INPS contribution exemption of 0.80% in favor of employees
- Studio Piceci
- May 16, 2022
- Reading time: 3 min
Update: June 20, 2022
News Flash No. 22/2022
Subject: INPS contribution exemption of 0.80% for employees who have left, been hired, and/or rehired during the month
As already announced in our News January 18, 2022, Budget Law No. 235 of December 30, 2021, in Article 1, paragraph 121, provided for an experimental exemption of 0.80% on the portion of IVS contributions payable by workers for the year 2022 only.
This contribution exemption applies to all employees of public and private employers, regardless of whether or not the employers are entrepreneurs.
The subsidy applies during the fixed period specifically predetermined by the regulation in question (January 2022/December 2022), provided that the monthly salary limit, understood as taxable income for social security purposes, of €2,692.00 is respected, increased, for the month of December, by the accrual of the thirteenth month's salary. By express provision of the law, the rate used to calculate pension benefits remains unchanged.
With the May 2022 paychecks, the measure will be applied and the previous months (from January 2022 to April 2022) will be adjusted.
INPS Circular No. 43/2022 does not provide operational instructions with regard to the management of the various cases.
Pending further explanatory and operational guidance, the following particularities should be noted
1) Employment relationships terminated by April 30, 2022
For employment relationships that have already ended as of April 30, 2022, adjustments already made will be reopened in order to recognize this exemption (if applicable) for previous months for employees who are no longer employed. This may result in the need to pay the employee a net amount in their paycheck as a result of the adjustment.
2) Thirteenth month's salary, in the case of employees who have left the company
With regard to the calculation of the exemption on the thirteenth month's salary paid to employees who have left the company, INPS has clarified that it will be possible to access the reduction only if the relevant amount does not exceed €224.00 (equal to €2,692.00/12) in the month of payment.of €224.00 (equal to €2,692.00/12).
Therefore, in order to calculate the accruals for the thirteenth month's salary, the entitlement to exemption will be verified, based on the monthly limit of €224.00, for the accruals accrued.
3) Payment of sums after termination