INPS Guidelines on Exemption from Social Security Contributions for Layoffs
- September 21, 2020
- Reading time: 4 min
Subject: Initial guidelines from INPS regarding the exemption from social security contributions for companies that do not apply for temporary layoff benefits
In a circular, INPS has provided initial guidance on the application of the provisions of Article 3 of Decree No. 104/2020, issued last August. As previously announced in the earlier circular, the aforementioned Article 3 grants employers in the private sector—excluding the agricultural sector—an exemption from paying the social security contributions for which they are liable, valid until December 31, 2020, provided that no new wage supplementation measures are requested under Article 1 of the aforementioned decree-law.
Employers eligible for the benefit
Employers who have already benefited, in May and June 2020, from wage supplementation measures under the regulations established in response to the COVID-19 epidemiological emergency (pursuant to Articles 19 through 22-quienques of Decree-Law No. 18/2020, converted, with amendments, by Law No. 27 of 2020, and subsequent amendments), which extended the measure to employers who requested wage supplementation periods occurring, even partially, after July 12, 2020, provided they applied for such measures prior to August 15, 2020 (the date of entry into force of Decree-Law 104/2020), or alternatively, requested after August 14, 2020, provided that the relevant start date falls on a date prior to July 13, 2020.
In order to verify compliance with the requirement that makes it possible to grant the exemption in question, it is necessary to refer to the individual INPS registration numbers assigned to employers based on their respective social security classifications.
Consequently, the amount of the exemption may be claimed up to the limit of the social security contributions due for the same employee identification numbers for which the benefits referred to above were claimed. Furthermore, employers who opt for this exemption may no longer apply for the new wage supplementation benefits referred to in Article 1 of Decree-Law No. 104/2020 (the principle of alternativity applies).
Scope and extent of the exemption
The amount of the exemption is equal to—without prejudice to the rate used to calculate pension benefits—the unpaid contributions corresponding to twice the number of hours of wage supplementation received in May and June 2020, excluding premiums and contributions due to INAIL.
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