Bonus for Employees

For employees who performed their work activity at the company's workplace, Article 63 of Legislative Decree 18/2020 (Cura Italia Decree) established a net bonus of Euro 100.00 in the payslip, which is recognized as a one-off payment, starting from April's remuneration and in any case by the deadline for year-end adjustment operations, and is to be proportional to the days actually worked at the company premises. This bonus provision is aimed at employees who continued to perform their work activities safely, in compliance with health and behavioral regulations, at their workplace.

Scope of Application of the Net 100 Euro Bonus

The bonus is due to holders of employment income as per Article 49, paragraph 1 of the TUIR: "Employment income refers to income derived from relationships involving the provision of work, with any qualification, under the dependence and direction of others, including home-based work when considered subordinate employment according to labor legislation." Therefore, it applies to all types of employees, with any qualification, on permanent and fixed-term contracts, full-time and part-time (horizontal and/or vertical).

Consequently, the bonus is not due to interns, trainees, coordinated and continuous collaborators, or VAT-registered individuals.

For domestic workers (caregivers and housekeepers), since the employer is not a tax withholding agent, the bonus cannot be disbursed via the payslip.

Constraints to be Met

The only constraint to be met is that the total employment income for the previous year must not exceed Euro 40,000.00.

The reference is to the total income for IRPEF purposes for the previous year, i.e., tax year 2019. This income would be that declared in the 2020 Form 730, which, however, has not yet been submitted or completed by taxpayers; therefore, the amounts indicated in fields "1" and/or "2" of the tax data on page 1 of the Certificazione Unica will be considered.

The Financial Administration clarifies that "only employment income subject to progressive IRPEF taxation should be considered, and not also income subject to separate taxation or substitute tax," in coherence with the News of the Revenue Agency no. 28/E of 15/06/2016.

Workers who in 2019 had multiple employment relationships with different employers (e.g., because they held multiple part-time employment relationships), and who continue to hold multiple employment relationships also during 2020, must choose with which employer they want the bonus to be recognized, and to this employer, they will be careful to declare the totality of employment income subject to progressive IRPEF taxation for the year 2019.

Workers who held multiple consecutive employment relationships in 2019, if they did not request income reconciliation from their current employer in their December payslip, must communicate the totality of their dependent employment income earned in 2019 to the employer for this purpose.

Workers hired during 2020 and employed in March 2020 must, for this purpose, communicate their dependent employment income received in 2019 to their employer.

Communications can be made via a “Substitute Declaration in Lieu of an Affidavit” (pursuant to Article 47 of Presidential Decree No. 445 of 28 December 2000) (a template is attached).

Regarding workers dismissed within the month of the bonus payment, the bonus is due for the days worked at the workplace in March 2020. In the case of individuals who resigned or whose employment relationships terminated in March, the bonus is due only for the days worked at the workplace and will be included in the April payslip or, in any case, by the deadline for calculating final entitlements.

Nature of the 100 Euro Bonus

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