Employee Award
For employees who worked at the company’s workplace, Article 63 of Decree-Law 18/2020 (the “Cura Italia” Decree) provides for 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 number of days actually worked at the company’s workplace. This bonus provision is intended for employees who have continued to perform their work safely while complying with health and behavioral guidelines at their place of work.
Scope of Application for the 100-Euro Net Bonus
The allowance is available to employees whose income falls under Article 49, paragraph 1, of the Tuir: “Income from employment is that which derives from relationships involving the performance of work, in any capacity, as an employee 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, regardless of their job title, whether on permanent or fixed-term contracts, and whether working full-time or part-time (horizontal and/or vertical).
Consequently, the bonus is not available to trainees, interns, coordinated and ongoing 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 the paycheck.
Requirements to Be Met
The only requirement that must be met is that the total income from employment for the previous year must not exceed 40,000.00 euros.
The reference is the total income for IRPEF purposes for the previous year, that is, 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 Administration clarifies that “only income from employment subject to progressive IRPEF taxation should be considered, and not income subject to separate taxation or a substitute tax,” in accordance with Revenue Agency 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 jobs), and who continue to hold multiple employment relationships throughout 2020, must choose which employer they want to receive the tax credit from, 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 in 2019—one following another throughout the year—must, if they have not requested their current employer to adjust their income in their December paycheck, ensure that they report to the employer their total income from employment earned in 2019.
Employees who were hired during 2020 and were on the payroll in March 2020 must, for this purpose, report to their employer the income from employment they received in 2019.
Notifications may be submitted using a “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 calculating final pay.
Nature of the 100-Euro Prize
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