INPS Guidelines on Exemption from Social Security Contributions for Layoff Benefits

Subject: Initial Guidelines from INPS on the Exemption from Social Security Contributions for Companies That Do Not Apply for 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 private-sector employers—excluding those in the agricultural sector—an exemption from paying the social security contributions for which they are liable, valid through 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 connection with 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, as subsequently amended), which provides for the extension of the measure to employers who requested wage supplementation periods occurring, even partially, after July 12, 2020, provided that they applied for such measures prior to August 15, 2020 (the date of entry into force of Decree-Law No. 104/2020), or alternatively, provided that the application was submitted 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 exemption amount may be claimed up to the limit of the social security contribution 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 exclusivity applies).

Structure and Scope of the Exemption

The amount of the exemption is equal—without prejudice to the rate used to calculate pension benefits—to 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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