OUTLINE ON MAIN CHANGES IN

THE SOCIAL SECURITY LEGISLATION

IN MEMBER STATES

PART I

ADMINISTRATION/ORGANISATION

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 tan overview of structures and functions:   

1	General Directorate (Headquarter): performs functions of direction, coordination, planning and control, for the implementation of its bodies’ regulations. It is divided into 15 central departments, 3 consultancy, study and research assignments, 3 national projects, 4 offices of professionals, 2 central offices and 3 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
115	103 Provincial Directorates and 12 Metropolitan Agencies: 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.
327	42 Complex Agencies and 285 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
80	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
418	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 to Regulations of public social security Institutions

Article 25 of the Legislative Decree No. 4 of 28^th January 2019 reintroduces the Board of Directors in the public social security institutions. It will be appointed by Decree of the President of the Council of Ministers, upon proposal of the Minister of Labor and Social Policies in consultation with the Minister of Economy and Finance.

The same article 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.^[2]

PRODUCTION PERFORMANCE ANALYSIS 2018

Gross production volume and the Productivity index

The productivity index, on 31^st December 2018 is equal to 138.63 homogenized points, on a national level, in line with the target value assigned for the reference period (124)[3].

Backlog index

The backlog index (expressed in days) at the 31^st December 2018 is equal to 46 days for the front office and to 136 for the back office[4].

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 Direzionale”, a directional 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 2018, an improvement of 7.02% (national average) in the service quality, in comparison with the previous year[5].

Data collection on “customer experience”

The Inps Performance Plan for the three-year period 2018-2020 includes a specific objective related to the “Improvement of the service to customers”. In this regard, Inps has carried out, during 2018, 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 2019 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.

ONLINE SERVICES

The Institute continues to improve the online service offering in order to achieve the exclusive use of the telematics channel for benefit claims.

The main access points to the Institute services are:

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 – via which provides users with update news and real-time information about its services and initiatives. On INPS YouTube channel are uploaded videos related to institutional communication and other activities.

Anyway customers can continue to be assisted by Institutional intermediaries namely Patronati (institutions for advise and social assistance), CAF (tax assistance centers), professional associations in order to access to online services.

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 modes[6].

In the area called “MyInps”, 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[7].

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 (MCC)

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.

Nothing to report

Nothing to report

B. BENEFITS

Social Security Cost

The expenditure for benefits managed by INPS for the year 2018[8] amounted to 320.3 billion Euro, of which 281 billion for pension benefits, included assistance benefits (social pensions and social allowance and benefits for civil disability) and 39.3 billion fortemporary economic benefits.

Each month INPS pays overall 20.8 million pensions for about 16 million beneficiaries, of which 7.6 million (48%) men and 8.4 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 81% 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 and civilian invalidity) are about 4 million, equal to 19% 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 34.8% of beneficiaries (equal to more than 5.4 million), receiving on average one or more pensions lower than gross € 551 per month, absorbs about 13.4% of the total annual expenditure, for more than 38 billion Euro. Among these beneficiaries, the 10.4%, equal to 1.6 million, receives an average pension amount lower than € 500.

About 3.4 million of pensioners, equal to 21.8% of the total, receive monthly  pension amounts between € 1,000 and € 1,500 and absorb about 17.5% of the annual pension expenditure (50.3 billion Euro), while an additional 18.4% of beneficiaries (about 2.8 million of pensioners) receive monthly pension amounts between € 1,500 and € 2,000, which is equal to 20.5% of the total expenditure.

About 17.4% (equal to 2.7 million) of beneficiaries receives a benefit gross amount between € 2,000 and € 3,000, absorbing 26.9% of the total gross expenditure, for a total higher than 77.2 billion Euro.

Finally, 1,189,370 beneficiaries, equal to 7.7% 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 62.1 billion Euro, and absorb 21.7% 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 27.7% of beneficiaries are women).

PART II MEDICAL CARE

PART III SICKNESS BENEFIT See Article 76

PART IV UNEMPLOYMENT BENEFIT See Article 76

PART V

BENEFIT ADJUSTMENT

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 16^th November 2018, issued by the Minister of Economy and Finance, in agreement with the Minister of Labour and Social Policies[9], sets out the annual pension adjustment of 1.1% on a final basis for the year 2018 and of 1.1% on a provisional basis for the year 2019.

Benefits	Monthly     amounts     2019 € Provisional Values	Monthly     amounts     2019 € Final Values
Minimum pension (TM)*	513.01	507.42
Additional Income Supplement (**)	136.44	136.44
Minimum pension + Additional Income Supplement	649.45	643.86
Annuity	292.43	289.24
Social Pension	377.44	373.33
Social Allowance	457.99	453.00

* TM: Trattamento Minimo

**Unchanged since 1° January 2008

Please note: the adjustment has been applied on gross amount of the current pensions at December 2018, starting from the minimum pension 2018 (TM) equal to 507.42 euros.

Article 1, paragraph 260, of the Budget Law for 2019, n. 145/2018, introduced a new mechanism of pensions adjustment for the three-year period 2019-2021.

PENSION ADJUSTMENT 2019

INCREASE FOR THE COST OF LIVING
As from	Amount brackets	Due adjustment in relation to the amount bracket	Adjustment	Benefit amounts
01/01/2019	Up to 3 times the TM*	100%	1.1 %	Up to € 1,522.26
	Guarantee bracket **			over € 1,522.26 up to € 1,522.76 amount guaranteed € 1,539.00
	over 3 up to 4 times the TM*	97%	1.067%	over € 1,522.26 up to € 2,029.68
	Guarantee bracket **			over € 2,029.68 up to € 2,034.10 amount guaranteed € 2,051.34
	over 4 up to 5 times the TM*	77%	0.847%	over € 2,029.68 up to € 2.537,10
	Guarantee bracket **			over € 2.537,10 up to € 2,544.04 amount guaranteed € 2,558.59
	over 5 up to 6 times the TM*	52%	0.572%	over € 2,537.10 up to € 3,044.52
	Guarantee bracket **			over € 3,044.52 up to € 3,046.19 amount guaranteed € 3,061.93
	over 6 up to 8 times the TM*	47%	0.517%	over € 3,044.52 up to € 4,059.36
	Guarantee bracket **			over € 4,059.36 up to € 4,060.25 amount guaranteed € 4,080.35
	over 8 up to 9 times the TM*	45%	0.495 %	over € 4,059.36 up to € 4,566.78
	Guarantee bracket **			over € 4,566.78 up to € 4,569.28 amount guaranteed € 4,589.39
	over 9 times the TM*	40%	0.44 %	over € 4,569.28

* TM (Trattamento Minimo): the Minimum pension

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

Otherwise, for the following benefits:

-          pensions as per Law No. 206/2004 and subsequent amendments (victims of terrorism and the slaughters);

-          welfare-based benefits and compensatory benefits (social pensions and social allowances, civilian invalidity benefits for amputees, blind and deaf and dumb people);

-          special supplementary benefit;

-          grants and ancillary allowances in connection with privileged pensions of first category, granted to former civil and military employees of public administrations;

adjustment is the following:

As from	Amount brackets	Due adjustment in relation to the amount bracket	Adjustment	Benefit amounts
				from	to
01/01/2019	Up to 3 times the TM*	100 %	1.1 %	-	1,522.26
	over 3 up to 5 times the TM*	90 %	0.99 %	1,522.27	2,537.10
	over 5 times the TM*	75 %	0.825 %	2,537.11	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”

-   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”

-   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"

-   Law No. 205, 27/12/2017, on the "Provisional Budget Law for 2018 and the three-year period budget of 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 multi-year budget for the 2019-2021 three year period”

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

Law Decree No. 4 of 28^th January 2019 (articles from 14 to 17), converted into Law No. 26 of 28^th March 2019, introduces, as of 1^st January 2019, the so-called "Quota 100” Pension, as well as new provisions on the early retirement requirements (pursuant to article 24, paragraph 10, Law Decree No. 201/2011, converted, with modifications, into Law n. 2014/2011) for both the workers in general and particular worker categories. Furthermore, it has extended the A.Pe. Sociale, the specific early retirement pension only for women so called “Opzione donna” and the provision on “early” workers retirement.

“Quota 100” pension

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

It is an early retirement, as per Article 14 of the above-cited Law Decree, introduced on an experimental basis for the three years period 2019-2021.

Beneficiaries

Workers registered with:

-          General Obligatory Insurance (AGO):

o   Pension Scheme 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:

­  62 years of age, to which the life expectancy adjustment doesn’t apply until 31^st December 2021[10];

­  38 years of contributions.

In order 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 in order 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

“Quota 100” pension starting date

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

·         Employees working for employers who are not public administrations;

·         Employees working for public administration[11].

Starting dates differ also in connection with the date in which the qualifying conditions have been satisfied.

For self-employed workers the starting dates are equal to those applied for employees working for employers who are not public administrations.

“Quota 100” pension starting date For employees working for employers who are not public administrations and self-employed workers
Requirements fulfilled	Starting date
No later than 31st December 2018	from 1st April 2019
As from 1st January 2019	After 3 months from the requirement fulfillment (deferred retirement, so called “finestra”)

“Quota 100” pension starting date For employees working for public administrations
Requirements fulfilled	Starting date
No later than 29th January 2019[12]	from 1st August 2019
As from 30th January 2019	After 6 months from the requirement fulfillment (deferred retirement, so called “finestra”)

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 No. 122 of 30^th July 2010, and subsequent amendments and integrations.

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

Age qualifying conditions
from 1st January 2018 to 31st December 2018	66 years and 7 months
from 1st January 2019 to 31st December 2020	67 years
from 1st January 2021	67 years*

(*) Requirement to adjust 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 insurance contribution qualifying condition at 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, age requirement as reported in the table above, provided that the 2019 pension amount is not lower than 686.99, namely 1.5 times the social allowance amount of € 457.99 (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 2019. 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 contributions.

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

Workers employed in the sectors of defense, safety and public aid namely civilian and military personnel of Police Forces, personnel of Armed Forces  including Carabinieri Corps and the national Fire Corps.

Age and contribution requirement

The age requirement varies in connection with the workers’ grade, order and qualification.

As from 1^st January 2019 the age requirement is increased by 12 months.

Defense, safety and public aid sector
from 1st January 2018 to 31st December 2018	between 60 and 65 years
from 1st January 2019 to 31st December 2020	between 61 and 66 years
from 1st January 2021*	between 61 and 66 years*

* to be adjusted according life expectancy increase as from 1^st January 2021.

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

EARLY RETIREMENT BENEFIT

Early retirement benefit is social security economic benefit paid, on request, to employees and self-employed, 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.

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

Contribution requirement reduction and starting date modification

Article 15 of Legislative Decree No. 4 of 28^th January 2019, replacing paragraph 10 of Article 24 of Legislative Decree No. 201 of 6^th December 2011[13], sets out the disapplication of life expectancy adjustment 2019 (five-month increase) to the contribution requirement for early retirement pension; the same article introduces new provision on the early retirement pension starting dates as well.

According to these new provisions, workers who satisfy the above-cited contribution requirement between 1^st and 29^th January 2019 (the date in which the Law Decree entered in force), are entitle to retire as from 1^st April 2019. The other workers, instead, are entitled to retire with 3 months deferral, after satisfying the contribution requirement (c.d. finestra).

Early retirement pension – Starting dates according to new provisions introduced by article 15, Law Decree No. 4 of 28th January 2019
Date of entitlement	Starting date of the early retirement pension
between 1st and 29th January 2019	from 1st April 2019
from 30th January 2019	After 3 months from the requirement fulfillment (deferred retirement, so called “finestra”)

Contribution requirement

Because of the above-cited article 15 of Legislative Decree No. 4 of 28^th January 2019, from 1^st January 2019 to 31^st December 2026, the adjustment according life expectancy increase doesn’t apply to contribution requirements.

1. 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:

2. Workers insured starting from 1^st January 1996

a)   according only to the contribution requirement:

In order to satisfy the contribution qualifying condition, any kind of paid or accrued contribution is taken into account, with the exception of 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 63 years and 7 months in 2018 and of 64 years in 2019, provided that at least 20 years of contribution have been effectively paid* and the monthly amount of the first pension payment is not lower than € 1,268.4, for 2018 and € 1282.37, for 2019 (2.8 times the monthly amount of the social allowance € 453.00, for 208 and € 457.99, for 2019).

*without considering periods of deemed contribution

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

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

Age and contribution requirements

1.           Upon reaching in 2018 40 years and 7 months of contribution and 41 in 2019, regardless of the age;

2.           upon reaching at least 35 years of contribution and with a minimum age of 57 years and 7 months, in 2018, and 58 in 2019*;

3.           upon reaching the maximum period of contribution (corresponding at the rate of 80%) with at least 53 years and 7 months of age, in 2018, and 54 in 2019*. This solution has been now overcome by the introduction of the contribution-related calculation system also for contributions from 2012, unless the above cited rate of 80% has been already reached on 31^st December of 2011.

*to be adjusted to life expectancy increase as from 1^st January 2021

For personnel entitled to early retirement pension 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 pension for particular categories of workers

Early 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 stated that this contribution requirement shall not be adjusted according to life expectancy increase up to 31^st December 2026.

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[14]. Workers must have stopped receiving social buffers since at least three months;

b)   being a caregiver, at the moment of the application and since at least 6 months, of the spouse or for a cohabitant 1^st degree  relative suffering from severe disability[15]. 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 invalidity[16] 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[17] 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[18] (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 pension 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 the pension starting date and the date in which, the contribution requirement for early retirement pension 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 (c.d. finestra).

Earlyretirement pension for workers employed in arduous tasks[19] (lavoratori che svolgono mansioni usuranti)

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

(Article 1, paragraph 148, lett. b) Law No. 205/2017, Budget Law for 2018)

 

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 performed arduous task and to scheme, 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 pension only for women (so called “Opzione donna”)

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

Female workers, 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.

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

Starting date

The pension starting date varies in connection with the female 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.

Particular typologies of early retirement pension

A.Pe Sociale (Benefit to anticipate the old-age pension)

(Article 1, paragraphs 199-205, Law n 232/2016)

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

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

Article 18, Law Decree No. 4/2019 has extended the measure up to 31^st December 2019 and, for the same year, has increased the funding.

Since the Legislative Decree No. 4/2019 acknowledged this measure without interruption compared to the past, also workers, who have fulfilled the requirements[20] 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[21], can resubmit the application thereof.

Beneficiaries

Employed and self-employed registered with the General Compulsory Insurance Scheme (AGO) and with schemes axcluding 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 and at least 30 years of contribution in presence of the following conditions:

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 provided that 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 moment 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 they too suffer from disabling diseases or they are dead or they are missing.

 

- 63 years old and at least 36 years of contributions in presence of the following condition:

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[22]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 A.Pe. 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 pension monthly amount calculated at the time of 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 buffers 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.

A.pe. Volontario (a bank Loan guaranteed by the pension)

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

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[23].

The loan is also insured against the risk of death, therefore, in the event of benficiary'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.

A.Pe. 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[24] 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.

PENSION CALCULATION

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 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 basis of 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.

Bilateral Agreement on social security

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 have been finalized jointly by the two Parties and are currently in the process of being published on the INPS IT claim processing platform. The above, with a view to enhance the speed and accuracy of the information exchanged and the exercise of the opt-out right as provided for under the Agreement between Italy and the former Yugoslavian Republic.

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.

Negotiations with Israel are going to be resumed in the near future with a view to finalize the relevant Administrative Arrangement and the bilingual liaison forms for the smooth implementation of the Agreement which had entered into force in December 2015.

The renegotiation of bilateral Agreements currently in force with the United States as well as the  ratification of the bilateral Agreements already signed with Chile and New Zealand, continue to be in the future agenda.

The INPS has continued to be directly involved in negotiating MOUs with the Agreement Partners’ Institutions in view of implementing electronic exchange of data to enhance communication and administrative procedures with the aim of reducing paper filing and making the relevant application forms more user-friendly for customers.

Nothing to report

STATISTICAL DATA

ARTICLE 74

Title I

A.	Number of employees ensured INPS (year 2018) Article 27 (a) - (Source: INPS, Budget 20189	14,452,400
B.	Total number of employees  (average 2018) (Source: ISTAT)	17,896,000
C.	Percentage between number of INPS employees ensured (A) and total employees (B)	80.76%

ARTICLE65

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

Title III

NOTE ON THE REFERENCE WAGE

Back to Title III                                                                    Back to Statistical data Title I

As already highlighted in the 2018 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 2018 are the following:

MANUFACTURING ACTIVITIES[25] 2018: full-time male worker	N. WORKERS IN THE YEAR	YEARLY WAGE	N. OF PAID YEARLY WORKING DAYS
Manufacture of electrical machinery and apparatus n.c.a.	159,797	4,593,107,942	46,639,392

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. 37/2018 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.

ARTICLE 65

Title VI

1.    Change in consumer prices[26]
Period of reference	Consumer prices index for both employees and blue collar workers household (without tobaccos)
A.       end of period 2017 (monthly average)	€ 101.1
B.       end of period 2018 (monthly average)	€ 102.2
C.       percentage B/A	1.1%
2.    Change in wages[27]
Period of reference	Gross wages index for annual work units (Unità Lavorative Annue (ULA))
A.       year 2017 (quarterly average)	€ 101.20
B.       year 2018 (quarterly average)	€ 102.00
C.       percentage B/A	0.79%
3.    Change in pension benefits (minimum income)
Period of reference	Minimum pension income
A.       beginning of period 2017 (monthly amount)	€ 501.89
B.       end of period 2018 (monthly amounts)	€ 507.42
C.       percentage B/A	1.1%

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[28] (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)

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 2019 monthly income ceilings necessary to be entitled to the benefit are the following:

€ 722.49 for spouse, single parent, each child or equivalent;

€ 1,264.36 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 2019, in the full measure, is equal to € 144.42 (paid for 13 months) if the ISEE is equal to € 8,745.26.

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

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).

The Municipality, who granted the benefit, is competent to control and, where necessary, to withdraw benefits.

Family allowance for family unit granted by Municipality
Year	Monthly amount €	Yearly amount €
2018	142.85	1,857.05
2019	144.42	1,877.46

Bonus for public and private nursery attendance

Forms of support at one’s own house

(Buono per la fruizione degli asili nido)

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

(Article.1, paragraph488, Budget Law for 2019, No. 145 of 30 December 2018)

Article 1 of the 2017 Budget Law^[29] 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 nursery attendance fees both in public and private authorized structures[30]. This allowance was also granted for “forms of support at one’s own house” 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.

In order to help families:

-      paying the fees relating to the attendance of both public and private authorized nurseries. Parents shall pay in advance the nursey fees which will be then partially reimbursed;

-      introducing support forms at one’s own house for children under the age of three, suffering from serious chronic illnesses. Parents receive a single annual payment and they must cohabit with the children who the benefit is applied for.

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[31] are equivalent to Italian citizens);

-      Third country’s citizens with a EU residence permit for long-term residents[32]

-      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^[33].

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

Benefit Amount

As from 2019, the benefit annual amount is € 1,500.00.

For the nursery attendance, the above-cited annual amount is paid on a monthly basis, for 11 months; so, the maximum monthly amount is equal to € 136.37. Who paid the nursery attendance monthly fees will be directly reimbursed, upon payment documentation.

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, coo. 356 and 357 of the 2017 Budget Law (so-called childhood bonus).

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 nursery attendance), regardless of the number of monthly payments received.

For forms of support at one’s own house,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[34]and in order of online application submission.

Nothing to report

Nothing to report

Family benefits

STATISTICAL DATA

ARTICLE 74

TITLE I

A.	Number of employees ensured INPS (year 2018) Article 41 (a) (Source: INPS, Reporting 2018-Provisional data)	14,408,000
B.	Total number of employees (2018) (Source: ISTAT, Workforce survey)	17,896,000
C.	Percentage between number of INPS employees ensured by INPS (A) and total employees (B)	80.5%

The family unit allowance for employees having household without children are reported in the following Table 1  -  2018: 1^St July 2018 – 30^th June 2019

Table 1                                                                                     

FAMILY ALLOWANCE FOR FAMILY WITHOUT CHILDREN                                  Back to Title III 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

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

FAMILY ALLOWANCE FOR FAMILY WITHOUT CHILDREN                                   Back to Title III 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 2018
Yearly family income €			Allowance amount based on the number of members in the family - €
			2	3	4	5	6	7 Or more
fino a		13,743.02	46.48	82.63	118.79	154.94	191.09	227.24
13,743.03	-	17,178.02	36.15	72.30	103.29	144.61	185.92	216.91
17,178.03	-	20,613.02	25.82	56.81	87.80	129.11	180.76	206.58
20,613.03	-	24,046.69	10.33	41.32	72.30	113.62	170.43	196.25
24,046.70	-	27,481.01	-	25.82	56.81	103.29	165.27	185.92
27,481.02	-	30,916.67	-	10.33	41.32	87.80	154.94	175.60
30,916.68	-	34,351.01	-	-	25.82	61.97	139.44	160.10
34,351.02	-	37,784.66	-	-	10.33	36.15	123.95	144.61
37,784.67	-	41,218.31	-	-	-	10.33	108.46	134.28
41,218.32	-	44,653.31	-	-	-	-	51.65	118.79
44,653.32	-	48,088.33	-	-	-	-	-	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

The family unit allowance for employees having household with children under 18 years are reported in the Table 2, in the Annex_2019.

STATISTICAL DATA

A	Article 66, point 4, (b)
	Standard employee: Wage level 1 metal worker (unskilled)
	2018 YEARLY wage of a standard employee		€ 27,644.20
	MONTHLY wage of a standard employee (yearly wage/12 mths)		€ 2,303.68
B	Statistical data
	1.   Total amount of family benefits paid in 2018 for children under 18 years of age (Source: INPS, Reporting 2018-Provisional data)		€ 4,603,000,000
	2.   Total amount of benefits in kind		-
	3.   Total		€ 4,603,000,000
C	i)	Total number of resident children under 18 years of age in 2018 (Source: ISTAT, resident population at 1st January)	9,806,357
	ii)	B. 3. / A.xCi	1.7%

See Table 2 in the Annex_2019

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 Octobee 2018, n. 119 converted, with amendments, by Law 17^th December 2018, n. 136)

The Budget Law for 2018, paragraphs 248 and 249 stated that the allowance supporting the birth grant[35] 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 2019. 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[36] 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[37] is requested;

-   foreign citizens having the status of political refugee or subsidiary protection[38] are equivalent to Italian citizens.

Ministry of Labour and Social Policies[39] 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 monthly an annual allowance, whose extent depends on the ISEE value calculated taking into account the family income:

-          € 960 (€ 80 per month for 12 months), if the ISEE value does not exceed € 25,000 yearly;

-          € 1,920 (€ 160 per month for 12 months), if the ISEE value does not exceed € 7,000 yearly.

Financing

The birth grant is on the State Budget charge. For events occurring from 1^st January 2019 to 31^st December 2019, the spending limits are following[40]:

- € 204 million for 2019;

- € 240 million for 2020.

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.

With the exception of:

1) the period of birth/adoption (three years 2015-2017 or year 2018);

2) the grant duration (three year period or annual);

3) the spending limits;

4) the 20% increase in the case of a child subsequent to the first only for those born in 2019[41];

any other aspect of the birth grant ex Law No. 205/2017 is ruled by the provisions contained in Law No. 190/2014 and in the related documents.

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 2017 Budget Law states a bonus of € 800 to women who are pregnant or to mothers, in the event of birth or adoption of children as from 1^st January 2017. Upon claim of the future mother, INPS pays the bonus in a one-time 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[42] pre-adoptive foster[43].

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[44] 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[45];

-   non-EU citizens holding a long-term EU residence permit[46];

-   holders of a residence card permit for EU citizen’s family members (Italian or EU), who are not nationals of a member State[47];

-   holders of a permanent residence card permit for family members who are not nationals of a Member State[48];

-   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 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)

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^[49] 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

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 “Consolidated text on maternity/paternity” as modified by Article 8, paragraphs 6,7,8 and 13, Law No. 81 of 22^nd May 2017)

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[50] 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.

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.

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 2018 to 31^st December 2019;

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 2018 is equal to € 342.62, for five month for a total of € 1,713.10; for 2019 is equal to € 346.39, for five month for a total of € 1,731.95.

For 2018, the ISEE value is equal to € 17,141.45; for 2019 is equal to € 17,330.01.

Maternity allowance
Year	Monthly amount €	Yearly amount €
2018	342.62	1,713.10
2019	346.39	1,731.95

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

MATERNITY BENEFITS

Article 74, title I

A.	Number of employees ensured INPS (2018) art. 48 (a) – (Source: INPS, Preliminary Budget 2019)	14,447,100
B.	Total number of employees (2018) – (Source: ISTAT, Workforce Survey)	17,896,000
C.	Percentage between number of INPS employees ensured (A) and total employees (B)	80.00%

Article 74, title II

Total number of resident (year 2018)[51]                                              60,483,973

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 145/2018)

The 2019 Budget Law introduced an incentive consisting of a social security contribution exemption 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 1^st January 2018 to 30^th June 2019:

-   master’s degree with a final score of 110 cum laude and with a weighted average[52]equal to at least 108/110,

­   within the official lenght 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[53] 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[54], 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 can be 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)

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[55]. Article 1 bis of Law Decree 87/2018, converted with modification into Law 96/2018, extended the social security contribution exemption also for 2019 and 2020.

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[56], which workers have to already fulfill at the moment 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)[57].

-   not to be employed with open-ended contract  by the same employer or by other employer during the whole working lifetime[58]. 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 an 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[59]. If there is a residual period, this can be combine with NEET (Not [engaged in] Education, Employment or Training), and “Mezzogiorno” employment incentives.

Social security contribution exemption for Southern Italy

(Incentivo occupazione Mezzogiorno)

(Directorial Decree of ANPAL (National Agency for Employment Active Policies) No. 2 of 2^nd January 2018 - Article 1, paragraph 247, Law No. 145/2018)

For recruitments with open-ended contract in 2018 made on the basis of the Directorial Decree of ANPAL n. 2/2018, a further incentive, consisting of a reduction payment of social security contribution, has been introduced with the aim of encouraging work relationship in "less developed" regions (Basilicata, Calabria, Campania, Puglia and Sicily) or "in transition" (Abruzzo, Molise and Sardinia).

This incentive has been extended also for 2019 and 2020.

Beneficiaries

Private sector employers who, in 2019^[60], hire unemployed workers with open-ended contract, also with part-time employment.

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[61].

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.

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.

“Youth Garantee” Program (“Bonus Neet”)

(Directorial Decree of National Active Labour Policies (ANPAL) No. 3 of 2^nd January 2018 and No. 581 of 28^th December 2018)

The Directorial Decree of National Active Labour Policies (ANPAL) No. 581 of 28^th December 2018, has extended for 2019 the social security contribution exemption for private employers who hire with an open-ended contract employment workers registered to the "National Operational Youth Employment Initiative project" (in short, "Youth Guarantee Program"). Hiring shall be made in the period from 1^st January to 31^st December 2019, within the limits of the economic resources specifically allocated.

Beneficiaries

According to Article 16 of the EU Regulation No. 1304/13, the Program is addressed to young people aged between 16 and 29, the so-called NEET (Not [engaged in] Education, Employment or Training, i.e. who are not currently engaged in either studies or training courses, in job’s start up,), who are unemployed.

Contract typologies

-   open-ended employment contract (also part-time);

-   professional apprenticeship contract

The exemption measure

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

Employers cannot benefit from the exemption in case of domestic work or discontinuous or occasional employment[62].

Employers have to mandatorily benefit from the exemption within 28^th February 2021.

Combination with other forms of social security contribution exemption

Wherever the the lawful conditions exist, this measure can be combined, for the residual part of the contribution on charge of the employer, with Social security contribution exemption for hiring young people (Esonero contributivo assunzione giovani).

Sgravio contributivo in favore delle imprese che assumano percettori di reddito di cittadinanza.

Article 8 of the Legislative Decree No. 4/2019, converted, with modifications, into Law No. 26 of 28^th March 2019, introduces contribution exemptions for employers who hire, with a full-time and open-ended contract employment, the beneficiaries of the Citizenship Basic Income (hereinafter, RdC).

In this case, the exemption from social security contributions payment (excluding those for financing work injury and occupational disease benefits) on charge of both employees and employers, is granted up to the RdC monthly amount received by the hired worker, within the monthly limit of € 780.

The exemption duration varies based on the number of RdC monthly payments already received by the hired worker.

To promote the inclusion in the labor market of the RdC beneficiaries, the accredited training institutions can stipulate a training Pact at the Employment Centers or at the employment agencies (referred to in article 12 of Legislative Decree No. 150/2015), where Regional provisions provides for it. The training Pact guarantees training courses or professional requalification to the RdC beneficiaries, also by involving Universities and public research institutions (article 8, paragraph 2, of Law Decree 4/2019).

Joint interprofessional funds for continuous training, as per article 118, Law No. 388 of 23^rd December 2000, can also stipulate the training Pact through specific public notices and prior agreement in the joint Conference.

If the working task of the hired RdC beneficiary is related to the training course followed on the basis of the aforementioned Training Pact, the contribution exemption, for the half of this extent up to a monthly limit of € 390, is granted to the accredited training institution, which guaranteed the training or professional requalification. The remaining part of the incentive, always up to a monthly limit of € 390, is granted to the employer, who hires the RdC beneficiary.

To be entitled to the contribution exemption, employers shall to comply with the following conditions:

realization of a net increase in the number of employees hired with an open-ended contract employment, according to the criteria in article 31, paragraph 1, letter f) of the Legislative Decree n. 150/2015, which refer exclusively to permanent employees;

­   compliance with other general principles for benefiting of incentives, as per article 31 of Legislative Decree No. 150/2015;

­   compliance with the contributory obligations, pursuant to article 1, paragraph 1175 of Law No. 296/2006, with other legal obligations, as well as with conventions and collective labor agreements – at national, territorial and corporate level - concluded by the most representative employers 'and workers' organizations of the State;

­  

­   compliance with the employment obligations, provided for in article 3, Law No. 68 of 12 March 1999, without prejudice to the situation of hiring a beneficiary of RdC, registered on the lists pursuant to the same law.

The incentive is consistent with the benefits pursuant article 1, paragraph 247, of the Law No. 145/2018, which are provided under specific national and regional operational programs, as well as complementary operational programs, for hiring unemployed workers with less than 35 years of age or with at least 35  years of age without a regularly remunerated employment from at least six months in the Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia regions.

The incentive can be granted within the limits and conditions stated by EU Regulations on State aids according to de minimis Scheme, namely No. 1407 of 18^th December 2013, No. 1408 of 18^th December 2013 (agricultural sector) and No. 717 of 27^th June 2014 (fisheries and aquaculture).

 

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 2019 annual maximum amount of the pensionable contribution is equal to € 102,543.00[63] 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 2019 is € 513.01.

The maximum contribution ceiling[64]for 2019 is equal to € 186,919.00 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 has to take into account for social security contribution calculation, cannot be lower than the remuneration amount annually established by laws, regulations, collective agreements or individual contracts, if it results in remuneration of a higher amount than the one provided for by the collective agreement[65].

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

The lower daily earnings ceiling for conventional remuneration is equal to € 27.07.

Since 1^st January 1993, an additional rate[66] of a percentage point applies on the worker remuneration quota, which exceed the limit of the first bracket of pensionable wage (€ 47,143.00); 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 € 47,143.00, equal to € 3,929.00 per month.

YEAR 2019	€
Minimum pension amount	513.01
Weekly limit for the accrued contributions (40%)	205.20
Yearly limit for accrued contributions, rounded to the nearest unit (€ 205.20 x 52)	10,670.00

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 2019 is € 2,132.39.

 TABLE 3

CONTRIBITION RATES                                                                                                                                                                                                                                                                                                                                          INDUSTRY in general (enterprises with maximum 15 employees)
CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S
CONTRIBUTION ITEMS		EMPLOYMENT STATUS
		Workers	Employees	Travellers door-to-door salesmen	Executives
Lower daily earnings limit		48.74	48.74	48.74	134.81
Pension Fund		33.00	33.00	33.00	33.00
New ordinary unemployment benefit (NASpI):
	Contrib. ex Article 24 Law No. 88/1989	1.31	1.31	1.31	1.31
	Contrib. ex Article 25 Law No. 845/1978	0.30	0.30	0.30	0.30
Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)		0.20	0.20	0.20	0.40
Unique Fund for Family Allowances (CUAF) (*)		0.68	0.68	0.68	0.68
Ordinary income support benefit (CIG)		1.70	1.70	1.70	-
Extraordinary income support benefit (CIGS)
Outplacement benefit
Sickness benefit		2.22	-	-	-
Maternity benefit		0.46	0.46	0.24	0.46
TOTAL (open-ended contract workers)		39.87	37.65	37.43	36.15
New ordinary unemployment benefit (NASpI) Additional Contrib. Article 2, paragraph 28, Law No. 92/2012
		1,40	1,40	1,40	1,40
TOTAL (fixed-term contract workers)		41,27	39,05	38,83	37,55
of which of employees’ share
Pension Fund		9,19	9,19	9,19	9,19
Extraordinary income support benefit (CIGS)		-	-	-	-
TOTAL of employees’ share		9,19	9,19	9,19	9,19
Exemption granted for the sector:	1.80%
(*) CUAF	2.48 - 1.80=0.68%
Note:                                                                                                                                                                   If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives). This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS.

                                                              

TABLE 4

CONTRIBITION RATES  INDUSTRY in general (enterprises with over 15 and less than 50 employees)
CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S
CONTRIBUTION ITEMS		EMPLOYMENT STATUS
		Workers	Employees	Travellers door-to-door salesmen	Executives
Lower daily earnings limit		48.74	48.74	48.74	134.81
Pension Fund		33.00	33.00	33.00	33.00
New ordinary unemployment benefit (NASpI):
	Contrib. ex Article 24 Law No. 88/1989	1.31	1.31	1.31	1.31
	Contrib. ex Article 25 Law No. 845/1978	0.30	0.30	0.30	0.30
Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)		0.20	0.20	0.20	0.40
Unique Fund for Family Allowances (CUAF) (*)		0.68	0.68	0.68	0.68
Ordinary income support benefit (CIG)		1.70	1.70	1.70
Extraordinary income support benefit (CIGS)		0.90	0.90	0.90
Outplacement benefit
Sickness benefit		2.22	-	-	-
Maternity benefit		0.46	0.46	0.24	0.46
TOTAL  (open-ended contract workers)		40.77	38.55	38.33	36.15
New ordinary unemployment benefit (NASpI) Additional Contrib. Article 2, paragraph 28, Law No. 92/2012
		1.40	1.40	1.40	1.40
TOTAL (fixed-term contract workers)		42.17	39.95	39.73	37.55
of which of employees’ share
Pension Fund		9.19	9.19	9.19	9.19
Extraordinary income support benefit (CIGS)		0.30	0.30	0.30	-
TOTAL of employees’ share		9.49	9.49	9.49	9.19
Exemption granted for the sector:	1.80%
(*) CUAF	2.48-1.80=0.68%
Note:                                                                                                                                                                   If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives). This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS.

 TABLE 5

CONTRIBITION RATES                                                                                                                                                                                                                                                                                                                                     INDUSTRY in general (enterprises with more than 50 employees)
CSC 1.XX.XX with C.A. 1S and CSC 1.13.06 - 1.13.07 - 1.13.08 with C.A. 3N and 1S
CONTRIBUTION ITEMS		EMPLOYMENT STATUS
		Workers	Employees	Travellers door-to-door salesmen	Executives
Lower daily earnings limit		48.74	48.74	48.74	134.81
Pension Fund		33.00	33.00	33.00	33.00
New ordinary unemployment benefit (NASpI):
	Contrib. ex Article 24 Law No. 88/1989	1.31	1.31	1.31	1.31
	Contrib. ex Article 25 Law No. 845/1978	0.30	0.30	0.30	0.30
Guarantee Fund for Severance Pay (TFR-Law No. 297/1982)		0.20	0.20	0.20	0.40
Unique Fund for Family Allowances (CUAF) (*)		0.68	0.68	0.68	0.68
Ordinary income support benefit (CIG)		2.00	2.00	2.00
Extraordinary income support benefit (CIGS)		0.90	0.90	0.90	-
Outplacement benefit
Sickness benefit		2.22	-	-	-
Maternity benefit		0.46	0.46	0.24	0.46
TOTAL		41.07	38.85	38.63	36.15
of which of employees’ share
Pension Fund		9.19	9.19	9.19	9.19
Extraordinary income support benefit (CIGS)		0.30	0.30	0.30	-
TOTAL of employees’ share		9.49	9.49	9.49	9.19
Exemption granted for the sector:	1.80%
(*) CUAF	2.48 -1.80=0.68%
Note:                                                                                                                                                                   If the employee allocates, totally or partially, the severance pay (TFR) to supplementary pension schemes or to the Treasury Fund, the employer can benefit, as a compensatory measure, of a contribution exemption equal to the percentage which would have been accrued as from the 1st January 2007, if the severance pay had not been allocated in the supplementary pension scheme or in the Treasury Fund (0.20%; 0.40% only for industrial executives). This exemption shall apply on contributions by considering a priority order: family allowances, maternity benefits, unemployment benefits and, lastly, on other contributions due to INPS.

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 terpsichoreans 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 2019, the upper annual earnings ceiling to be considered in order to determine both the contribution and benefit calculation basis, under Article 2, paragraph 18, Law No. 335/1995,is € 102,543.00.

The solidarity contribution rate[67] of 5% (2.50% for employers and 2.50% for workers), is applied only on the annual earning exceeding the aforementioned upper ceiling (€ 102,543.00).

The additional contribution rate[68] of 1% on charge of the worker, is applied on the annual earning exceeding, for 2019 € 47,143.00 (which divided in 12 months is equal to € 3,929.00) up to the aforementioned upper annual ceiling (€ 102,543.00).

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

The taxable upper daily ceiling earning is equal to € 748.00. Consequently, for 2019, the daily earning bands and the related upper ceilings are adjusted as follows:

Year 2019
Daily earning brackets		Taxable upper daily ceiling	Days of credited contribution
from €	to €	€
748.01	1,496.00	748.00	1
1,496.01	3,740.00	1,496.00	2
3,740.01	5,984.00	2,244.00	3
5,984.01	8,228.00	2,992.00	4
8,228.01	10,472.00	3,740.00	5
10,472.01	13,464.00	4,488.00	6
13,464.01	16,456.00	5,236.00	7
16,456.01	over	5,984.00	8

The solidarity contribution[69] 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 2019, € 151.00 up to the upper ceiling of the above-mentioned brackets.

Maternity and sickness contribution

For the year 2019, the upper daily earnings limit[70], 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 2019 the upper annual earnings ceiling, to be considered in order to determine both the contribution and benefit calculation basis[71] is € 102,543.00.

The additional contribution rate[72] of 1% on charge of the worker, is applied on the annual earning exceeding, for 2019, € 47,143.00 (which divided in 12 months is equal to € 3,929.00) up to the aforementioned upper annual ceiling (€ 102,543.00).

The Budget Law for 2018[73], has foreseen a gradual increase in the solidarity contribution rate[74], 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 € 102,543.00up to the annual amount of € 747,540.00.

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

The taxable upper daily ceiling earning is equal to € 329.00.

The Budget Law for 2018^[75], has foreseen a gradual increase in the solidarity contribution rate^[76], 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[77] is applied only on the daily earning exceeding the aforementioned upper daily ceiling of € 329.00 up to the daily amount of € 2,396.00.

The additional contribution rate of 1% on charge of the worker is applied on the daily earning exceeding, for 2019, € 151.00 up to the aforementioned upper daily ceiling (€ 329.00).

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[78], 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 2019, 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 € 15,878.00 starting from this minimum income and until the first bracket of yearly pensionable income, € 47,143.00 for 2019, 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 € 78,572.00 for workers already registered with the Scheme on 1^st January 1996; and € 102,543.00 for workers registered after 1^st January 1996.

The IVS contribution rate for 2019 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 47,143.00	24,00	24,09
	from 47,143.00	25.00	25.09
Holders of all ages and adjuvants/assistants under the age of 21	up to 47,143.00	21,45	21.54
	from 47,143.00	22.45	22.54

In the case of incomes higher than € 47,143.00 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.

The 2018 Budget Law has not introduced any changes in the facilitated system for social security contributions[79],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[80].

The 2019 Budget Law[81] 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 2019, it has been confirmed the 35% contribution reduction, due on the income not exceeding the minimum amount and on any income which exceeds, to persons already beneficiaries of the facilitated system for social security contributions in 2018, who have not expressly renounced to it and whereas the requirements for accessing the favorable tax system remain.

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 companies 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[82].

The contribution amount is determined by multiplying the conventional average income[83], determined[84], 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 is € 58.62[85].

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[86] 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 2018 for all regardless of the area and the age	24.0%	24.0%	24.0%	24.0%
As from 2019 for all regardless of the area and the age	24.0%	24.0%	24.0%	24.0%

For 2019, the additional contribution[88] is € 0.68 per day.

Contribution for pregnancy and maternity

The annual contribution[89] for covering the daily allowance for pregnancy and maternity is set at € 7.49[90] also for 2019; 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" which, for the year 2018, is equal to € 57.60)*	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 2019	Conventional remuneration
Measured on a daily basis	€ 27.07
Measured on a monthly (25 days x 27,07) basis	€ 677.00
Contribution rate	14.90%
Monthly contribution calculated by applying the contribution rate to the conventional remuneration	€ 100.87
Yearly maternity contribution (0,62 x 12)	€ 7.44

4.4 Self-employed workers of Special Fund

(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.

By the workers who are not already registered with other compulsory pension scheme or pensioners, the is due a contribution rate of 0.72%[91]in order to finance maternity, family allowances, sickness benefits and hospitalization and parental leave.

Article 7 of 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 the aforementioned law, the contribution rates, which have to be paid as from 1^st July 2018 by the client companies[92], to the special fund for self-employed, are determined as follows:

Code	Type of work relationship*	Contribution 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 2018	IVS 2019	Sickness, maternity and family allowance	Maternity	dis-coll	total 2018	total 2019
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

Budget Law for 2017[93], 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[94] 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 2019, the maximum annual income[95] is equal to € 102,543.00.

For 2019, the minimal income[96] is equal to € 15,878.00.

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 €
15,878.00	24	3.810,72
15,878.00	25,72	4,083.82 (IVS 3,969.50)
15,878.00	33.72	5,354.06(IVS 5,239.74)
15,878.00	34.23	5,435.04 (IVS 5,239.74)

 

Nothing to report

Nothing to report

Unlike social security benefits, based on insurance relationships and actually 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 in order 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 income (Reddito di Cittadinanza – RdC)

-   REI - Income For Active Inclusion

-   Citizenship pension (Pensione di Cittadinanza – PdC)

-   Minimum income supplement

-   Social allowance

-   Fourteenth month’s payment

-   Social supplement

-   Bonus - Tax credit

WELFARE-BASE BENEFITS

CITIZENSHIP BASIC INCOME AND BASIC PENSION (RdC)

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

Article 1 of Law Decree No. 4/2019 introduced as of April 2019 the Citizenship Basic Income^[97] (RdC) as a measure aimed at granting both economic support and social inclusion to families in need which runs side by side with a reintegration pathway into the labour market. The cash benefit is credited monthly into a new electronic card, so called RdC Card.

The benefit is granted upon submission of the 'Immediate Availability Declaration' (DID) made by all the family unit’s members and after having signed a valid proactive job search Agreement at the Employment offices.

Exemption from DID submission for people who are:

•      under 18

•      entitled to both the citizenship basic income and to a direct pension

•      entitled to the citizenship basic pension

•      aged 65 or older

•      disabled[98] unless a targeted employment is provided

•      already employed or attending a regular course of study or training.

The Employment Offices can also exempt people who are caregivers dealing with family members under 3 of age or severely disabled and not self-sufficient.

Beneficiaries

·         Italian and EU citizens

·         non-EU citizens holding a permanent residence permit

·         Non-EU citizens entitled to a permanent residence permit who are family members of an Italian, EU citizen or stateless person.

The applicant must have been residing in Italy for at least 10 years, the last 2 of which are on an ongoing basis.

Economic and patrimonial requirements

§  an ISEE (Equivalent Economic Situation Indicator value) of no more than € 9,360

§  real estate assets not over € 30,000, except for the house of residence

§  financial assets not exceeding € 6.000 for a single person family unit; € 8,000 for two-people family unit; € 10,000 for three-people family unit or more,  increased of € 1,000 for each child after the second one. The above cited limits are increased of € 5,000 for each family unit’s disabled member and of € 7,500 for each family unit’s severely disabled or dependent member;

§  family income not exceeding an annual limit equal to € 6,000 (€ 7,560 in case of PdC) timed by the relevant equivalence scale parameter for the purposes of RdC. In any case, the overall amount cannot exceed an annual ceiling of € 9,360 per year, timed by the relevant equivalence scale parameter, as per Declaration in Lieu of an Affidavit (DSU) for the purposes of assessing the ISEE. For the purposes of family income, welfare-based benefits, included therein are deducted; those in the course of payment to the family unit’s members are added up (excluding benefits based on a means-test and the so called Bonus bebè).

These requirements are automatically verified by the INPS based on the ISEE the claimant submitted.

The benefit amount

The benefit amount is given by the sum of a supplement to the family income (quota A) and a subsidy to pay the rent or mortgage (quota B), both calculated by the INPS procedure based on the information derived from the ISEE of the household. In particular:

§  Quota A, that is the income supplement, can be of an amount up to € 6,000 per year timed by the relevant equivalence scale parameter for the purposes of RdC, in case of citizenship basic income;

§  Quota B, granted as a rent subsidy for the residential house, cannot exceed € 3,360 per year, equal to € 280 per month for the citizenship basic income; if granted as a mortgage subsidy for the residential house, quota B cannot exceed € 1,800 per year equal to € 150 per month.

In any case, the overall amount cannot exceed a ceiling of € 9,360 per year, which is timed by the relevant equivalence scale parameter and reduced based on family income. The said overall amount cannot be lower than € 480 per year (€ 40.00 per month).

The amount granted as citizenship basic income is credited, on a monthly basis, on a Card managed by Poste Italiane[99]. By using this Card, beneficiaries can withdraw in cash € 100 per month as a maximum amount.

When and how long is paid the benefit for

The Citizenship basic income starts from the month following the application one and it is granted for a maximum period of 18 months[100], except in cases of benefit anticipated forfeiture, as per the Decree establishing the measure.  The benefit can be renewed for 18 more months upon condition that it is discontinued for one month before each renewal.

The family unit can be granted the citizenship basic income even if all the members are NASPI[101], or other social buffers for involuntary unemployment, recipients. RdC cannot be granted to unemployed people, who voluntarily resigned during the 12 months preceding the application, except in case of lawful resignation[102].

The family unit can be granted the citizenship basic income even if all the family members should be working.

Companies hiring beneficiaries of the citizenship basic income during the first 18 months of entitlement to benefit, are entitled to the relevant contribution exemption for no less than 5 months, with a ceiling of € 780 per month

To finance RdC a specific fund (Fondo per il reddito di cittadinanza) has been established.

The RdC will automatically switch to the basic citizenship pension (PdC) if all the family unit’s members are aged 67, or if the members are less than 67 years but with severe disability or non-self-sufficient.

ReI – Reddito di Inclusione (Income For Inclusion)

(Delegated Law on poverty (Law No. 33/2017 in force as from 25^th March 2017) and Legislative Decree 147/2017, as modified by the Budget Law for 2018 No. 205/2017))

ReI, a measure to combat poverty at national and global level, has been introduced as from 1^st January 2018; it is paid upon condition of the economic situation assessment (means-testing) and of adhesion to a personal-tailored project. It consists of:

a.    an economic benefit;

b.    services addressed to the person identified in the personal-tailored project, after have been assessed, on a multi-dimensional basis, the household needs; or, if the poverty is exclusively connected to the working situation, by the service agreement[103], that is, from the intensive research program of employment[104].

Requirements:

ReI is paid to households with the following requirements:

-   citizenship and residence requirement. Who applies for ReI shall be both:

-   EU citizen, or EU citizen familiar, holder of residence right or permanent residence right; or non-EU citizen having long-term resident's EU residence permit or stateless having a similar permit or holder of international protection (political asylum, subsidiary protection);

-   legally and continuously resident in Italy for at least two years at the application date;

-   family requirement (for applications submitted until 31^st May 2018. The household shall meet at least one of the following qualifying conditions:

o   one minor household member (less than 18 years of age);

o   one disabled household member with at least one parent/legal guardian;

o   one pregnant woman;

o   one unemployed household member aged 55 or more;

-   economic requirement. The household shall jointly have:

o   a currently valid ISEE value not higher than € 6,000;

o   an ISEE value for the purposes of Rei not higher than € 3,000;

o   a real estate value, different from the dwelling house, not higher than € 20,000;

o   a movable property value (deposits, bank accounts, and so on) not higher than € 10,000 (reduced to € 8,000 for two persons and to € 6,000 for a single person).

To be entitled to ReI, it is also necessary that each household members:

-   shall not be NASpI beneficiary or beneficiary of other social buffers benefit in case of involuntary unemployment;

-   shall not have cars and/or motorcycles first registered in the 24 months preceding the ReI application (cars and motorcycles, for which disabled persons benefit from tax relief, are excluded);

-   shall not have recreational crafts.

ReI payment is subject to the personal-tailored project signing.

ReI application submission and benefit starting date

ReI application shall be submitted to Municipalities and their districts which, after verifying the residence and the legal stay in Italy requirements, transmit it to INPS, within 15 days from the application date, for the assessment of the further requirements and benefit amount calculation.

The benefit starts on the month following the ReI application one.

Benefit duration

ReI is paid, by crediting monthly the amount on an electronic payment card (Carta ReI), for a maximum period of 18 months.

After the benefit has been entirely paid, a new ReI application can be submitted provided that it was been 6 months since the last payment; in this case, Rei maximum duration will be 12 months. 

Benefit amount

The benefit amount is calculated on an annual basis and increase the household resources up to a given threshold. This threshold is equal to € 3,000 which, upon first application, is covered only up to 75% (€ 2,250) and raises on the basis of the household members’ number (recalculated based on the equivalence scale), as indicated in the following table. The maximum amount cannot in any case exceed the social allowance annual amount, proportionated per month, increased by 10%. 

However, the ReI amount actually paid depends on other means-tested social buffer benefits and on income eventually received by the household (ISR in ISEE statement or income deriving from working activity). 

The Budget Law for 2018[105] has provided for a single annual payment if the benefit monthly amount is equal to or lower than € 20. Wherever the benefit amount was null because of receiving other benefit payment or income, the ReI application will be rejected. The application can be submitted again, without waiting for a determined time lapse, when the household economic conditions change. 

The 2019 Budget Law^[106] repealed ReI; therefore, as of March 2019, the benefit can no longer be requested and as of April 2019, it is no longer be granted or renewed. The last time limit for the ReI application was on 28^th February 2019.

Combination with working activity

ReI can be combined with working activity of one or more household members, if the household economic requirements[107], were satisfied. The household members, when apply for ReI, are required to inform INPS of any working activity not included in the currently valid ISEE statement. In case of changes in working situation during the benefit payment period, household members are required to inform INPS of the annual income deriving from the working activity, within 30 days from the activity starting date, through the form ReI – com, otherwise they lose the benefit.

ReI is inconsistent with social buffer payments also during the benefit perceiving.

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 below what it is considered the "minimum subsistence". For the year 2018 the monthly amount of the minimum income supplement is € 507.42; and 2018; the annual amount is € 6,596.46. For the years 2019 the monthly amount of the minimum income supplement is € 513.01; the annual amount is € 6,669.13.

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. In the event that 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 systems’ coordination but it can be portable to other Countries under certain conditions.

It should be noted that the possibility of minimum integration is excluded from the pensions matured entirely with the contribution system (granted by persons who were insured after 31 December 1995).

Below are the amounts of the minimum pension benefits and the related personal and married couple household’s income ceiling that affect the extent of the integration.

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
2018	over € 26,385.84	up to € 19,789.38	from € 19,789.38 up to € 26,385.84
2019	over € 26,676.52	up to € 20,007.39	from € 20,007.39 up to € 26,676.52
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, which means not related to contribution payment, and is a paid to applicants, both Italian and foreign citizens, who are in financial need.

The benefit entitlement is based on the assessment of the single household income, for unmarried person, and of the couple household’s income, for married people.

Applicants are entitled to social allowance on a provisional basis, because, each year, their personal income requirements shall be verified as well as their actual residence in Italy. The benefit payment cannot be transferred to survivors and is not portable; therefore, it cannot be paid abroad. A period of stay abroad exceeding 29 days entails the benefit suspension. One year following the suspension, the benefit is withdrawn.

If the applicant is hospitalized or living upon a community, fully on charge of the State, the social allowance amount is reduced to a maximum of 50%.

Social allowance amount is exempt from deductions of personal income tax.

Qualifying conditions

-          67 years of age;

-          Financial need status;

-          Italian citizenship (citizens of San Marino Republic are equivalent to Italian citizens);

-      EU, Swiss and EEE citizens[109], provided that, after three months of residence in Italy, they are registered with the Municipality population Register, under the conditions laid down in Articles 7 and 9 of Legislative Decree n. 30 of 6 February 2007;

-      Non-EU citizens, provided that they have a EU residence permit for long-term residents (former residence card).

-      Actual residence in Italy

-          continuous legal stay in Italy for at least 10 years;

-          Foreign or stateless persons with the political refugee status or entitled to subsidiary protection and their reunited spouses if, at the application time, they have the relevant documentation which defines them as political refugees or subsidiary protection beneficiaries.

Social pension and social allowance amount

The benefit payment starts from the first day of the month following the application submission, if all the qualifying conditions stated by law are satisfied.

The maximum monthly amount (13 months) is € 453.07, for 2018, and € 457.99, for 2019. The actual amount is equal to the difference between the total annual amount (€ 5,889.91 for 2018; € 11,778.00, if married - € 5,953.87 for 2019; € 11,907.74, if married) and the annual income amount.

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)
2018	Zero	453.00	Zero	453,00
	> 5,889.00	Zero	> 11,778.00	Zero
	< 5,889.00	(5,889.00 – RP) / 13	< 11,778.00	(11,778.00 – RC) / 13
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

*RP = couple income (married pensioner)

**RC = Single income (unmarried pensioner)

FOURTEENTH MONTH’S 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 scheme or from the replacing, excluding and integrating the AGO Scheme:

Beneficiaries of:

-   old-age pension;

-   early retirement pension;

-   invalidity ordinary allowance and inability 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 taken into account), which must be, in relation to the years of contribution, lower than the limits below:

2019 (monthly TM - minimum pension € 513.01)
Years of contribution		Yearly TM x 1,5		Yearly TM x 2
employees	self-employed	Up to € 10,003.70	between € 10,003.71 and € 10,104.69	between € 10,104.70 and € 13,338.26	Over € 13,338.26
< 15 anni (< 780 ctr.)	< 18 anni (< 936 ctr.)	€ 437.00	Max € 10,440.70	€ 336.00	Max € 13,674.26
employees	self-employed	Up to € 10,003.70	between € 10,003.71 and € 10,129.69	between € 10,129.70 and € 13,338.26	Over € 13,338.26
> 15 < 25 anni (> 781 < 1.300 ctr)	> 18 < 28 anni (> 937 <1.456 ctr.)	€ 546.00	Max € 10,549.70	€ 420.00	Max € 13,758.26
employees	self-employed	Up to € 10,003.95	between € 10,003.71 and € 10,154.69	between € 10,154.70 and € 13,338.26	Over € 13,338.26
> 25 anni (>1.301 ctr.)	> 28 anni (>1.457 ctr.)	€ 655.00	Max € 10,658.70	€ 504.00	Max € 13,842.26

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 monthly pension increase, which is welfare based. 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

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)

Year	MIS €	AS €	Personal income ceiling €	Couple household’s income ceiling €
2018	6,596.46	5,889.00	8,370.18	14,259.18
2019	6,669.13	5,953.87	8,442.85	14,396.72

-    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 BENEFITS

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 is a tax credit of maximum € 80 per month, € 960 per year; is granted to employees and assimilated workers, having specific income requirements. The employer, acting as a withholding agent and on the basis of specific income information, automatically credits the employee with the bonus in payroll.

conditions:

-          remuneration received by worker members of cooperatives;

-          payments and remuneration paid to employees by third parties for tasks they have performed;

-          Payments for scholarship or grant, award or subsidy for study or professional training purposes;

-          income deriving from coordinated and continuous collaboration relationships;

-          remuneration of priests;

-          pension benefits pursuant to Legislative Decree 21 April 1993, n. 124;

-          compensation for community services in accordance with specific regulatory provisions.

Benefit amount

The bonus is calculated on the basis of a total yearly income[110], 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.

The amount of € 960 is related to the number of employment and/or assimilated work, which can be maximum 365; as in the case of tax deductions from employment relationship, the bonus is related to the period of work during the year.

For 2018 and 2019, the total bonus amount is equal to € 960.00 (€ 80 per month for 12 months), according to the following income limits:

Yearly Gross Income 2018/2019   €	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

* provided that the gross income tax is higher than the deductions from work due.

The tax credit does not contribute to the income; the withholding agents, who have to evaluate the entitlement the related amount, based on the income data, automatically grant it.

Nothing to report

Nothing to report