 – Consolidate Law Maternity - Paternity)

Maternity allowance granted by the Municipality, is a welfare-based benefit paid by INPS and subject to means testing.

It is paid for births, adoptions and the pre-adoption child custody occurred from 1^st January 2019 to 31^st December 2020;

Beneficiaries

Unemployed mothers or employed mothers provided they are not entitled to an economic maternity allowance or, for the differential component, to an amount lower than that of the allowance, who are:

- Italian citizens;

- EU citizens;

- non-EU’s residing in Italy with a residence permit which shall be assessed by their Municipalities of residence.

Benefit amount

The benefit amount for 2019 is equal to € 346.39, for five month for a total of € 1,731.95; for 2020 is equal to € 348.12, for five month for a total of € 1,740.60.

For 2019, the ISEE value is equal to € 17,330.01; for 2020 is equal to € 17,416.66.

Maternity allowance granted by municipalities
Year	Monthly amount €	Yearly amount €
2019	346.39	1,731.95
2020	348.12	1,740.60

This allowance, like the allowance for the family unit, does not constitute income for tax and social security purposes; INPS pays it in a single solution, no later than 45 days from the date of receipt of the data transmitted by the Municipalities.

STATISTICAL DATA

ART. 48 OF THE CODE

A.It has been referred to subparagraph (a) of Art. 48

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

C.  Pursuant to Art. 74 – Title I

X.     INVALIDITY BENEFIT

See report ex Article 76

X.     SURVIVORS’ BENEFIT

See report ex Article 76

PARTE XI

Social security contribution exemption for hiring young people graduated cum laude

(Article 1, paragraphs 706-717, Law No. 145/2018, as amended by Law No. 160/2019)

Budget Law for 2020 (Law No. 160/2019), reforming the so-called “Bonus giovani eccellenze”, abrogated paragraph 714, Law No. 145/2018 (which provided for the National Social Security Institute the commitment to establish procedure for using the incentive regulated by paragraph 706), and amended paragraph 715. In particular, it is stated that such incentive is regulated, from 1st January 2020, under the same procedure provided by Law No. 205/2017 for the so-called “Esonero contributivo assunzione giovani”.

More specifically, the incentive is provided for employers who, in 2019, hire, with open-ended contract employment, young people, if they have brilliantly concluded university studies by obtaining in the period from 1st January 2018 to 30th June 2019:

-   master’s degree with a final score of 110 cum laude and with a weighted average^[62] equal to at least 108/110,

­   within the official length of the study course;

­   before aged 30;

­   at legally recognized universities, both state and not;

-   PhD,

-   before aged 34

-   at legally recognized universities, both state and not.

The exemption measure

The employer[63] can benefit from exemption for a maximum period of 12 months, starting from the hiring date and for a maximum amount of € 8,000 (for each employment relationship[64], excluding domestic work). If a worker, for whose open-ended contract employment has been partially granted this contribution exemption, is hired again, in 2019, with an open-ended contract employment by other private sector employers, the benefit is proportionally paid to these last ones for the remaining period.

The exemption canbe combined with other hiring incentives having both economic and contributory nature, which are defined on a national or regional basis and subject to the de minimis aid regulation.

The exemption cannot be granted to private sector employers who, in the 12 months preceding the hiring, have carried out individual dismissals for justified objective reasons as well as collective dismissals in the production unit for which they want to hire. Furthermore, carrying out the individual dismissal for justified objective reasons of the newly hired worker as well as of a worker employed in the same production unit and with the same qualification of the newly hired worker, results in the exemption revocation and the recovery of an amount corresponding to the already benefited contribution exemption.

Social security contribution exemption for hiring young people (Esonero contributivo assunzione giovani)

(Article 1, paragraphs 100-108 and 113-114 Budget Law for 2018, No. 205 of 27^th December 2017)

(Article 1-bis, Law Decree No. 87 of 12^th July 2018, converted with modifications into Law No. 96 of 9^th August 2018)

(Article 1, paragraph 10, Budget Law for 2020, No. 160 of 27^th December 2019)

The Budget Law for 2018 - to foster stable working relationships for young people, through a wider use of open-ended contract employment - has introduced a new exemption from payment of social security contributions for private sector employers, for the recruitments as from 1^st January 2018.

Budget Law for 2020 extended the social security contribution exemption also for 2019 and 2020 and abrogated article 1 bis of Law Decree 87/2018, converted with modification into Law 96/2018, which also provided for such extension.

The exemption concerns recruitment of young workers who, during the whole working lifetime, have never been employed with open-ended contract (both new recruitments and transformation of preceding fixed-term contracts).

Beneficiaries

All private sector employers, both entrepreneurs or not, including agricultural employers. Public Administrations, instead, cannot benefit from this exemption.

Conditions for the exemption

The exemption is applied to employers who employ people in compliance with Article 1, paragraphs 1175 and 1176, Law No. 296/2006, provided that:

 

-   they have regularly paid social security contribution;

-   they have never infringed the fundamental rules protecting working condition;

-   without prejudice to other legal obligations, national collective agreements as well as regional, territorial or company agreements where subscribed by the more representative at national level trade unions of the employers and the employees.

To benefit from the exemption, the following mandatory conditions^[65], which workers have to satisfy at the time of the recruitment, shall be fulfilled:

-   less than 30 years of age (29 years and 364 days). For workers employed in 2018, 2019 and 2020 the age limit has been raised to 35 years (34 years and 364 days).

-   not to be employed with open-ended contract by the same employer or by other employer during the whole working lifetime^[66]. Preceding apprenticeship periods with the same employer or other employer shall not preclude the exemption entitlement, as well as agency work contract and domestic work periods.

The exemption measure

50% of the total social security contribution on employers’ charge. The exemption cannot anyway exceed a maximum of € 3,000 per year, to be proportionated and applied on a monthly basis. The exemption is increased up to 100% of the total social security contribution on employers’ charge (without prejudice to the limit of € 3,000, to be proportionated on an monthly basis), in case of open-ended contract employments concerning young people under 30 years of age who, during the preceding six months, have been performed school-work alternation (alternanza scuola-lavoro) with the same employer (or periods of apprenticeship for professional qualification, high school graduation, high-level technical specialization certificate or periods of high-level training apprenticeship). 

The same Budget Law for 2018 provided that the exemption can also be applied in case of the employer prolongs the employment of a worker who has concluded the apprenticeship period, provided that he is under 30 and the prolonged period starting date is from the 1st January 2018. In this case, the exemption is applied for a maximum period of twelve months, without prejudice to the maximum amount of € 3,000.

The exemption duration, stated by law, is for a maximum period of 36 months as from the starting date of the working relationship, which has to be on an ongoing basis.

Combination with other forms of social security contribution exemption

The exemption cannot be combined with other contribution exemptions or reductions provided by the current legislation, during the period of their application^[67]. If there is a residual period, this can be combine with NEET (Not [engaged in] Education, Employment or Training), and “Occupazione Sviluppo Sud” employment incentives.

Social security contribution exemption for Southern Italy (Incentivo “Occupazione Sviluppo Sud”)

(Directorial Decree of ANPAL (National Agency for Employment Active Policies) No. 178 of 19^th April 2019 - Article 39 ter, Law Decree of 30^th April 2019, No. 34)

The Directorial Decree of ANPAL No. 178/2019 introduced an incentive for recruitments with open-ended contract made during the period from 1st May to 31th December 2019, with the aim of encouraging work relationship in "less developed" regions (Basilicata, Calabria, Campania, Puglia and Sicily) or "in transition" (Abruzzo, Molise and Sardinia).

Furthermore, article 39–ter, Decree Law No. 34/2019, converted with modifications into Law 28^th June 2019, No. 58, and the Directorial Decree of ANPAL No. 311 of 12^th July 2019, extended the exemption to recruitments made in the period from 1^st January to 30^th April 2019.

Beneficiaries

Private sector employers who hire, in 2019, unemployed workers with open-ended contract, also with part-time employment.

Employers are entitled to the incentive for switching from a fixed-term contract employment to an open-ended contract one as well as for an employment relationship, established because of an obligation implementation with a working cooperative.

Requirements

The unemployed workers shall be aged at least 35 (34 years and 364 days).

For workers older than 35 years, in addition to “status” of unemployed, a further qualifying condition consisting of being without a regularly remunerated employment from at least six months is required.

The exemption measure

The incentive consists of a social security contribution reduction up to € 8,060 per year, applied on a monthly basis for 12 months. In case of part-time contract working activity, the incentive measure is proportionally reduced.

The monthly maximum measure of the contribution reduction is equal to 671.66, while the daily one is 21.66 (671.66/31) per each day of benefited incentive if the employment relationship begins or ends during the months.

Whether the necessary requirements are satisfied, the incentive can be combined, for the residual part of the contribution on employer’s charge, with the exemption from social security contribution payments for hiring young people[68].

In case of agency contract work, the incentive is due both for open-ended and fixed-term contract agency workers, including periods in which the worker has not been assigned. For the same worker, the incentive can be due only for a single working relationship.

Social security exemption for professional apprenticeship contract

The 2020 Budget Law introduced a full social security contribution exemption for apprenticeship contracts concluded in 2020 by employers with less than 9 workers.

The full exemption is applied for periods accrued within the first three years of contract, after the third year a 10% rate has to be applied.

Social security contribution exemption “IncentivO Lavoro” (“IO Lavoro”)

(Directorial Decree of ANPAL (National Agency for Employment Active Policies) 11^th February 2020, No. 52)

Directorial Decree of ANPAL No. 52/2020 introduced an incentive for recruitments with open-ended contract of unemployed workers, made from 1^st January to 31^th December 2020, in "less developed" regions, "in transition" or “more developed” regions, within the limits of the resources specifically allocated.

Beneficiaries

Private sector employers, both entrepreneurs or not, who hire, in 2020, unemployed workers with open-ended contract.

Requirements

The unemployed workers shall be aged at least 25 (24 years and 364 days).

For workers older than 25 years, in addition to “status” of unemployed, a further qualifying condition consisting of being without a regularly remunerated employment from at least six months is required.

Employers who switch from a fixed-term employment contract to an open-ended one are entitled to the incentive. Except for this case, the exemption is precluded if the worker was employed, for any duration and during the preceding six months, with the same employer who got the incentive.

In case of agency contract work, such requirements have to be fulfilled by the employer where temporary agency workers are located.

Territorial scope

The incentive is due only if the recruitment with open-ended contract is referred to a workplace located in “less-developed” Regions (Basilicata, Calabria, Campania, Puglia and Sicily), in “more developed” Regions (Piemonte, Valle d’Aosta, Liguria, Lombardia, Emilia Romagna, Veneto, Friuli Venezia Giulia, Provincia Autonoma di Trento, Provincia Autonoma di Bolzano, Toscana, Umbria, Marche and Lazio) or “in transition” Regions (Abruzzo, Molise and Sardinia), regardless of the employee's residence.

The incentive is due within the limits of the resources allocated for each of the three “macro-counter” provided per Regions (“less-developed”; “more developed”; “less-developed and in transition”).

In the event of a workplace’s modify, moving from a macro-counter to another one, the incentive may continue to be used only after checking the availability of resources on the counter of destination. Therefore, in the event of a lack of resources on the macro-counter for the region of destination, the exemption shall not apply from the following month’s pay.

Contract typologies

The exemption is allowed for recruitments made from 1st January to 31th December 2020, in the respect of the resources’ availability.

Specifically, the incentive is due for open-ended employment contracts, also part-time, and professional apprenticeship contracts.

The incentive is expressly precluded for domestic employment contract and occasional work.

In case of agency work contract, the incentive is due both for open-ended and fixed-term contract agency workers, including periods in which the worker has not been assigned. For the same worker, the incentive can be due only for a single working relationship.

The exemption measure

The incentive consists of a social security contribution reduction up to € 8,060 per year, applied on a monthly basis for 12 months. In case of part-time contract working activity, the incentive measure is proportionally reduced.

The monthly maximum measure of the contribution reduction is equal to 671.66, while the daily one is 21.66 (671.66/31) per each day of benefited incentive if the employment relationship begins or ends during the months.

Combination with other forms of social security contribution exemption

The social security contribution exemption can be combined with the incentive for employers who hire the beneficiaries of the “Citizenship Basic Income”, as provided by Article 8 of the Legislative Decree No. 4/2019, converted, with modifications, into Law No. 26 of 28th March 2019.

In the event that the employer has used up the full exemption provided for “IO Lavoro”, the residual exemption for the recruitment of a “Citizenship Basic Income” beneficiary can be used as a tax credit.

Whether the necessary requirements are satisfied, the incentive can be combined, for the residual part of the contribution on employer’s charge, with the exemption from social security contribution payments for hiring young people.

The incentive can be also combined, within the limits and conditions stated by EU Regulations on State aids, with other economic incentives provided by regional provisions for those employers who are located in such Regions.

 

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 2020 annual maximum amount of the pensionable contribution is equal to € 103,055.00[69] for the new insurers from 1^st January 1996 registered with compulsory pension schemes and for those who opt for the contribution related system.

For insured before January 1^st, 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 for 2020 is € 515.58.

The maximum contribution ceiling[70]for 2020 is equal to € 187,854.00 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 must consider for the purposes of 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[71].

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

The lower daily earnings ceiling for conventional remuneration is equal to € 27.21.

Since 1^st January 1993, an additional rate[72] of a percentage point applies on the worker remuneration quota, which exceed the limit of the first bracket of pensionable wage (€ 47,379.00); this additional rate is due for all pension schemes that provide for a contribution rate lower than 10% on charge to the worker. Therefore, the 1% additional rate shall apply on the wage amount exceeding € 47,379.00, equal to € 3,948.00 per month.

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

Maternity benefit contributions

To cover the financial charges relating to maternity benefits for female workers and private sector employees, the employers shall pay a contribution rate on all the employees’ wages as follows:

-        0.46% (industry sector, credit, insurance, artisans, seamen,  show business industry);

-        0.24 % (tertiary sector and services, building owners and worship services).

A portion of maternity expenses is supported by the general taxation; the amount is adjusted on 1^st January of each year on the basis of the variation in consumer prices for families of workers and employees calculated by ISTAT. For 2020 is € 2,143.05.

 

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.

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.

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.

2. Show Business Industry workers 

The IVS contribution rate for the show business industry workers and professional sportsmen is 33% (employers: 23.81%; workers: 9.19%).

Only for terpsichorean and dancers, as well as choreographers and their assistants, registered after 31^st December 1995 to the former National Welfare and Assistance Office for Workers in the Entertainment Business and sport (ENPALS) and without previous insurance contribution qualifying condition in other compulsory pension schemes, the total contribution rate is 35.70% (employers: 25.81% workers. 9.89%).

2.1 Workers registered with compulsory schemes from the 1^st January 1996

For the year 2020, the upper annual earnings ceiling to be considered to determine both the contribution and benefit calculation basis, under Article 2, paragraph 18, Law No. 335/1995,is € 103,055.00.

The solidarity contribution rate[73] of 5% (2.50% for employers and 2.50% for workers), is applied only on the annual earning exceeding the aforementioned ceiling (€ 103,055.00).

The additional contribution rate[74] of 1% on charge of the worker, is applied on the annual earning exceeding, for 2020 € 47,379.00 (which divided in 12 months is equal to € 3,948.00) up to the aforementioned annual ceiling (€ 103,055.00).

2.2 Workers registered with compulsory schemes before the 1^st January 1996

The taxable upper daily ceiling earning is equal to € 751.00. Consequently, for 2020, the daily earning bands and the related upper ceilings are adjusted as follows:

Year 2020
Daily earning brackets		Taxable upper daily ceiling	Days of credited contribution
from €	to €	€
751.01	1,502.01	751.00	1
1,502.01	3,755.00	1,502.00	2
3,755.01	6,008.00	2,253.00	3
6,008.01	8,261.00	3,004.00	4
8,261.01	10,514.00	3,755.00	5
10,514.01	13,518.00	4,506.00	6
13,518.01	16,522.00	5,257.00	7
16,522.01	over	6,008.00	8

The solidarity contribution[75] rate of 5% (2.50% for employers and 2.50% for workers), is applied on the taxable daily earning exceeding the upper ceiling of the above-mentioned brackets.

The additional contribution rate of 1% on charge of the worker is applied on the daily earning exceeding, for 2020, € 152.00 up to the upper ceiling of the above-mentioned brackets.

Maternity and sickness contribution

For the year 2020, the upper daily earnings limit[76], to be considered in order to determine the sickness and maternity benefit insurance contributions for temporary workers, is equal to € 67.14.

3. Professional Sportsmen

(Law No. 366 of 14^th June 1973; Legislative Decree No. 166/1997; Legislative Decree No. 182/1997)

3.1 Workers registered with compulsory schemes from 1^st January 1996

For the year 2020 the upper annual earnings ceiling, to be considered in order to determine both the contribution and benefit calculation basis[77] is € 103,055.00

The additional contribution rate[78] of 1% on charge of the worker, is applied on the annual earning exceeding, for 2020, € 47,379.00 (which divided in 12 months is equal to € 3,948.00) up to the aforementioned upper annual ceiling (€ 103,055.00).

The Budget Law for 2018[79], has foreseen a gradual increase in the solidarity contribution rate[80], starting from 1^st January 2018, to the extent of 1.5% (of which 0.75% to be paid by the employer and 0.75 by the employee) and as starting from 1^st January 2020, to the extent of 3.1% (of which 1% to be paid by the employer and 2.1 by the worker). It is applied only on the annual earning exceeding the aforementioned upper ceiling of € 103,055.00 up to the annual amount of € 751,278.00.

3.2 Workers registered with compulsory schemes before 1^st January 1996

The taxable upper daily ceiling earning is equal to € 330.00.

The Budget Law for 2018^[81], has foreseen a gradual increase in the solidarity contribution rate^[82], starting from 1^st January 2018, to the extent of 1.5% (of which 0.75% to be paid by the employer and 0.75 by the employee) and as starting from 1^st January 2020, to the extent of 3.1% (of which 1% to be paid by the employer and 2.1 by the worker).

The solidarity contribution rate[83] is applied only on the daily earning exceeding the aforementioned upper daily ceiling of € 330.00 up to the daily amount of € 2,408.00.

The additional contribution rate of 1% on charge of the worker is applied on the daily earning exceeding, for 2020, € 152.00 up to the aforementioned daily ceiling (€ 330.00).

4. Self-Employed

(Law No. 662/96, Article 1, paragraph 202 ss. (traders)

Law No. 463/59; Law No. 443/85 (artisans)

4.1 Artisans and traders

The individuals who carry out an individual or associated entrepreneurial form, registered with the Chamber of Commerce (CCIAA), are included in the management of the artisans and traders, activities included in the respective sector[84], and which is habitually and in prevalencededicated to it. If these subjects avail themselves of the usual collaboration of relatives and similar within the third degree, they are bound to comply with the contribution obligation also for the collaborators.

For the year 2020, the lower yearly income to be considered for the Invalidity, old age and survivor’s insurance (IVS) contribution calculation for artisans and traders is equal to € 15,953.00 starting from this minimum income and until the first bracket of yearly pensionable income, € 47,379.00 for 2020, it is applied a specific rate which varies over the mentioned bracket.

The upper yearly income for which IVS contributions are due is equal to € 78,965.00 for workers already registered with the Scheme on 1^st January 1996; and € 103,055.00 for workers registered after 1^st January 1996.

The IVS contribution rate for 2020 for artisans and traders is equal to:

Workers	Income €	Artisans %	Traders %
Holders of all ages and adjuvants/assistants over the age of 21 years	up to 47,379.00	24,00	24,09
	from 47,379.00	25.00	25.09
Holders of all ages and adjuvants/assistants under the age of 21	up to 47,379.00	21,90	21.99
	from 47,379.00	22.90	22.99

In the case of incomes higher than € 47,379.00 per year, the increase of the rate of one percentage point is confirmed, as stated by Article 3-ter, Law No. 438 of 14^th November 1992.

Workers registered with the Traders’ Scheme shall pay an extra contribution rate of 0.09% to ensure compensation in case of permanent cessation of commercial activity. The obligation to pay this contribution has become permanent as per the 2019 Budget Law; this contribution will finance the relevant Fund.

In addition, workers registered with Artisans and Traders Scheme shall pay a contribution for maternity benefits of € 0.62 per month, equal to € 7.44 per year.

Law No. 190/2014, as amended by Law No. 208/2015, regulates the facilitated system for social security contributions,for individuals who satisfy requirements and are in the conditions set out in paragraph 54 and subsequent.

This facilitated system is optional and on request. It provides that contributions for artisans and traders scheme are calculated as a percentage of the flat-rate income, as set by the Internal Revenue Agency, without applying the minimum taxable level[85].

The 2020 Budget Law[86] modified some requirements for accessing the favorable tax system, which results in the beneficiary's right to also benefiting from facilitated system for social security contributions; to this last one no change has been made.

Therefore, also for 2020, the 35% reduction in the contribution due on income within the minimum annual amount, is confirmed to those who in 2019 were already beneficiaries of the lighter regime and, remaining the requirements for the tax relief, did not expressly waive it.

4.2 Farmers, sharecroppers, settlers and agricultural entrepreneurs

(Article 12, paragraph 4 and Article 7, Law No. 233 of 2^nd August 1990)

The calculation of IVS contributions to be paid by farmers, sharecroppers, settlers and agricultural entrepreneurs, depends on the company classification; companies are, in fact, divided in four categories on the basis of conventional income, as indicated in "Table D" attached to Law No. 233/90[87].

The contribution amount is determined by multiplying the conventional average income[88], determined[89], based on average daily remuneration of agricultural workers – by the number of work days indicated in the above cited “Table D”, according to the conventional income bracket of the company and by applying, to the resulting amount, a percentage rate.

The conventional average income for 2019, also valid for 2020, is € 58.62[90].

Contribution rates for the financing and calculation

The percentage rates to be applied to the above said conventional average income for farmers, sharecroppers, settlers and agricultural entrepreneurs, registered with their specific INPS scheme, have been adjusted[91] starting from 1^st January 2012 as indicated in the following tables B and C:

Table B – Financing rate
	Normal area		Disadvantaged area
Year	>21 years of age	<21 years of age	>21 years of age	<21 years of age
As from 2019 for all regardless of the area and the age	24.0%	24.0%	24.0%	24.0%
As from 2020 for all regardless of the area and the age	24.0%	24.0%	24.0%	24.0%

For 2019 and 2020, the additional contribution[93] is € 0.68 per day.

Contribution for pregnancy and maternity

The annual contribution[94] for covering the daily allowance for pregnancy and maternity is set at € 7.49[95] also for 2019 and 2020; it has to be paid for each active unit registered with the special scheme.

Contribution	Normal areas	Mountain territories/ disadvantaged areas
1. IVS contribution + additional IVS contribution according to Law No. 233/90 (percentages calculated with reference to the "conventional average income")*	24%	24%
2. Additional IVS contribution according to Law No. 160/75 (for maximum 156 days per year)*	€     0.67	€      0.67
3. allowance for pregnancy and maternity (fixed amount per active unit)*	€     7.49	€      7.49
4. INAIL insurance (fixed amount per active unit)*	€ 768.50	€  532.18

* The agricultural entrepreneurs (imprenditori agricoli professionali (IAP)) shall pay IVS contributions referred to in points 1 and 2 and contributions for pregnancy and maternity referred to in point 3, excluding contribution for INAIL referred to in point 4.

4.3 Self-employed fishermen

(Law No. 250 of 13^rd March of 1958)

Self-employed fishermen and members of cooperatives of small-scale fisheries as per Law No. 250 of 13^th March 1958:

Year 2020	Conventional remuneration
Measured on a daily basis	27,21 €
Measured on a monthly (25 days x 27,07) basis	680,00 €
Contribution rate	14.90%
Monthly contribution calculated by applying the contribution rate to the conventional remuneration	€ 101,32
Yearly maternity contribution (0,62 x 12)	€ 7.44

4.4 Self-employed workers registered with Special Fund (Gestione separata)

(Article 2, paragraph 26, Law No. 335/1995)

(Article 7, Law No. 81 of 22^nd May 2017 (Jobs Act Self-employed)

Article 2, paragraph 57, Law No. 92, 28^th June 2012, has provided that the contribution and calculation rate for the freelancers and similar workers, registered exclusively with Special Fund for self-employed, under Article 2, paragraph 26, Law No. 335/95, is equal to 33% for 2018; 33% for 2019 and for 2020 33%.

By the workers who are not already registered with other compulsory pension scheme or pensioners, the is due a contribution rate of 0.72%[96]in order to finance maternity, family allowances, sickness benefits and hospitalization and parental leave.

Code	Type of work relationship*	Rates
	Workers who are registered exclusively with the Special Fund for self-employed, are not pensioners and do not have a VAT registration number	IVS 2019	IVS 2020		Sickness, maternity and family allowance	Maternity	dis-coll	total 2019	total 2020
1A 1E	COMPANY MANAGING DIRECTOR, ASSOCIATION AND OTHER BODIES WITH OR WITHOUT LEGAL ENTITY	33		33	0.5	0.22	0.51	34.23	34.23
1B	STATUTORY AUDITOR, ASSOCIATION AND OTHER BODIES WITH OR WITHOUT LEGAL ENTITY	33		33	0.5	0.22	0.51	34.23	34.23
1C	COMPANY AUDITOR, ASSOCIATION AND OTHER BODIES WITH OR WITHOUT LEGAL ENTITY	33		33	0.5	0.22	0.51	34.23	34.23
1D	COMPANY LIQUIDATOR	33		33	0.5	0.22	0.51	34.23	34.23
02	COLLABORATOR OF NEWSPAPER, MAGAZINES, ENCYCLOPEDIAS AND SIMILAR	33		33	0.5	0.22	0.51	34.23	34.23
03	PARTECIPANT IN COLLEGYUMS AND COMMISSIONS	33		33	0.5	0.22		33.72	33.72
04	ADMINISTRATOR OF LOCAL AUTHORITIES (MINISTERIAL DECREE OF 25TH MAY 2001)	33		33	0.5	0.22		33.72	33.72
05	PH.D, RESEARCH STUDY. SCHOLARSHIP PAID BY...	33		33	0.5	0.22	0.51	34.23	34.23
06	ATYPICAL WORKER WITH COLLABORATION OR PROJECT CONTRACTS, INCLUDING WORKER WITH COLLABORATION ON OCCASIONAL BASIS	33		33	0.5	0.22	0.51	34.23	34.23
	(CO.CO.CO AND CO.CO.PRO)
07	DOORSTEP SELLER	33		33	0.5	0.22		33.72	33.72
09	AUTONOMOUS COLLABORATION ON OCCASIONAL BASIS (ARTICLE 44, LAW NO. 326/2003)	33		33	0.5	0.22		33.72	33.72
10	PENSIONERS OR PEOPLE AGED OVER 65
12	PROROGATION OF COLLABORATION CONTRACTS OF ATYPICAL WORK	33		33	0.5	0.22	0.51	34.23	34.23
13	ASSOCIATE BUSINESS PARTNERSHIP (from 2004 to 2015)	33		33	0.5	0.22		33.72	33.72
14	SPECIALIST TRAINING	33		33	0.5	0.22		33.72	33.72
17	PARLIAMENTARY ADVISOR	33		33	0.5	0.22	0.51	34.23	34.23
18	ATYPICAL WORK WITH COLLABORATION CONTRACT – LEGISLATIVE DECREE NO. 81/2015	33		33	0.5	0.22	0.51	34.23	34.23

Article 7, Law No. 81 of 22^nd May 2017, has provided that starting from 1^st

July 2017, for collaborators, research grant holders and doctoral students with scholarships, the owners of the administrative offices, auditors and auditors, registered exclusively to the Separate Account, not retired and without VAT, an additional contribution rate of 0.51% is due.

Under this law, the contribution rates, which must be paid as from 1^st July 2018 by the client companies[97], to the special fund for self-employed, are determined as follows:

Budget Law for 2017[98], stated that starting from the year 2017, for self-employed, registered with VAT purposes, registered with the INPS Special Fund for self-employed and that are not registered with other compulsory pension schemes or pensioners, the contribution rate[99] is set at 25%

FREELANCERS AND PENSIONERS	contribution rate
Freelancers not registered with other forms of compulsory social security scheme	25,72% (25% IVS + 0,72 additional contribution rate)
Freelancers also registered with other forms of compulsory social security scheme or pensioners	24%

Maximum and minimum annual income

For 2020, the maximum annual income[100] is equal to € 103,055.00.

For 2020, the minimal income[101] is equal to € 15,953.00.

Therefore, according to the specific rates applied to the above-cited categories, the minimum annual contributions are calculated as follows:

MINIMUM YEARLY INCOME €	RATE %	MINIMUM YEARLY CONTRIBUTION €
15,953.00	24	3.828,72
15,953.00	25,72	4.103,11 (IVS 3.988,25)
15,953.00	33,72	5.379,35 (IVS 5.264,52)
15,953.00	34,23	5.460,71 (IVS 5.264,52)

 

Nothing to report

Nothing to report

Unlike social security benefits, based on insurance relationships and financed with contributions from active workers and public and private companies, welfare-based benefits are economic benefits of a social nature to which one is entitled in particular difficult situations.

INPS manages the following economic welfare-based benefits to support individuals and families who do not have sufficient resources to guarantee the basic need satisfaction or who are in temporary situation of emergency:

-   Citizenship basic income (Reddito di Cittadinanza – RdC) and Basic pension (Pensione di Cittadinanza – PdC)

-   REI - Income for Active Inclusion

-   Minimum income supplement

-   Social allowance

-   Fourteenth month’s payment

-   Social supplement

-   Bonus - Tax credit

Citizenship Basic Income and Basic Pension (Rdc/PdC)

(Article 1, Decree Law No. 4/2019 converted, with integrations and modifications, by Law No. 26/2019)

Art.1 of Decree Law n. 4/2019 introduced, from April 2019, the Citizenship basic Income (RdC), as a measure to fight poverty and support families in need, aimed at reintegration into the labor market and social inclusion. The economic allowance, after checking the legal requirements, is monthly credited into the RdC Card, a new prepaid card, specially issued.

The Benefit is conditional on the Immediate Availability Declaration (DID), made by the members of the family, and on the subsequent signing of the Work Agreement at the Employment Centre. However, the following are excluded from these obligations:

·         minors;

·         beneficiaries of the retired RdC;

·         beneficiaries of the PdC;

·         persons over the age of 65 years;

·         persons with disabilities[102], if targeted placement is not envisaged;

·         subjects already employed or attending a regular course of study or training.

Persons with care burden may be exempted by the Employment Centers, if they deal with family members under the age of three or housebound and care-dependent – not self-sufficient - disabled people.

Recipients

Households whose members are:

·         Italian or European Union citizens;

·         third-country nationals with long-term EU residence permit, or beneficiaries of international or stateless protection;

·         third-country nationals, with residence permit or permanent residence permit, and relatives of an Italian or European Union citizen

The applicant must have been residing in Italy for at least 10 years, and continuously over the last 2 years.

Economic requirements

·         ISEE value (ordinary or current ISEE, if any) lower than € 9,360;

·         real estate assets, other than first and home of residence, not exceeding € 30,000;

·         moveable assets not exceeding € 6,000 for households with a single person; € 8,000 for households of two persons; € 10,000, for household composed of three or more people, increased by € 1,000 for each child starting from the third.

·         If the family has one or more disabled persons, the above-mentioned ceilings increase by 5,000 euros for each disabled person and 7,500 euros for each disabled person suffering from serious disability or care-dependent;

·         family income not exceeding the annual thresholds established by law (6,000 euros for RdC; 7,560 for PdC; 9,360 euros if the family resides in a rented house). In compliance with the ISEE regulation (D.P.C.M.n.159 of 2013, and subsequent amendments), social assistance allowances granted to any household members are not considering as an income. On the other hand, income from work in progress at the time of application is considered.

Inps verifies these requirements through a valid ISEE (Equivalent economic status indicator- a means-tested system). The investigation is automated and ends within after the month following the transmission of the application.

Benefit amount

The amount of benefit is given by the sum of A and B quotas or portions. The A quota is the family income supplement, while B is a contribution for rent or mortgage, based on the financial family information described by the ISEE.

·         Quota A, i.e. the income supplement, can reach a maximum of 6,000€ per year, multiplied by the “equivalence scale” for the RdC, per year in the event of a Citizenship basic Income;

·         Quota B, in the case of rental house, cannot exceed € 3,360 per year - € 280 per month for the RdC and in case of mortgage, it can reach 1,800€ per year -150€ per month.

The equivalence scale excludes:

a)   individuals who are in detention or in long-term care institutions or other residential structures fully charged to the State or other PA;

b)   unemployed family members who voluntary resigned, within the 12 months following the date of resignation, except for resignation for cause, or family members subjected to a personal precautionary measure, as well as a definitive sentence occurring in the 10 years preceding the request for the crimes provided for by the Articles. 270-bis, 280, 289-bis, 416-bis, 416-ter, 422 and 640 bis of the penal code.

The total benefit amount cannot exceed a threshold of 9,360 euros per year, multiplied by the equivalence scale for the RdC, reduced by the value of the family income.

Moreover, the benefit cannot be less than 480,00€ per year (40.00€ per month).

The benefit is paid monthly through a prepaid card, managed by Poste Italiane[103] (Italian Postal Service). This card allows you to make cash withdrawals within a monthly ceiling of € 100, multiplied by the equivalence scale for RdC.

Effective date and duration of the benefit

Beneficiaries of RdC begin to receive the allowance the month following the application and it is granted for 18 months[104], except in cases foreseen by law (situations that happen before the expiration date). It can be renewed for an additional 18 months, but the payment must be suspended one month before renewal.

In compliance with the income and property thresholds established by law, the household can receive the RdC even if its members carry out work activities, receive pension or NASPI[105] (special temporary unemployment allowance) allowance or any other income support for involuntary unemployment.

The RdC is compatible with work activity.

An additional benefit of 6 months is granted to RdC beneficiaries who start up self-employed activities or business, within the limits of 780,00€ per month.

A fund called “Citizenship Income Fund” has been set up to finance this benefit.

The RdC becomes Pension of Citizenship (PdC,) if all the members of the family are aged 67 or over, or if there are members under the age of 67 with serious disability, or care-dependent and not self-sufficient.

The PdC does not have the maximum duration limit of 18 months envisaged for the RdC: this allowance is provided, without limit of duration, provided that the legal requirements are fulfilled.

REI – Income For Inclusion (Reddito di Inclusione)

(Delegated Law against poverty (Law No. 33/2017 in force since 25^th March 2017) and Legislative Decree 147/2017, as amended by the 2018 Budget Law No. 205/2017))

REI was introduced as of January 1, 2018, as a national measure to fight poverty.

It consists of a means-tested benefit and adhesion to a personalized project. It consists of two parts:

a)an allowance;

b)a part of in-kind or services to person, identified in the personalized project, following a multidimensional assessment of the need of the family or, when the situation of poverty is exclusively connected to the working situation, by the service agreement[106], or by the program intensive job search[107].

Requirements

The REI is provided to families with the following requirements[108]:

·         citizenship and residence. The applicant must be a citizen of the Union or his family member has the right of residence or permanent residence, or a third-country national with a  EU residence permit for long-term residents or stateless persons in possession of a same permit or international protection (political asylum, subsidiary protection); in addition, the applicant must have been resident in Italy, continuously, for at least two years at the time of application;

·         financial requirements: family possession to be entitled for the benefit:

·         a valid ISEE value not exceeding € 6,000.00;

·         an ISEE value for REI not exceeding € 3,000.00;

·         real estate assets, house of residence excluded, not exceeding € 20,000.00;

·         a value of movable assets (deposits, current accounts, etc.) not exceeding € 10,000.00 (reduced to € 8,000.00 for family of only two people and € 6,000.00 for a single person).

To be eligible for REI it is also necessary that each family member:

·         does not receive social allowance for employment (NASpI) or other social buffers supporting income in the event of involuntary unemployment;

·         does not own vehicles and/or motor vehicles registered for the first time in the 24 months preceding the application (excluding motor vehicles for which tax relief is provided for people with disabilities);

·         does not own boats.

The payment of REI is conditional on the adhesion to the personalized project. However, the benefit is paid for the first 6 months even without signing the project.

Application and starting date of the allowance

The REI application is submitted to municipalities- councils - or territorial areas which, having verified the residence requirements, transmit it to INPS within 15 days for further requirements control and the calculation of the amount.

The allowance starts to be paid from the month following the application date.

Duration of the allowance

REI allowance is paid monthly, through an electronic payment card (REI Card) for 18 months.

Once the benefit has been fully used, a new REI application can be submitted only if at least six months have passed since the date of termination of the previous one. In this case the duration is 12 months.

Amount of the allowance

The amount of the REI is calculated on an annual basis and is determined by integrating the family resources up to a certain threshold. The threshold is 3000,00€ but the first application only 75% (2250,00€) is covered and grows due to the number of family members (re-measured according to the equivalence scale) as indicated in the following table. The maximum amount cannot, however, exceed the annual amount of the monthly social allowance, increased by 10%. The amount of the ReI received, however, depends on the social assistance allowance which are means-tested and the likely family income amount (from ISEE or any work income).

Number of family members	Reference threshold for first application €	Maximum monthly amount €
1	2.250,00	187,50
2	3.532,50	294,38
3	4.590,00	382,50
4	5.535,00	461,25
5	6.412,50	534,37
6 o più	6.575,56	547,96

The 2018 Budget Law[109] clarified even more this calculation mechanism by providing that if the amount of REI is less than or equal to 20€ per month, the same will be paid in one annuity. On the other hand, if the amount is zero because of other income or other social welfare allowances, the application will be rejected and can be re-presented without the need for a minimum time interval as the economic conditions vary.

The 2019 Budget Law[110] has repealed the REI and, therefore, starting from March 2019, the Inclusion Income can no longer be requested and starting from April it is no longer recognized or renewed for a second time.

Therefore, the last useful date for submitting the REI application was February 28, 2019.

Compatibility with work activity

The REI allowance can be granted even if the applicant or one or more family members work, but the money earned through that work activity must follow the financial requirements for entitlement to this allowance[111].

It is the responsibility of the family members to inform INPS about any work carried out, which is not recognized in the valid ISEE form, or if any change should occur in the working situation during the payment of the allowance, under penalty of suspension of the allowance. The applicant is obliged to inform INPS about the expected annual income from a work activity that may occur, within thirty days from the start of the work, using the REI - com form.

The REI is incompatible with the payment of social buffers during the time REI allowance is paid.

Minimum income supplement

(Law No. 638/1983)

The minimum income supplement is a State supplement, paid by INPS, when the pension amount resulting from the calculation of contributions accrued, is lower than an amount which is considered the "minimum subsistence". This minimum amount is 513.01 € per month for 2019 (€ 6,669.13 per year) and 515.07 € per month for 2020 (€ 6,695.91 per year).

Minimum income supplement is granted to Italian and foreign pensioners who have an income level lower than the ceiling set by law and whose pension is not sufficient to guarantee them a dignified life. If the pension amount is below the minimum ceiling set annually by law, pensioners may be entitled to a supplement amount. If the pensioner's income or the household income are slightly higher than the minimum ceiling, the supplement amount can be partial.

Minimum income supplement is not portable to countries covered by European regulations for social security system coordination, but it can be portable to other Countries under certain conditions.

It should be noted that pensions under contribution-related calculation system (for workers first insured as from 1^st January 1996) cannot be integrated to the minimum income supplement.

The following table shows the income ceilings, both for single and married pensioners, to benefit from the minimum income supplement.

Income ceiling for minimum income supplement - Employees’ pension fund

(article 6, law no. 638/1983)

B) PENSIONS STARTING DATE AFTER YEAR 1994
Year	married couple household’s income ceiling excluding minimum income supplement	married couple household’s income ceiling, allowing total minimum supplement	married couple household’s income ceiling, allowing total and partial minimum supplement, depending on pension amount
2019	over € 26,676.52	up to € 20,007.39	from € 20,007.39 up to € 26,676.52
2020	over € 26,783.64	up to € 20,087.73	from € 20,087.73 up to € 26,783.64
For pensions, with a starting date after 1994, payed, to married couple household’s not legally and effectively separated, the minimum income supplement is not due if the pensioners: -    have their own income higher than 2 times the minimum annual amount equal to 13 times the monthly amount in force on 1st January, or -    have a cumulated income, with the spouse, higher than 4 times the aforementioned annual minimum (Article 2, paragraph 14, Law No. 335 of 8th August of 1995).

Social allowance (Assegno sociale)

(Article 3, paragraph 6, Law No. 335/1995)

As from 1^st January 1996, the social allowance replaced the social pension.

The social allowance is a welfare-based benefit that completely disregards the payment of contributions and is paid, upon application submission, to elderly Italian and foreign citizens who are in difficult economic conditions.

The entitlement to benefits is based on the assessment of personal income, for unmarried citizens, and of the family income with that of the spouse, for married citizens.

The social allowance is temporarily granted, since an annual verification of the income requirements and actual residence in the State is carried out. It does not revert to surviving family members (it does not entitle the beneficiary’s heirs to a survivor pension) and is not exportable, therefore it cannot be paid abroad. A stay abroad lasting longer than 29 days entails its suspension. After one year from suspension, the social allowance is cancelled.

If the beneficiary is hospitalized in institutions or communities with fees paid by public bodies, the social allowance is reduced up to a maximum of 50%.

The social allowance is not subject to IRPEF tax (tax on personal income).

To be entitled to the social allowance, the following requirements have to be fulfilled:

·         67 years old;

·         state of financial need;

·         Italian citizenship (and Republic of San Marino citizens);

·         for EU citizens[113], Swiss citizens and citizens of the European Economic Area: registration after three months of stay in the national territory under the conditions set out in articles 7 and 9 of Legislative Decree no. 30 of February 6, 2007;

·         for non-EU citizens, EC residence permit for long-term residents (ex-residence card);

·         actual and habitual residence in Italy;

·         continuous legal residence for at least 10 years in the national territory;

·         Foreigners or stateless persons who have political refugee or subsidiary protection status and their respective spouses: they must possess, at the time of application, the documentation assessing the status of political refugee or admitted to the status of subsidiary protection.

Social pension and social allowance amounts

The payment of the allowance starts from the first day of the month following the application, if all the requirements established by law are fulfilled.

The maximum allowance for 2019 is 457.99€ per month (for 13 months); for 2020 is 459.83 € per month (for 13 months). The actual amount is equal to the difference between the annual social allowance amount and the annual income (2019: 5,953.87€ per year; 11,907.74€ if married – 2020: 5,977.79 € per year; 11,955.58 € if married).

SOCIAL ALLOWANCE INCOME CEILINGS AND CALCULATION OF THE MONTHLY AMOUNT
Anno	for single household (RC*)		for married couple household’s (RP**)
	Yearly income (RC)	Monthly amount (RC)	Yearly income (RP)	Monthly amount (RP)
2019	Zero	457.99	Zero	457.99
	> 5,953.87	Zero	> 11,907.74	Zero
	< 5,953.87	(5,953.87 – RP) / 13	< 11,907.74	(11,907.74 – RC) / 13
2020	Zero	459.83	Zero	459,83
	> 5,977.79	Zero	> 11,955.58	Zero
	< 5,977.79	(5,977.79 – RP) / 13	< 11,955.58	(11,955.58 – RC) / 13

*RP = couple income (married pensioner)

**RC = Single income (unmarried pensioner)

Fourteenth month payment (Quattordicesima)

(Article 5, paragraphs 1-4, Law Decree No. 81 of 2^nd July 2007 - Law No. 127 of 3^rd August 2007)

It is an additional annual sum paid to pensioners entitled to one or more retirement benefits from the compulsory general insurance (AGO) scheme or from the replacing, excluding and integrating the AGO Scheme.

Interested retirement benefits:

-   old-age pension;

-   early retirement benefits;

-   ordinary disability allowance and disability pension;

-   survivors' pension.

Age requirements

Beneficiaries shall be at least 64 years old.

Means-testing and benefit amount

The benefit amount depends on the beneficiaries’ credited contributions and on their annual income, (only personal income is considered), which must be, in relation to the years of contribution, lower than the limits below:

2020 (monthly minimum pension (TM) € 515.07- Annual minimum pension (TM) € 6,695.91)
Years of contribution		Yearly TM x 1.5	from yearly TM x 1.5 up to yearly TM x 2
Employees	Self-employed workers	Up to € 10,043.87	from € 10,043.88 to € 13,391.82
< 15 years (< 780 ctr.)	< 18 years (< 936 ctr.)	€ 437.00	€ 336.00
> 15 < 25 years (> 781 < 1,300 ctr)	> 18 < 28 years (> 937 <1,456 ctr.)	€ 546.00	€ 420.00
> 25 years (>1,301 ctr.)	> 28 years (>1,457 ctr.)	€ 655.00	€ 504.00

Social supplement (maggiorazione sociale)

(Article 1, Law No. 544 of 29^th December 1988, integrated by Article 70, Law No. 388/200 and by Article 38, Law No. 44/2001)

It is a welfare-based supplement of the pension. It is paid to disadvantaged people, beneficiaries of direct pension (old age, inability and invalidity ordinary allowance) and of survivors’ pensions, including pensions with an amount higher than the minimum pension. Regardless the nationality, if entitled to the social supplement providing that their personal and family income does not exceed the ceiling set for by law and they satisfy the age requirements. Unlike pensions, which are adjusted every year, the social supplement is fixed and exempt from personal income tax.

The social supplement amounts differ in relation to the age requirements:

Social supplement and its increase*
Age	Monthly amount (€)
	supplement	increase	total
60	25.83	-	25.83
60 disable	25.83	110.61	136.44
64 disable	25.83	98.61	124.44
65	82.64	-	82.64
65/69 disable or with contibutions	82.64	41.80	124.44
70	82.64	41.80	124.44
75	92.97	31.47	124.44

* the social supplement increase, introduced as of 1^st January 2002, is paid to all the entitled pensioners upon completion of 70 years; it is paid to 60-year-old pensioners only if they are disable.

Income ceiling to be entitled to social supplement

Year	MIS €	AS €	Personal income ceiling €	Couple household’s income ceiling €
2019	6,669.13	5,953.87	8,442.85	14,396.72
2020	6,695.91	5,977.79	8,469.63	14,447.42

A - Single income ceiling = yearly minimum income supplement (MIS) + social supplement

B - Married couple household’s income ceiling = single income ceiling + yearly amount of social allowance (AS)

-    RP: pensioner's personal income to be considered for the social supplement.

-    RF: income of the spouse of the pensioner

-    P: amount of pension due in the year.

Tax Credit (Bonus fiscale)

(Article 13 of D.P.R. No. 917/1986, as modified by article 1, Law Decree No. 66/2014; this measure has been confirmed and become structured with articles 12, 13 and 15 of Law No. 190/2014 (Stability Law for 2015) and modified by Law No. 205/2017 (Budget Law for 2018))

The bonus consisting of a sum equal to maximum € 80 per month, € 960 per year, directly paid by the employer, as a tax withholding agent, on the employees’ payrolls, to reduce the tax wedge. It is granted in presence of specific income requirements.

Benefit amount

The bonus is calculated on the total yearly income[114], net of the income deriving from the main living house, not less than € 8,000 and not more than € 26,600. If the total yearly income is between € 24,600 and € 26,600, the credit is due for the part corresponding to the ratio between the amount of € 26,600, minus the total yearly income, and € 2,000.

Yearly Gross Income 2019   €	Yearly Bonus €
≤ € 8,000	0
> € 8,000 and ≤ € 24,600	960
> € 24,600 and < € 26,600	(€ 26,000-total income) x 960 : € 2,000
> € 26,600	0

The amount of € 960 is related to the number of days of employment and/or assimilated work deduction, which can be maximum 365.

The tax credit does not contribute to the income.

From July 2020, new income limits will come into force. Future changes provide for an increase in the bonus from the current € 80 to € 100 for those who already benefited from it. In addition, the audience will extend as the new income limits will be increased up to € 28,000.

Nothing to report

As already highlighted in the 2019 note, the methodology considers the employees’ data available in the Statistical Observatories databases on the INPS Portal, in the section "Wages and paid periods in the year". In particular, it has been considered the economic activity of the company where the worker has been working. The companies are classified on the basis of the ISTAT Ateco 2007 code.

According Article 65 of the European Social Security Code, it has been decided to refer to paragraph 6 (a). Therefore, the information on full-time male employees, qualified as workers on the basis of the 2007 Ateco Section - Manufacturing Activities (cod.C) - Division: Manufacture of Machinery and Equipment nec (code 28), have been taken out from the database.

For this Division the database information for 2019 (provisional data) are:

MANUFACTURING ACTIVITIES[115] 2019: full-time male worker	N. WORKERS IN THE YEAR	YEARLY WAGE	N. OF PAID YEARLY WORKING DAYS
Manufacture of electrical machinery and apparatus n.e.c.	162,618	4,731,361,034	47,521,876

On the basis of this information it has been possible to calculate the average yearly wage of a full-time male worker employed in the considered Division, taking into account that one working year corresponds to 312 working days.

The database, now, does not allow distinguishing the skilled worker from the unskilled one as it does not contain information on the task performed. Therefore, the wages of the two types of workers have been assessed based on the different average costs stated in the D.D. No. 56/2019 of the Ministry of Labour and Social Policies. The percent differential between the 1^st level worker (unskilled) wage and the 3^rd level one (skilled) stated in the Decree has been applied to the average wage recorded in the database.

Starting from the 2019 reference wages of € 27,947.26 (unskilled) and € 34,179.27 (skilled), respectively, the wage of the entire working life has been extrapolated backwards by applying the rates of change of the gross wages index for ULA (ISTAT) for the manufacturing sector.

In absence of the rates of change in the gross wages for older periods, a proxy was adopted consisting of the consumer price index change for the families of workers and employees, increased by 1.0%, the latter parameter estimated on the basis of the contractual dynamics of the last 20 years.