Bonus for employees

For employees who have performed their work activity at the company's workplace, Article 63 of Law Decree 18/2020 (Decreto Cura Italia) has established a bonus of Euro 100.00 net in the pay slip, which is recognized as a one-off payment, starting from the remuneration for the month of April and in any case within the deadline for carrying out the year-end adjustment operations, and to be proportional to the days of work actually carried out at the company's headquarters. The bonus rule is aimed at employees who have continued to carry out their work activity safely in compliance with health and behavioral regulations at their workplace.

Scope of application of the 100 euro net Bonus

The Bonus is due to those who earn income from employment pursuant to Article 49, paragraph 1 of the Consolidated Income Tax Act (TUIR): "Income from employment is that which derives from relationships having as their object the provision of work, in any capacity, under the direction of others, including work at home when it is considered employment according to the rules of labor legislation." Therefore, it concerns all types of employees, in any capacity, with permanent and fixed-term contracts, full-time and part-time (horizontal and/or vertical).

Consequently, the bonus is not due to trainees, interns, coordinated and continuous collaborators, and VAT number holders.

For domestic workers (caregivers and domestic help), since the employer is not a withholding agent, the bonus cannot be paid in the pay slip.

Constraints to be respected

The only constraint to be respected is the total income from employment of the previous year, which must not exceed Euro 40,000.00.

The reference is to the total income for Irpef purposes relating to the previous year, i.e. the 2019 tax year. The income would be that declared in the 730 form for 2020, which has not yet been presented or completed by taxpayers; therefore, the amounts indicated in fields "1" and/or "2" of the tax data on page 1 of the Single Certification will be taken into consideration.

The Financial Administration clarifies that "it is necessary to consider exclusively the income from employment subject to progressive Irpef taxation and not also that subject to separate taxation or substitute tax", in accordance with News Agency Circular no. 28/E of 15/06/2016.

Workers who in 2019 had multiple employment relationships with different employers (for example because they hold 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 they will take care to declare to them the totality of the income from employment subject to progressive Irpef taxation relating to the year 2019.

Employees who had multiple successive employment relationships in 2019, if they have not requested their current employer to adjust their income in the December pay slip, should communicate the total income from dependent employment earned in 2019 to the employer for this purpose.

Employees who were hired during 2020 and employed in March 2020 must communicate their income from dependent employment received in 2019 to their employer for this purpose.

Communications can be made with a “Substitute Declaration of Notoriety Act” (pursuant to Article 47 of Presidential Decree No. 445 of December 28, 2000) (a sample form is attached).

With regard to employees dismissed before the month the bonus is paid, the bonus is due for the days worked at the workplace in March 2020. In the case of persons who have resigned or whose employment relationship terminated in March, the bonus is only due for the days worked at the workplace and will be included in the April payroll or, in any case, within the deadline for the calculation of the final payments.

Nature of the 100 Euro bonus

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