Update on contribution rates following the reorganization of wage supplementation benefits
- July 22, 2022
- Reading time: 11 min
News . 29/2022
With the News . 76 of June 30, 2022 and the subsequent Message No. 2637 of July 1, 2022 , INPS provided operational instructions regarding the adjustment of the ordinary contribution due for the financing of wage supplements, taking into account the reform introduced in this area by Budget Law No. 234 of December 30, 2021.
As announced in our News January 18, 2022, Article 1, paragraphs 191 through 220, of Law No. 234/2021 has significantly amended the regulations governing social safety nets contained in Legislative Decree No. 148 of September 14, 2015.
In summary, starting with a social protection system based on the following wage-supplement benefits:
The CIGO (Ordinary Wage Guarantee Fund)
Bilateral Solidarity Funds
The FIS (Wage Supplement Fund)
The CIGS (Extraordinary Wage Guarantee Fund)
The regulatory framework has been reformed to expand the pool of workers eligible for social safety nets, on the one hand, and to broaden the pool of employers who may apply for social safety nets when certain conditions specified by law are met, on the other.
The result is a new regulatory framework that has expanded coverage, with the fundamental aim of ensuring social protection that is as comprehensive as possible.
The reform introduced by the Budget Law has extended, effective January 1, 2022, the relevant protections to workers with apprenticeship contracts of any type (including first- and third-level apprenticeships, that is, “dual” apprenticeships and advanced training and research apprenticeships) and to home-based workers.
It is confirmed, however, that executives are excluded from the scope of wage supplementation (in this regard, it should be noted that executives are eligible only for benefits from the Solidarity Funds and the related contribution obligations, provided that this is expressly provided for in the interministerial decrees establishing such funds, and provided that they are employed by employers required to contribute to those funds).
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