Renewal Agreement concerning the economic provisions of the CCNL for Executives in the Tertiary Sector

News No. 11/2023

Subject: Renewal Agreement concerning the economic provisions of the CCNL for Executives in the Tertiary, Distribution, and Services Sectors

On April 12, 2023, the renewal agreement for the CCNL for Executives in the Tertiary, Distribution, and Services Sectors was stipulated.

The social partners who stipulated the agreement are: the General Italian Confederation of Commerce, Tourism, Services, Professions, and SMEs – Confcommercio – Businesses for Italy, and Manageritalia – National Federation of Executives, Middle Managers, and Professionals in Commerce, Transport, Tourism, Services, and Advanced Tertiary Sector.

This agreement, which regulates the economic provisions of the relevant collective contract, must be considered in conjunction with the agreement of June 16, 2021, which regulates the normative provisions. It takes effect from January 1, 2022 (except for specific effective dates provided for individual institutions) and will remain in force until December 31, 2025.

Lump Sum

As salary arrears, a gross lump sum of €2,000.00 will be paid in three installments:

• €700.00 – with the salary for the month of May 2023;

• €700.00 – with the salary for the month of September 2023;

• €600.00 – with the salary for the month of November 2023.

The lump sum is disbursed to fully cover the period from January 1, 2020, to December 31, 2022, for executives employed as of April 12, 2023, including those appointed within the timeframe from January 1, 2020, to December 31, 2022.

This lump sum does not apply to Executives appointed from January 1, 2023.

For Executives hired or appointed between January 1, 2020, and December 31, 2022, and who are employed as of the date of this agreement's signing, the amount will be disbursed pro-rata based on the months of service seniority accrued in their role during the aforementioned period.

This amount is considered gross of ordinary contributions due and IRPEF, which will be calculated under separate taxation; it does not contribute to the calculation of severance pay (TFR) or any other contractual benefit. In the event of employment termination prior to the disbursement of the tranches, the total or remaining amount of the One-Off payment will be disbursed with the final settlement entitlements.

Adjustment of the Monthly Contractual Minimum and Salary Increases

Effective April 12, 2023, certain articles of the CCNL have been amended:

• “Art. 5 – Monthly Contractual Minimum Wage”

• “Art. 6 – Salary Increase”

• “Art. 21 – Professional Development and Training for Executives, Active Policies, and Outplacement (CFMT)”

• “Art. 21-bis – Welfare Services for Executives and Family Members (CFMT)”

• “Art. 25 – Supplementary Pension (Mario Negri Fund)”

In summary, the new contractual minimums are specified here:

• effective December 1, 2023, the monthly contractual minimum wage is set at euro 4,040.00;

• effective July 1, 2024, the contractual minimum wage is set at euro 4,190.00;

• effective July 1, 2025, the contractual minimum wage is set at euro 4,340.00.

For executives employed as of November 30, 2023, the increase in the monthly contractual minimum wage will be implemented through the payment of salary increases as follows:

• euro 150.00 monthly from December 1, 2023;

• euro 150.00 monthly from July 1, 2024;

• euro 150.00 monthly from July 1, 2025.

These increases may be absorbed, up to their full amount, by sums granted by companies as advances or prepayments on future contractual economic increases awarded after December 31, 2019.

Welfare Services

The parties have established an entity, named CFMT (Management Training Center for the Tertiary Sector), which is jointly managed and aims to offer companies and their executives training and professional development opportunities.

Training programs are available to executives free of charge.

• Training days selected by the company for the professional development and growth of its executives, including any associated travel and accommodation costs, will be borne by the company, and these days will be considered working days.

• Training days chosen by the executive will be at the individual participant's expense, including any travel costs, and these days will be deducted from the individual's annual leave entitlement.

Effective October 1, 2021, the annual CFMT contribution is euro 290.00 to be borne by the employer and euro 130.00 to be borne by the Executive.

For the years 2024 and 2025 only, the annual contribution will be increased by euro 50.00, of which euro 25.00 will be borne by the employer and euro 25.00 by the Executive. As a result of this increase, effective January 1, 2024, and January 1, 2025, the annual contribution will be euro 315.00 to be borne by the employer and euro 155.00 to be borne by the Executive.

These contributions will be provisionally remitted to the 'Mario Negri' Pension Fund, adhering to the criteria, methods, and systems established for the payment of contributions pertaining to the Fund itself.

Effective July 1, 2021, in the event of employment termination, including those followed by a settlement agreement or conciliation, and excluding cases of termination for just cause, disciplinary dismissal, voluntary resignation, or mutual termination, the employer shall pay a contribution of EUR 2,500.00 to the CFMT for the activation of outplacement procedures or for access to active labor market policy programs aimed at the re-employment of Executives.

To optimize and enhance the contractual welfare system, the CFMT is assigned support and organizational responsibilities for the implementation of a welfare platform for Executives in the Tertiary sector.

To this end, and on an experimental basis valid solely for the duration of this agreement, effective January 1, 2024, and January 1, 2025, a mandatory welfare contribution of EUR 1,000.00 annually has been introduced. This contribution is redeemable through the CFMT welfare platform within the scope of services and coverages defined by the Parties. The employer may credit additional amounts by signing a company regulation or agreement, provided these are of equal measure and for the benefit of all employed Executives.

The minimum contractual welfare value will be paid in addition to any flexible benefits schemes recognized by the employer.

The value of EUR 1,000.00 is recognized pro-rata in the event of hiring or appointment occurring during the reference year, for both indefinite and fixed-term contracts, whereas it is not subject to pro-rata adjustment if the executive is employed under a part-time contract.

Complementary Pension (Mario Negri Fund)

A complementary pension scheme is provided for Executives, supplementary to the mandatory INPS disability, old-age, and survivors' insurance and/or substitute mandatory funds, managed by the Mario Negri Fund.

As is already known, the ordinary contribution comprises the employer's contribution, amounting to 12.86% effective October 1, 2021, and the executive's contribution, amounting to 1%, both calculated on the conventional annual salary of EUR 59,224.54.

The supplementary contribution, as previously specified in our Flash News, including the contractual membership contribution share payable by the employer, amounts to 2.39% of the aforementioned conventional annual salary, effective January 1, 2023. This contribution will increase to 2.43% effective January 1, 2024, and to 2.47% effective January 1, 2025.

The ordinary company contribution, amounting to 4.13% of the conventional annual salary for executives hired with incentives, remains unchanged since 2018. It is noted that the Mario Negri Fund accepts, for complementary pension purposes, the severance pay (Trattamento di Fine Rapporto) separately, regardless of how it is conferred.

The 'Mario Negri' Pension Fund for Executives of Commercial, Shipping, and Transport Companies is governed by a specific statute and regulations agreed upon by the parties who stipulated the agreement subject to this News.

Reference: Renewal Agreement of April 12, 2023

News from the Firm:

News n_11 Renewal Agreement Economic Part CCNL Tertiary Executives.pdf

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