IVS contribution exemption for working mothers 2024
- giorgiafrisenda
- February 9, 2024
- Reading time: 5 min
News . 6/2024
Article 1 of Budget Law No. 213/2023, paragraphs 180-182, introduced a 100% exemption from IVS social security contributions for female workers with permanent employment contracts for the pay periods starting January 1, 2024, under the following conditions and for the following duration: permanent employment contracts, under the following conditions and for the following duration:
Mothers of three or more children, until the youngest child reaches the age of 18, for the three-year period 2024-2026;
Mothers of two children, until the youngest child reaches the age of ten, introduced on a trial basis, for the period from January 1, 2024, to December 31, 2024, only.
Domestic employment relationships are excluded.
In its circular no. 27 of January 31, 2024, the INPS social security institute provided guidance and instructions for managing social security obligations related to the contribution exemption measure in question.
Employers who can recognize the exemption
The employment relationship subject to exemption may be maintained with:
private employers, including non-entrepreneurs;
agricultural employers;
public employers;
Employers of domestic workers are excluded.
Female workers who are eligible for exemption
All working mothers are eligible for exemption, with the exception of domestic workers, who have a permanent employment contract, whether full-time or part-time, including apprenticeships. If a fixed-term employment contract is converted to a permanent contract, the exemption may be legitimately applied from the month of conversion to a permanent contract.
The measure also applies to permanent employment relationships established in implementation of the association with a workers' cooperative pursuant to Law No. 142 of April 3, 2001.
Finally, given that hiring for temporary work is essentially equivalent to permanent employment, the contribution exemption in question also applies to permanent employment contracts for temporary work.
Female workers must be mothers of three or more children, the youngest of whom must be under 18 years of age;
on an experimental basis, for 2024 only, the exemption also applies to working mothers with two children, where the youngest is under 10 years of age.
The requirement is met on the date of birth of the third or subsequent child (and, for 2024 only, on the date of birth of the second child), with no loss of entitlement to the contribution reduction in question even in the event of the premature death of one or more children or the departure of one of the children from the family unit, or in the event that one of the children does not live with the family or is in the sole custody of the father.
Structure and extent of the exemption
The exemption is equal to 100% of the IVS social security contribution payable by the worker (9.19%), up to a maximum of €3,000 per year, to be recalculated on a monthly basis, without affecting the rate used to calculate pension benefits.
Conditions for entitlement to exemption
The exemption is equal to 100% of the contribution payable by the worker (9.19%), up to a maximum of €3,000 per year, to be recalculated on a monthly basis (3,000/12 = €250 maximum per month), thus having effect only up to a maximum annual salary of €32,644.18 (32,644.18 x 9.19% = €3,000).
For employment relationships to be established,
The exemption may take effect from the start of the employment relationship, provided that the conditions for its legitimacy are met.
For relationships established or terminated during the month,
The monthly exemption threshold of €250 must be re-proportioned by dividing €250 by 31 (250/31) = €8.06; the daily exemption thus determined will be multiplied by each day of contribution exemption.
The maximum threshold of €3,000 must be considered valid even in the case of part-time employment relationships, for which no recalculation of the amount of the exemption due is required.
If the worker has more than one employment relationship, she may avail herself of the exemption in question for each employment relationship.
The benefit is not intended as an incentive to hire and, therefore, is not subject to the application of the general principles on employment incentives established by Article 31 of Legislative Decree No. 151/2015. Furthermore, as it consists of an exemption in favor of the female worker only, the employer is not required to hold a DURC (certificate of social security compliance).
Coordination with other benefits
The contribution exemption in question is alternative to the exemption on the 6%-7% contribution payable by the worker provided for in Article 1, paragraph 15, of the 2024 Budget Law, and the exemption most favorable to the worker prevails.
The INPS specifies that, starting from the month following the use of one of the two exemption measures, it is possible to switch to the other exemption measure for the portion payable by the worker herself (for example, for a mother of two children, if the youngest child turns ten years old in 2024, provided that the conditions are met, from the month following the child's birthday, she may begin to benefit from the alternative 6% or 7% IVS exemption provided for in Article 1, paragraph 15, of the 2024 Budget Law).
Operating instructions
i datori di lavoro autorizzati espongono le lavoratrici per le quali spetta l’esonero valorizzando, a partire dalla denuncia Uniemens di competenza del mese di febbraio 2024, nell’elemento <Contributo>, la contribuzione dovuta calcolata sull’imponibile previdenziale del mese.
The reason codes established are:
“ELA3”, meaning “Exemption under Article 1, paragraph 180, Law No. 213/2023”, in cases where there are at least three children;
"ELA2," meaning "Exemption under Article 1, paragraph 181, Law No. 213/2023," in cases where there are two children.
L’elemento <IdentMotivoUtilizzoCausale>, deve essere presente due volte, valorizzato con il codice fiscale del primo e del secondo figlio, qualora si intenda usufruire del codice “ELA2”; oppure deve essere presente tre volte, valorizzato con il codice fiscale dei tre figli, qualora di intenda usufruire del codice “ELA3”.
The tax identification number of the youngest child must be provided.
If the worker is the mother of more than three children, it is sufficient to enter the tax codes of only three children, provided that the tax code of the youngest child is included.
Any exemptions due for January 2024 and February 2024 may be treated as arrears and reported in the Uniemens flows for the three months following the date of publication of News (March, April, and May 2024).
If employers have reported in the Uniemens flows for January 2024 or in the months of the child's birth, the exemption on the IVS quota provided for in Article 1, paragraph 15, of the 2024 Budget Law (6% or 7% exemption), the amount already adjusted must be refunded, taking into account the following elements:
The newly established "M054," meaning "6% refund on the relief provided for in Article 1, paragraph 15, of the 2024 Budget Law."
The newly established "M055," meaning "7% refund on the relief provided for in Article 1, paragraph 15, of the 2024 Budget Law."
Employers who have suspended or ceased their business activities and wish to take advantage of the exemption available to their former employees can use the regularization procedure (Uniemens/vig).
Finally, we would like to inform you that INPS is implementing an application on its institutional portal www.inps.it, where female workers can independently enter their children's tax codes.
We will update you as soon as INPS announces, in a specific message, how to access the system and how the information received by the Institute will be managed.
Please note that failure by the employee to provide her tax identification number will result in the revocation of the benefit, in accordance with the instructions that will be provided subsequently by the social security institution.
News :
Attachment: Facsimile declaration for communicating children's tax codes
References: News No. 27 of January 31, 2024
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