Award for Employees
- April 16, 2020
- Reading time: 6 min
For employees who have worked at the company’s workplace, Article 63 of Decree-Law 18/2020 (Cura Italia Decree) has established a bonus of €100.00 net in the paycheck, which is paid as a one-time payment, starting with the April paycheck and in any case by the deadline for year-end adjustments, and is calculated based on the days of work actually performed at the company’s workplace. This bonus provision is intended for employees who have continued to perform their work safely in compliance with health and behavioral guidelines at their workplace.
Eligibility for the €100 Net Bonus
The allowance is available to employees whose income falls under Article 49, paragraph 1, of the Tuir: “Income from employment is defined as income derived from relationships involving the performance of work, in any capacity, in the service of and under the direction of others, including work performed at home when it is considered employment under labor laws.” Therefore, it applies to all types of employees, in any capacity, whether on permanent or fixed-term contracts, full-time or part-time (horizontal and/or vertical).
Consequently, the bonus is not available to trainees, interns, coordinated and continuous collaborators, or individuals with a VAT number.
For domestic workers (caregivers and housekeepers), since the employer is not a withholding agent, the bonus cannot be included in their paycheck.
Requirements to be met
The only requirement that must be met is that the total income from employment in the previous year must not exceed €40,000.00.
The reference is the total income for IRPEF purposes for the previous year, i.e., the 2019 tax year. The income would be that reported on the 2020 Form 730, which, however, has not yet been filed 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 account.
The Tax Authority clarifies that "only income from employment subject to progressive IRPEF taxation should be taken into account, and not income subject to separate taxation or substitute tax," in accordance with Revenue News No. 28/E of June 15, 2016.
Workers who, in 2019, had multiple employment relationships with different employers (for example, because they held multiple part-time positions), and who continue to hold multiple positions throughout 2020, must choose with which employer they wish to claim the tax credit, and must report to that employer their total income from employment subject to progressive IRPEF taxation for the year 2019.
Employees who had multiple employment relationships throughout 2019 must, if they did not request their current employer to adjust their income in their December paycheck, ensure that they report to their employer the total amount of income from employment earned in 2019.
Employees who were hired in 2020 and were on the payroll in March 2020 must, for this purpose, report to their employer the income from employment received in 2019.
Notifications may be submitted using a “Substitute Declaration in Lieu of an Affidavit” (pursuant to Article 47 of Presidential Decree No. 445 of December 28, 2000) (a sample form is attached)
With regard to workers who were laid off by the end of the month in which the bonus is paid, they are entitled to the bonus for the days worked at the workplace in March 2020. In the case of individuals who voluntarily resigned or whose employment relationships ended in March, the bonus is payable only for the days worked at the workplace and will be included in the April paycheck or, in any case, by the deadline applicable for the calculation of final pay.
Nature of the 100-euro prize
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