IVS contribution relief for working mothers in 2024
- giorgiafrisenda
- Feb 9, 2024
- Reading time: 5 min
News No. 6/2024
Article 1 of Budget Law No. 213/2023, paragraphs 180-182, introduced for pay periods starting from January 1, 2024, a 100% exemption from the IVS social security contributions, borne by workers with permanent employment contracts, under the following conditions and duration:
Mothers with three or more children, until the eighteenth birthday of the youngest child, for the three-year period 2024-2026;
Mothers with two children, until the tenth birthday of the youngest child, introduced on an experimental basis, for the period from January 1, 2024, to December 31, 2024, only.
Domestic employment relationships are excluded.
The National Social Security Institute (INPS), with News No. 27 of January 31, 2024, has provided guidance and instructions for managing social security compliance related to the contribution relief measure in question.
Employers who can recognize the exemption
The employment relationship eligible for relief can be held with:
private employers, including non-entrepreneurs;
agricultural employers;
public employers;
employers of domestic employment relationships are excluded.
Female workers who can access the exemption
All working mothers can access the relief, with the exclusion of workers in the domestic work sector, who hold a permanent employment contract, both full-time and part-time, including apprenticeship contracts. If a fixed-term employment contract is converted to a permanent contract, the relief can be legitimately applied starting from the month of conversion to a permanent contract.
The measure is also applicable to permanent subordinate employment relationships established in implementation of the close associative bond with a workers' cooperative pursuant to Law No. 142 of April 3, 2001.
Finally, considering the substantial equivalence of hiring for the purpose of temporary work to subordinate employment relationships, the contribution relief in question is also due for permanent employment relationships for the purpose of temporary work.
The female workers must be mothers of three or more children, of whom the youngest is under 18 years of age;
on an experimental basis, for 2024 only, the relief is also due to working mothers with two children, of whom the youngest is under 10 years of age.
The fulfillment of the requirement is established on the date of birth of the third or subsequent child (and for 2024 only on the date of birth of the second child), and there is no forfeiture of the right to benefit from the contribution reduction in question even in the event of the death of one or more children or the possible exit of one of the children from the family unit or, again, in cases of non-cohabitation of one of the children or exclusive custody to the father.
Structure and extent of the exemption
The exemption is equal to 100% of the social security IVS contribution payable by the worker (9.19%), up to a maximum limit of €3,000 per year, to be re-proportioned on a monthly basis, while the rate for calculating pension benefits remains unchanged.
Conditions for entitlement to the relief
The exemption is equal to 100% of the contribution payable by the worker (9.19%), up to a maximum limit of €3,000 per year, to be re-proportioned on a monthly basis (€3,000/12 = €250 maximum per month), therefore producing an effect only up to the maximum annual salary of €32,644.18 (€32,644.18 x 9.19% = €3,000).
For employment relationships to be established,
the exemption may start from the establishment of the employment relationship, without prejudice to the existence of the legitimizing conditions.
For relationships established or terminated during the month,
the monthly relief threshold of 250 euros must be re-proportioned by dividing 250 euros by 31 (250/31) = 8.06 euros; the daily relief thus determined will be multiplied by each day of use of the contribution relief.
The maximum threshold of 3,000 euros must be considered valid also in the case of part-time employment relationships, for which a re-parameterization of the amount of the exemption due is not required.
If a female worker has multiple employment relationships, she can avail herself of the exemption in question for each employment relationship.
This concession is not intended as a hiring incentive and, therefore, is not subject to the application of the general principles regarding employment incentives established by art. 31 of Legislative Decree no. 151/2015; furthermore, since it consists of an exemption in favor of the female worker only, the employer is not required to possess a valid DURC.
Coordination with other concessions
The contributory exemption in question is alternative to the exemption on the contribution quota payable by the worker (6%-7%) provided for by the same Budget Law 2024 in art. 1, paragraph 15, and the more favorable exemption for the worker prevails.
The INPS specifies that, starting from the month following the utilization of one of the two exemption measures, it is possible to switch to the different exemption measure of the quota payable by the worker (for example, for a mother of two children, if during 2024 the youngest child turns ten years old, if the conditions are met, starting from the month following the child's age, she can begin to benefit from the alternative IVS exemption of 6% or 7% provided for by art. 1 paragraph 15 of the Budget Law 2024).
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 established causal codes are:
“ELA3”, meaning “Exemption art. 1, paragraph 180, law no. 213/2023”, in the case where there are at least three children;
“ELA2”, signifying “Exemption 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 code of the youngest child must be present.
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 exemption due for the month of January 2024 and February 2024 can be managed as arrears, and can be reported in the Uniemens flows for the three months following the date of publication of the News Inps (March, April and May 2024).
If employers have reported in the Uniemens flows for January 2024 or in the months of birth of the child, the exemption on the IVS quota provided for by art 1 paragraph 15 of the Budget Law 2024 (6% or 7% exemption), it is necessary to proceed with the return of the amount already adjusted, using the following elements:
“M054”, newly established, meaning “Return of 6% quota on the discount art. 1, paragraph 15, of the Budget Law 2024”
“M055”, newly established, signifying “Return of 7% quota on the discount art. 1, paragraph 15, of the Budget Law 2024”.
Employers who have suspended or terminated their activity and want to allow their former female workers to benefit from the exemption, can use the regularization procedure (Uniemens/vig).
Finally, please note that INPS is implementing an application on its institutional portal www.inps.it, in which female workers can independently enter the tax codes of their children.
We will update you when INPS announces, with a specific message, the access methods and how the information received by the Institute will be managed.
It should be noted that failure by the worker to communicate the tax codes will result in the revocation of the benefit used, according to the instructions that will be subsequently provided by the social security institution.
News from the firm:
Allegato: Fac-simile dichiarazione per comunicazione codici fiscali figli
Riferimenti: News Inps n. 27 del 31 gennaio 2024
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