Italy

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1919.

Current laws: 1995 (pension reform), 2005, 2008, 2009, 2010, 2011, 2012, and 2013.

Type of program: Notional defined contribution (NDC) and social insurance system.

Coverage

Notional defined contribution (NDC): All employed persons, including household employees, and certain self-employed persons, whose insurance period began on or after January 1, 1996.

Voluntary coverage for contract and professional workers not covered by any specific fund.

Special systems for public-sector workers and self-employed persons in the liberal professions.

Mixed social insurance and NDC: All employed persons, including household employees, and certain self-employed persons, with less than 18 years of contributions as of December 31, 1995.

Voluntary coverage for contract and professional workers not covered by any specific fund.

Special systems for public-sector workers and self-employed persons in the liberal professions.

Social insurance: All employed persons, including household employees, and certain self-employed persons, with at least 18 years of contributions as of December 31, 1995.

Voluntary coverage for contract and professional workers not covered by any specific fund.

Special systems for public-sector workers and self-employed persons in the liberal professions.

Source of Funds

Insured person: 9.19% of gross earnings; 9.89% for those in the performing arts and dancers.

The daily minimum earnings used to calculate contributions for workers in industry are €63.30 or the daily minimum wage, whichever is greater.

The daily minimum wage varies by sector of employment.

For those insured before 1996, contributions are calculated on all earnings. For persons entering the system on or after January 1, 1996, the maximum earnings used to calculate contributions are €100,123 a year.

Self-employed person: 22.2%.

Employer: 23.81% of gross payroll; 25.81% for those in the performing arts and dancers. (A lower contribution rate is paid by some employers, including employers in certain economically depressed areas.)

The daily minimum earnings used to calculate contributions for workers in industry are €63.30 or the daily minimum wage, whichever is greater.

The daily minimum wage varies by sector and category of employment.

For those insured before 1996, contributions are calculated on all earnings. For persons entering the system on or after January 1, 1996, the maximum earnings used to calculate contributions are €100,123 a year.

Government: The total cost of income-tested allowances and any overall deficit.

Qualifying Conditions

Old-age pension (NDC): Age 66 and three months (men, and women in the public sector), age 62 and three months (women in the private sector, gradually rising to 66 and three months by 2018), with at least 20 years of paid or credited contributions (at least five years if aged 70).

Employment may continue.

Old-age pension (social insurance): Age 66 and three months (men, and women in the public sector), age 62 and three months (women in the private sector, gradually rising to 66 and three months by 2018) with at least 20 years of paid or credited contributions (15 years of contributions if made before December 1992).

Employment may continue.

Early pension: Any age with 42 years and five months of contributions (men, rising to 42 years and six months by 2014) or 41 years and five months (women, rising to 41 years and six months by 2014) if insurance period began before January 1, 1996). Age 63 with 42 years and five months of contributions (men) or 41 years and five months of contributions (women) if the insurance period began on or after January 1, 1996.

Social allowance (means tested): Age 65 and three months, ineligible for the old-age pension; an Italian citizen, a citizen of a European Union member state and residing in Italy, or a non-European Union citizen who resides in Italy with a special residence permit. Annual income, including that of a partner, must not exceed €5,818.93 if single; €11,637.86 for a couple.

Disability pension: Paid for a total and permanent incapacity for any work with at least five years of contributions, including three in the last five years before the claim. The insured may not receive any other income, including earnings from self-employment and unemployment benefits.

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.

Disability allowance (means tested): Paid for the loss of 66.7% of working capacity with at least five years of contributions, including three in the last five years before the claim. The allowance is paid for up to three years; may be extended for additional three-year periods. After the allowance has been extended for a third consecutive time, the award becomes permanent.

If the insured meets the qualifying conditions for the old-age pension at retirement age, the disability allowance is replaced by the old-age pension.

Means test: A reduced benefit is paid if the insured has annual income exceeding three, four, or five times the annual minimum pension. No benefit is paid at higher income levels.

The annual minimum pension is €6,517.94.

Survivor pension (means tested): The deceased received an old-age, seniority, or disability pension and had at least 15 years of contributions or five years of contributions, including three in the last five years before death.

Means test: For a survivor pension first awarded after September 1, 1995, a reduced benefit is paid if the eligible survivor has annual income exceeding three, four, or five times the annual minimum pension. No benefit is paid at higher income levels.

The means test is not applicable to children younger than age 18, students, or persons with a disability.

The annual minimum pension is €6,517.94.

Eligible survivors include the spouse; a separated spouse entitled to alimony; children younger than age 18 (age 21 if a full-time student, age 26 if a university student, no limit if disabled at the time of the insured's death); dependent nephews, nieces, or grandchildren; or, if there are none of the above, dependent parents older than age 65 not entitled to a pension.

The survivor pension ceases on remarriage and a lump sum is paid.

Death grant: Paid if the qualifying conditions for the survivor pension are not met. The deceased must have paid at least one year of contributions in the previous five years.

Old-Age Benefits

Old-age pension (NDC): The pension is based on notional contributions, adjusted annually according to the average rate of increase in gross domestic product during the last five years, and an actuarial coefficient that varies according to the insured's age (from 4.304% at age 57 to 6.561% at age 70 and over).

The minimum monthly pension is 1.5 times the minimum monthly social allowance.

The minimum monthly social allowance is €447.61.

The maximum annual earnings used to calculate benefits are €100,123.

Old-age pension (social insurance): The pension is based on the insured's average annual earnings during the last five years, the number of contributions (up to 40 years) and a coefficient that varies according to the level of annual earnings: from 2% for annual earnings up to €46,076 to 0.9% for annual earnings greater than €76,486.16 for contributions accrued prior to December 1992, and for annual earnings greater than €87,544.40 for contributions accrued from January 1993 onwards.

Annual earnings used to calculate benefits are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Old-age pension (mixed social insurance and NDC): A social insurance pension is provided for the contribution period before January 1, 1996, and an NDC pension (see NDC pension above) is provided thereafter.

The social insurance part of the pension is based on the insured's average annual earnings during the last five to 10 years. Annual earnings used to calculate benefits are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Insured persons with at least 15 years of contributions, including five years before 1995, can opt for an NDC pension only.

The minimum monthly old-age pension is €501.38 for a single pensioner with annual income less than €13,035.88 (€26,071.76 for a couple). The minimum monthly old-age pension is €637.82 for a single pensioner aged 70 or older with annual income less than €8,291.66 (€14,110.59 for a couple aged 70 or older).

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Early pension: The pension is based on the insured's average annual earnings during the last five years, the number of contributions (up to 40 years) and a coefficient that varies according to the level of annual earnings: from 2% for annual earnings up to €46,076 to 0.9% for annual earnings greater than €76,486.16 for contributions accrued prior to December 1992, and for annual earnings greater than €87,544.40 for contributions accrued from January 1993 onwards.

Annual earnings used to calculate benefits are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Social allowance: €447.61 a month is paid for an unmarried pensioner with annual income less than €5,818.93 or for a couple with an annual income less than €11,637.86; may be increased to €637.82 a month if aged 70 or older, unmarried, and with annual income less than €8,291.66 (for one person) or €14,110.59 (for a couple).

Benefits are not payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Permanent Disability Benefits

Disability pension (NDC): The pension is based on notional contributions, adjusted annually according to the average rate of increase in gross domestic product during the last five years, and an actuarial coefficient that varies according to the insured's age (from 4.304% at age 57 to 6.561% at age 70 or older). If the disability began before age 57, the coefficient corresponding to age 57 is used.

An increment based on the number of years between the insured's age on the date the disability began and the normal retirement age is added to the pension.

The minimum monthly pension is €501.38 for an unmarried pensioner aged 60 or older with income less than €13,035.88 (€26,071.76 for a couple).

If the insured is also entitled to a work injury disability pension, only the part of the disability pension that exceeds the work injury disability pension is paid.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Disability pension (social insurance): The pension is based on the insured's average annual earnings during the last five years, the number of contributions (up to 40 years) and a coefficient that varies according to the level of annual earnings: from 2% for annual earnings up to €46,076 to 0.9% for annual earnings greater than €76,486.16 for contributions accrued prior to December 1992, and for annual earnings greater than €87,544.40 for contributions accrued from January 1993 onwards.

Annual earnings used to calculate benefits are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

An increment based on the number of years between the insured's age on the date the disability began and the normal retirement age is added to the pension.

The minimum monthly pension is €631.87 for a pensioner aged 60 or older with income less than €16,449.85.

If the insured is also entitled to a work injury disability pension, only the part of the disability pension that exceeds the work injury disability pension is paid.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Disability pension (mixed social insurance and NDC): For the contribution period before January 1, 1996, the pension is calculated in the same way as the social insurance old-age pension, above; for the contribution period beginning January 1, 1996, the pension is calculated in the same way as the NDC old-age pension, above.

The social insurance part of the pension is based on the insured's average annual earnings during the last five to 10 years. Annual earnings used to calculate benefits are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Insured persons with at least 15 years of contributions, including five years before 1995, can opt for a pension calculated in the same way as the NDC old-age pension.

Disability allowance (means tested): Calculated in the same way as the disability pension.

No increment is paid for the anticipated number of years from the insured's age on the date the disability began to the normal retirement age.

The minimum monthly pension is €447.61 for an unmarried pensioner aged 60 or older with income less than €5,818.93 (€11,637.86 for a couple). If the person or household's annual income is greater than a certain amount, a reduced benefit or no benefit is paid).

Means test: The disability allowance is reduced by 25% if the insured's annual income exceeds four times the minimum pension or by 50% if it exceeds five times the annual minimum pension.

The annual minimum pension is €6,517.94.

If the insured is also entitled to a work injury disability pension, only the part of the disability allowance that exceeds the work injury disability pension is paid.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Survivor Benefits

Survivor pension (means tested): 60% of the old-age or disability pension the deceased received or was entitled to receive is paid to a spouse without children, 80% for a spouse with one child, 100% for a spouse with two or more children, 70% for one full orphan, 80% for two full orphans, or 100% for three or more full orphans.

Means test: The spouse's pension is reduced by 25%, 40%, or 50% if the spouse's income exceeds three times, four times, or five times the annual minimum pension, respectively. The annual minimum pension is €6,517.94.

The survivor pension ceases on remarriage and a lump sum of two years of pension is paid.

Other eligible survivors: 15% of the old-age or disability pension the deceased received or was entitled to receive is paid to each parent, brother, or sister if there is no surviving spouse or orphans.

All survivor benefits combined must not exceed 100% of the deceased's pension.

Death grant: For persons first insured before January, 1 1996, a lump sum based on the total amount of paid contributions multiplied by an index is paid.

If first insured on or after January 1, 1996, a lump sum of the social allowance multiplied by the number of years of contributions may be paid under certain conditions.

Administrative Organization

Ministry of Labor and Social Policy (http://www.lavoro.gov.it) and Ministry of Economy and Finance (http://www.tesoro.it) provide general supervision.

National Social Security Institute (http://www.inps.it) administers the national program through its branch offices and administers a number of special programs for certain categories of insured workers.

Sickness and Maternity

Regulatory Framework

First laws: 1912 (maternity), 1927 (tuberculosis), and 1943 (sickness).

Current laws: 1943 (sickness), 1971 (working mothers), 1977 (equal treatment), 1978 (health service), 1980 (sickness), 1983 (sickness), 1987 (tuberculosis), 1999 (sickness benefits), 2000 (maternity and paternity), 2001 (maternity and paternity), 2006 (sickness), and 2011 (sickness).

Type of program: Social insurance (cash benefits) and universal (medical benefits) system.

Coverage

Sickness benefits: Employed persons and contract workers.

Maternity benefits: Employed persons, contract workers, and self-employed persons.

Tuberculosis benefits: Employed persons and certain categories of self-employed person.

Medical benefits: Residents of Italy.

Source of Funds

Insured person

Sickness and maternity benefits: None; some categories of contract workers make variable contributions.

Tuberculosis benefits: None.

Self-employed person

Sickness and maternity benefits: Variable contributions for sickness and maternity only.

Tuberculosis benefits: None.

Employer

Sickness and maternity benefits: 2.22% of gross earnings (sickness) and 0.46% (maternity) for industrial blue-collar workers; 0.46% of gross earnings (maternity only) for industrial white-collar workers; 2.44% of gross earnings (sickness) and 0.24% (maternity) for employees in commerce and the service sector. Variable contributions for some categories of contract workers.

Tuberculosis benefits: None.

Government

Sickness and maternity benefits: The total cost of maternity benefits for certain categories of worker, including home-based, agricultural, and household workers.

Tuberculosis benefits: The total cost.

Qualifying Conditions

Cash sickness, maternity and paternity benefits and parental leave: Must be currently covered; self-employed persons and contract workers must also satisfy a means test.

Tuberculosis benefits: Must be diagnosed with tuberculosis and have at least one year of coverage.

Medical benefits: There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit: 50% of the insured's average daily earnings is paid for the first 20 days of incapacity; thereafter, 66.6%. The benefit is paid after a three-day waiting period for up to 180 days a year; may be extended in special cases.

For contract workers, the daily benefit is paid for up to 180 days of hospitalization, and the benefit varies according to the number of contributions paid in the 12 months before hospitalization. The daily benefit may be paid under certain exceptions for sicknesses not requiring hospitalization, for up to 61 days a year.

Maternity benefit: 80% of the insured's average daily earnings in the last month before maternity leave is paid for two months before the expected date of childbirth and three months after childbirth.

For self-employed persons, 80% of average insured daily earnings in the last 12 months before the maternity leave is paid for two months before the expected date of childbirth and three months after childbirth.

Paternity benefit: 100% of the insured's average daily earnings in the previous month is paid for one day compulsory leave; must be taken within five months of the date of childbirth; two additional days may be paid if they replace two days paid maternity benefit to the mother. The father may be paid up to three months' leave if the mother does not claim paid maternity leave for that period, or if the father has sole responsibility for the child.

Parental leave: 30% of the insured's average daily earnings in the last month before leave is paid. Six months of leave must be taken before the child is age 8; before the child is age three the parental leave may be paid to either parent (up to 10 months with a possible extension of one month if the parents' income is less than 2.5 times the minimum pension); a self-employed mother receives three months of leave which must be taken before the child is age one. From 2014 through 2015, mothers may choose a contribution to childcare costs in lieu of parental leave.

Tuberculosis benefits

Daily benefit: €13.12 a day (€6.56 if the beneficiary is a pensioner or the insured's dependent) is paid while receiving institutional care.

Postsanatorium benefit: €21.88 a day (€10.94 if the beneficiary is a pensioner or the insured's dependent) is paid for up to two years after leaving institutional care that had lasted for at least six months.

Care and support allowance: €88.28 a month is paid for a renewable two-year period if the insured person has at least a 50% assessed loss of earning capacity.

Christmas allowance: An additional 30 days of benefits are paid.

Workers' Medical Benefits

Services are provided by doctors and pharmacists under contract with, and paid directly by, the National Health Service. Benefits are paid by the Health Service or by hospitals, most of which are public. Benefits include general and specialist care, hospitalization, prescribed medicine, dental care, the attendance of a midwife or doctor at childbirth, specified appliances, and spa treatment. Tuberculosis care includes curative and convalescent care in a sanatorium, postsanatorium care, and rehabilitation.

Cost sharing: Patients pay up to 50% of the cost of certain prescribed medicine and up to €36 for each prescribed medical service. Copayments are waived for certain categories of insured persons (including children younger than age 6, persons with disabilities, and persons receiving minimum social benefits) and for persons with certain medical conditions.

There is no limit to duration.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Labor and Social Policy (http://www.lavoro.gov.it), Ministry of Health (http://www.ministerosalute.it), and Ministry of Economy and Finance (http://www.tesoro.it) provide general supervision.

National Social Security Institute (http://www.inps.it) administers cash sickness, maternity, and tuberculosis benefits.

National Health Service (http://www.ministerosalute.it) administers medical benefits through its 20 regional health authorities and their respective local health authorities.

Work Injury

Regulatory Framework

First law: 1898.

Current laws: 1965 (work injury), 1999 (domestic accidents), 2000 (work injury and occupational diseases), 2000 (work injury and occupational diseases), 2008 (occupational diseases), and 2010 (financial stabilization and economic competitiveness).

Type of program: Social insurance system.

Coverage

Manual workers, nonmanual employees in dangerous work, self-employed agricultural workers, artisans, teachers, students, apprentices, household workers, company managers, contract workers, professional athletes, and maritime workers.

Source of Funds

Insured person: None. Contract workers pay one-third of the employers contribution.

Self-employed person: Variable contributions according to the assessed degree of risk.

Employer: 0.5% to 13% of payroll, according to the assessed degree of risk. The average contribution for industrial workers is 3%. Employers pay two-thirds of the contribution for contract workers.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period. Accidents that occur while commuting to and from work are covered.

Temporary Disability Benefits

60% of the insured's average daily wage (75% for maritime workers) is paid for the first 90 days after a three-day waiting period; thereafter, 75%. The employer pays 100% of earnings for the day of the accident, or the date the occupational disease began, and at least 60% of earnings for the next three days.

The average daily wage is based on earnings in the last 15 days before the accident or the date the occupational disease began (the day after disembarking the ship for maritime workers).

For certain categories of workers, benefits are calculated based on a reference income set by ministerial decree.

Permanent Disability Benefits

Permanent disability pension (for incidents before July 25, 2000): Must have at least an 11% assessed degree of disability.

The pension is based on average earnings during the year before the date of the accident or the date the occupational disease began and the assessed degree of disability.

The minimum annual earnings used to calculate benefits are €15,983.10.

The maximum annual earnings used to calculate benefits are €29,682.90.

Dependent's supplement: 5% of the pension is paid for a spouse and for each child younger than age 18 (age 21 if in full-time education, age 26 if a university student, no limit if disabled).

The pension cannot be combined with the disability pension paid under the old-age, disability, and survivor program.

The pension is payable abroad.

Benefit adjustment: Benefits are adjusted annually in July by ministerial decree according to changes in consumer prices.

Permanent disability pension (for incidents on or after July 25, 2000): For an assessed degree of disability of at least 16%, the pension is calculated based on the insured's age, gender, and degree of disability, and the insured's average earnings during the year preceding the date of the accident or the date the occupational disease began and a coefficient, according to a schedule in law.

A lump sum is paid for an assessed degree of disability from 6% to 15%.

There is no earnings test.

Dependent's supplement: 5% of the pension is paid for a spouse and for each child younger than age 18 (age 21 if in full-time education, age 26 if a university student, no limit if disabled).

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions. €526.26 a month is paid for an assessed permanent disability of 100%.

Benefit adjustment: Benefits are adjusted annually in July by ministerial decree according to changes in consumer prices.

Permanent disability pension (domestic accidents after March 1, 2001): Aged 18 to 65 and injured while completing household tasks that result in an assessed degree of incapacity of 27% or more. The pension is calculated based on the reference minimum salary in the industrial sector.

Unemployability pension: €253.04 a month is paid to supplement the permanent disability pension if the insured is younger than age 65, has an assessed degree of disability of at least 20%, has lost all capacity for work, or is a risk to co-workers or workplace safety.

Benefit adjustment: Benefits are adjusted annually in July by ministerial decree according to changes in consumer prices.

Transitional compensation for silicosis and asbestosis: Benefits are paid for one year to compensate insured workers with an assessed degree of disability up to 60% who are forced to leave a harmful work position to avoid aggravation of a diagnosed disease. If the insured has become unemployed, 66.7% of the average daily wage received in the 30 days before the insured left the harmful work position is paid. If the insured has changed employment, the amount is 66.7% of the difference between the average daily wage received in the 30 days before the insured left the harmful work position and the remuneration received in the new employment.

Benefit adjustment: Benefits are adjusted annually in July by ministerial decree according to changes in consumer prices.

Workers' Medical Benefits

Benefits include medical, surgical, and hospital care; appliances; and rehabilitation.

Survivor Benefits

Spouse's pension: 50% of the deceased's average earnings is paid.

Average earnings are based on earnings during the year preceding the date of the accident or the onset of the occupational disease that resulted in the insured's death.

Orphan's pension: 20% (40% for a full orphan) of the deceased's average earnings is paid to each orphan younger than age 18 (age 21 if a full-time student, age 26 if a university student, no limit if disabled), or to each dependent parent, brother, or sister if there is no widow(er) or orphans.

Average earnings are based on earnings during the year preceding the date of the accident or the onset of the occupational disease that resulted in the insured's death.

All survivor benefits combined must not exceed 100% of the deceased's average earnings.

Funeral grant: A lump sum of €2,108.62 is paid to the person who paid for the funeral.

Benefit adjustment: Benefits are adjusted annually in July by ministerial decree according to changes in consumer prices.

Fatal accident compensation: Paid to survivors of a person (whether insured or not) who died in a fatal occupational accident. The amount is fixed annually by the Ministry of Labor and Social Policy, and is based on the number of eligible survivors.

Administrative Organization

Ministry of Labor and Social Policy (http://www.lavoro.gov.it) and Ministry of Economy and Finance (http://www.tesoro.it) provide general supervision.

National Accident Insurance Institute (http://www.inail.it) administers the program through provincial offices.

National Health Service (http://www.salute.gov.it) administers medical benefits through its 20 regional health authorities and their respective local health authorities.

Unemployment

Regulatory Framework

First laws: 1919 and 1945.

Current laws: 1935, 1939, 1975, 1977, 1988, 1991, 1994, 1996, 1997, 1998, 2000, 2005, 2009, and 2012.

Type of program: Social insurance system.

Coverage

Private-sector employees and apprentices. Construction workers are also covered for a special supplementary benefit.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None; 0.3% of gross earnings (special wage supplement) in companies with more than 50 employees.

Self-employed person: Not applicable.

Employer: 1.61% of gross earnings (2.41% in the construction industry). For the special wage supplement, employers with less than 15 employees contribute an additional 1.9% of gross earnings; 3.1% with 15 to 49 employees; 3.4% with 50 or more employees (3.7% in the commercial sector).

There are no maximum earnings used to calculate contributions.

Government: Administrative costs plus subsidies for agricultural workers.

Qualifying Conditions

Full unemployment benefits

Unemployment benefit: Must have at least two years of coverage with at least 52 weeks of contributions in the last two years; construction workers, at least 43 weeks or 10 months of contributions during two years of employment in the sector; agricultural workers, at least 102 days of contributions during two years of employment in the sector. Unemployment must be involuntary.

Mobility allowance: Paid to industrial workers (excluding construction workers) with at least one year of coverage and six months of employment. Unemployment is due to the employer reducing staff, restructuring, or ceasing. Companies in the industrial or security sectors must have at least 15 employees during the last six months before dismissal; at least 50 employees for companies in the trade and tourism sectors. Workers must be registered at an employment office and be capable of, and available for, work.

Partial unemployment benefits

Ordinary wage supplement: Paid for a temporary reduction in the work week as a result of a reduction in the firm's activity, with the agreement of the National Social Security Institute. The employer makes the claim for the employee.

Special wage supplement: Awarded by ministerial decree to insured persons working in industrial firms with more than 15 employees (50 employees in the commercial sector) if there is a reduction in the work week due to restructuring or a change in activity. The claim is made by the employer for the employee.

Unemployment Benefits

Full unemployment benefits

Unemployment benefit: 75% of the insured's gross average daily wage is paid for the first six months, 60% for the next six months, and 45% after 12 months. The benefit is paid for up to eight months to insured persons younger than age 50; up to 12 months if aged 50 up to age 55; up to 14 months if aged 55 or over.

The gross average daily wage is based on the insured's earnings in the previous three months.

The maximum monthly benefit is €1,165.58.

Construction workers receive 100% of earnings during the first 12 months of unemployment; thereafter, 80% for up to 18 months to 27 months, depending on the employer's location.

The maximum reduced benefit is €892.96 a month; €1,073.25 if the insured's gross earnings before unemployment were greater than €1,961.80 a month.

Mobility allowance: 100% of the insured's last earnings is paid for up to 12 months; thereafter, 80%. The maximum duration of the allowance varies from 12 months to 36 months (24 months to 48 months in southern regions), and depends on the age of the worker and the location of the place of employment.

The maximum monthly benefit is €1,165.58.

Partial unemployment benefits

Ordinary wage supplement: 80% of lost earnings caused by a reduction in the work week of 24 to 40 hours is paid for up to 12 months if the employer is insolvent (may be renewed for an additional six months); up to 24 months if the employer restructures or changes activity.

The maximum monthly benefit is €969.77; €1,165.58 if the insured's gross earnings before unemployment were greater than €2,098.04 a month.

Special wage supplement: 80% of lost earnings caused by a reduction in the work week of up to 40 hours is paid for up to 24 months.

The maximum monthly benefit is €906.80; €1,089.89 if the insured's gross earnings before unemployment were greater than €1,961.80 a month.

Administrative Organization

Ministry of Labor and Social Policy (http://www.lavoro.gov.it) and Ministry of Economy and Finance (http://www.tesoro.it) provide general supervision.

National Social Security Institute (http://www.inps.it) administers the program through its branch offices.

Family Allowances

Regulatory Framework

First law: 1937.

Current laws: 1955, 1961, 1988 (family allowances), 1999, 2006, 2007, 2008, and 2013.

Type of program: Employment-related system.

Coverage

Children and dependents of employees or social insurance and welfare beneficiaries.

Special systems for self-employed persons and for pensioners of the special systems.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 0.68% of gross payroll.

The minimum daily earnings used to calculate contributions are €47.58.

Government: Subsidies, including 1.8% of the employer contribution.

Qualifying Conditions

Family allowances (means tested): Must be a salaried worker; a part-time worker; a cooperative member; a pensioner of the general scheme; a recipient of unemployment, maternity, or sickness benefits; or in military service.

Eligible family units may be composed of the insured; a nondivorced or nonlegally separated spouse; children younger than age 18 (age 21 if a full-time student if three or more children in the family, no limit if disabled); dependent grandchildren, and dependent orphaned brothers, sisters, nieces, and nephews (if ineligible for a survivor pension).

Means test: Total family taxable income (except for pensions and social benefits) must not exceed an amount adjusted annually according to changes in the retail price index. The insured's earnings must be at least 70% of the total family taxable income.

Family support allowance (means tested): Paid to families with at least three dependent children.

Means test: For a five-member family including three are dependent children, annual family income must not exceed €25,384.91.

Family Allowance Benefits

Family allowances (means tested): Up to €2,294.38 a month is paid, according to the number of family members, household income, and certain other criteria (including the number of parents, dependents, and family members with a disability).

Family support allowance (means tested): €141.02 a month is paid.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to a government index.

Administrative Organization

Ministry of Labor and Social Policy (http://www.lavoro.gov.it) and Ministry of Economy and Finance (http://www.tesoro.it) provide general supervision.

National Social Security Institute (http://www.inps.it) administers the program through the Central Family Allowances Fund.

Employers pay allowances directly to employees (except in agriculture), including household workers.