Italy

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1919.

Current laws: 1995 (pension reform), 2005, 2008, 2009, 2010, 2011, 2012, 2013, 2013, and 2016.

Type of program: Social insurance, notional defined contribution (NDC), and social assistance system.

Note: In 1996, the social insurance system was closed to new entrants and replaced by an NDC system. Workers with less than 18 years of contributions when the NDC system was introduced are covered under a transitional (mixed) system. From 1996 to 2011, workers with at least 18 years of contributions when the NDC system was introduced could choose to remain in the old social insurance program; those who did not are now covered under the transitional (mixed) system.

Coverage

Social insurance and NDC: Private-sector employees, including household employees, and self-employed persons.

Voluntary coverage for contract and professional workers.

Social assistance: Citizens of Italy, citizens of the European Union residing in Italy, and non-European Union citizens residing in Italy for 10 consecutive years with a residence permit.

Source of Funds

Insured person

Social insurance and NDC: 9.19% of covered earnings; 9.89% for those in the performing arts and dancers.

The minimum daily earnings used to calculate contributions are the general legal daily minimum wage or the sectoral minimum wage set by collective agreement, whichever is higher.

The general legal daily minimum wage is €48.20.

For those insured before 1996, contributions are calculated on all earnings. For persons entering the system on or after January 1, 1996, the maximum annual earnings used to calculate contributions are €101,427.

Social assistance: None.

Self-employed person

Social insurance and NDC: 24% to 34.23% of annual covered declared income, depending on the type of self-employment and coverage.

The minimum annual income used to calculate contributions is €15,710.

The maximum annual income used to calculate contributions is €77,717.

Social assistance: None.

Employer

Social insurance and NDC: 23.81% of covered payroll; 25.81% for employees who are in the performing arts and dancers. (A lower contribution rate is paid by some employers, including employers in certain economically depressed areas.)

The minimum daily earnings used to calculate contributions are the general daily minimum wage or the sectoral minimum wage set by collective agreement, whichever is higher.

The general daily minimum wage is €48.20.

For those insured before 1996, contributions are calculated on all earnings. For persons entering the system on or after January 1, 1996, the maximum annual earnings used to calculate contributions are €101,427.

Social assistance: None.

Government

Social insurance and NDC: Finances any deficit; contributes as an employer.

Social assistance: The total cost.

Qualifying Conditions

Old-age pension (social insurance and NDC): Age 66 and 7 months (rising to age 67 in 2019 and thereafter, gradually rising based on increases in life expectancy), with at least 20 years of paid or credited contributions (or at least 15 years of paid or credited contributions, including five years before 1995, for persons who choose to receive a NDC pension instead of a mixed pension). For workers first insured on or after January 1, 1996, the notional account balance must be sufficient to provide a pension of at least 1.5 times the monthly old-age social allowance (assegno sociale) or the insured must reach age 70 and 7 months and have at least five years of contributions, regardless of the notional account balance.

The monthly old-age social allowance (assegno sociale) is €453.

Guaranteed minimum pension: Paid to social insurance or mixed program pensioners with a monthly pension lower than the living minimum income.

The living minimum income is €507.42.

Employment must cease (except for self-employed persons).

Early pension: At any age with at least 42 years and 10 months (men) or at least 41 years and 10 months (women) of contributions. For workers first insured on or after January 1, 1996, age 63 and 7 months with at least 20 years of contributions if the notional account balance is sufficient to provide a pension of at least 2.8 times the monthly old-age social allowance (assegno sociale).

Employment must cease (except for self-employed persons).

The old-age pension and early pension (minus income-tested minimums and supplements) are payable abroad.

Old-age social allowance (assegno sociale, social assistance, income tested): Age 66 and 7 months (rising to age 67 in 2019 and thereafter, gradually rising based on increases in life expectancy), does not qualify to receive a social insurance or NDC old-age pension, and has at least 10 consecutive years of residence in Italy.

Income test: Annual income must not exceed €5,889 for a single person; €11,788 for a couple.

The old-age social allowance is not payable abroad.

Low-income pension supplement (incremento della maggiorazione, social assistance, income tested): Paid to low-income old-age, disability, and survivor pensioners, and to beneficiaries of the disability allowance. Must be aged 70 or older (60 or older if disabled; 65 or older depending on the insured's years of contributions).

Income test: Annual personal income must not exceed €8,370.18 for a single person; €14,259.18 for a couple.

Disability pension (pensione di inabilità, social insurance and NDC): Must have a total (100%) and permanent incapacity for any work with at least five years of contributions, including three of the last five years before the claim is made.

Employment must cease.

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.

Low-income supplement (maggiorazione, income tested): Must be aged 60 or older, with personal income less than the annual old-age social allowance plus supplement and annual household income less than €12,619.75.

The annual old-age social allowance plus supplement is €6,023.29.

The disability pension is payable abroad.

Partial disability allowance (assegno ordinario di invalidità, social insurance and NDC, income tested): Must have an assessed loss of work capacity of at least two-thirds with at least five years of contributions, including three of the last five years before the claim is made.

Employment may continue.

Income test: A reduced benefit is paid if the insured has annual earnings exceeding four times the minimum annual pension.

The minimum annual pension is €6,596.46.

Minimum integration increment (integrazione al minimo): An increment is paid if the insured's personal income (including pensions) is less than €11,778 and the household income is less than €17,667.

Low-income supplement (maggiorazione, income tested): Must be aged 60 or older, with personal income less than the annual old-age social allowance plus supplement and annual household income less than €12,619.75.

The annual old-age social allowance plus supplement is €6,023.29.

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

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

The partial disability allowance is payable abroad.

Disability social pension (pensione di invalidità civile, social assistance, income tested): Must be aged 18 or older but younger than the normal retirement age and assessed with a total (100%) loss of work capacity. Must not be receiving any other social assistance benefit.

Employment may continue.

Income test: Annual income (including pensions) must be less than €16,664.36.

The disability social pension can be combined with a social insurance pension.

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

The disability social pension is payable abroad for up to six months.

Partial disability social allowance (assegno sociale di invalidità, social assistance, income tested): Must be aged 18 or older but younger than the normal retirement age and be assessed with a 74% to 99% assessed loss of work capacity. Must not be receiving any other social insurance or social assistance disability pension.

Employment must cease.

Income test: Annual income (including pensions) must be less than €4,853.29.

The partial disability social allowance can be combined with a social insurance pension that is not related to disability.

The partial disability social allowance is payable abroad for up to six months.

Survivor pension (social insurance and NDC, means tested): The deceased received an old-age or disability pension; or was still working and had at least 780 weeks of contributions or at least 260 weeks of contributions, including 156 weeks in the last five years before death.

Means test: For a survivor pension first awarded on or 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 survivor pension. The means test is waived for a widow(er) with children younger than age 18 (age 26 if a student), children younger than age 18 (age 26 if a student), or survivors with disabilities.

The minimum annual survivor pension is €6,596.46.

Eligible survivors include a widow(er) or civil partner; a separated spouse entitled to alimony; children, dependent nephews, nieces, or grandchildren 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); or, in the absence of the above, dependent parents older than age 65 or unmarried disabled dependent siblings, who are not entitled to a pension.

The survivor pension ceases upon remarriage.

Remarriage settlement: Paid when the widow(er) remarries.

Death grant (social insurance and NDC): Paid if the deceased had at least one year of contributions in the last five years but did not meet the qualifying conditions for the survivor pension.

Old-Age Benefits

Old-age pension (social insurance only): The pension is based on the insured's average annual earnings in the last five years, the number of contributions (up to 40 years), and a coefficient that varies depending on the level of annual earnings: from 2% for annual earnings up to €46,630 to 0.9% for annual earnings greater than €77,717. The social insurance pension has been phased out and is only paid to persons with accrued rights as of 2011.

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

Guaranteed minimum pension: The difference between the monthly old-age pension and the minimum living income is paid.

The minimum living income is €507.42.

Early pension: Calculated in the same way as the old-age pension.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December. If the monthly pension is very low, benefits are paid every six months or every year.

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

Old-age pension (NDC): The pension is based on notional contributions, adjusted annually based on the average rate of increase in gross domestic product in the last five years, and an actuarial coefficient that varies depending on the insured's age (from 4.246% at age 57 to 6.378% at age 70 or older).

Early pension: Calculated in the same way as the old-age pension.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December. If the monthly pension is very low, benefits are paid every six months or every year.

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

Old-age 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.

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.

Guaranteed minimum pension: The difference between the monthly old-age pension and the minimum living income is paid.

The minimum living income is €507.42.

Early pension: Calculated in the same way as the old-age pension.

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

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

Old-age social allowance (assegno sociale, social assistance, means tested): Up to €453 a month is paid to an unmarried pensioner with annual income less than €5,889 or a couple with an annual income less than €11,788, plus an additional €12.92 a month if aged 65 or older with an annual income less than €5,889 (for a single person) or €12,485.46 (for a couple), or an additional €190.86 a month if aged 70 or older with an annual income less than €8,370 (for a single person) or €14,259.18 (for a couple).

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

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

Low-income pension supplement (incremento della maggiorazione, social assistance, income tested): Up to €136.44 a month is paid to an eligible pensioner.

The maximum monthly pension (with all supplements) is €643.86.

Permanent Disability Benefits

Disability pension (pensione di inabilità, social insurance only): The pension is based on the insured's average annual earnings in the last five years, the number of contributions (up to 40 years), and a coefficient that varies depending on the level of annual earnings: from 2% for annual earnings up to €46, 630 to 0.9% for annual earnings greater than €77,717. The social insurance pension has been phased out and is only paid to persons with accrued rights as of 2011.

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

An increment is paid based on the difference between the insured's age on the date the disability began and the normal retirement age.

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.

Low-income supplement (maggiorazione, income tested): Up to €10.33 a month is paid to eligible pensioners younger than age 65; higher if aged 65 or older.

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

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

Disability pension (pensione di inabilità, NDC): The pension is based on notional contributions, adjusted annually based on the average rate of increase in gross domestic product in the last five years, and an actuarial coefficient that varies depending on the insured's age (from 4.246% at age 57 to 6.378% at age 70 or older). If the disability began before age 57, the coefficient corresponding to age 57 is used.

An increment is paid based on the difference between the insured's age on the date the disability began and age 60, up to a maximum of 40 years (2,080 weeks of contributions).

The minimum monthly disability pension is €507.42 for a pensioner aged 60 or older with personal income less than €13,192.92 and household income less than €26,385.84. There is no minimum disability pension otherwise.

There is no maximum disability pension.

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.

Low-income supplement (maggiorazione, income tested): Up to €10.33 a month is paid to eligible pensioners younger than age 65; higher if aged 65 or older.

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

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

Disability pension (pensione di inabilità, 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 disability pension, above; for the contribution period beginning January 1, 1996, the pension is calculated in the same way as the NDC disability pension, above.

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 disability pension.

Low-income supplement (maggiorazione, income tested): Up to €10.33 a month is paid to eligible pensioners younger than age 65; higher if aged 65 or older.

Partial disability allowance (assegno ordinario di invalidità, social insurance and NDC, means tested): A social insurance, mixed, or NDC disability pension (minus any increment for years between date of disability and the normal retirement age) 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.

Income test: The partial disability allowance is reduced by 25% if the insured's annual earnings exceeds four times the minimum annual pension or by 50% if earnings exceed five times the minimum annual pension.

The minimum annual pension is €6,596.46.

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

Minimum integration increment (integrazione al minimo, income tested): The difference between the annual disability allowance and the minimum annual pension is paid.

Low-income supplement (maggiorazione, income tested): Up to €10.33 a month is paid to eligible pensioners younger than age 65; higher if aged 65 or older.

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

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

Disability social pension (pensione di invalidità, social assistance, income tested): Up to €282.55 a month is paid.

Constant-attendance supplement: €516.35 a month is paid.

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

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

Partial disability social allowance (assegno sociale di invalidità, income tested): Up to €282.55 a month is paid.

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

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

Low-income pension supplement (incremento della maggiorazione, social assistance, income tested): See Old-Age Benefits.

Survivor Benefits

Survivor pension (social insurance and NDC)

Spouse's pension (means tested): 60% of the old-age or disability pension the deceased received or was entitled to receive is paid to a widow(er) without children, 80% for a widow(er) with one child (including a dependent nephew, niece, or grandchild), and 100% for a widow(er) with two or more children.

Remarriage settlement: A lump sum of two years of the spouse's pension is paid.

Orphan's pension (not means tested): 70% of the old-age or disability pension the deceased received or was entitled to receive is paid to a full orphan (including a dependent nephew, niece, or grandchild); 80% for two full orphans; or 100% for three or more full orphans. The pension is split equally among all eligible orphans.

Other eligible survivor's pension (means tested): If there is no eligible widow(er) or orphan, 15% of the old-age or disability pension the deceased received or was entitled to receive is paid to each other eligible survivor.

Means test: For a survivor pension first awarded on or after September 1, 1995, the survivor pension is reduced by 25%, 40%, or 50% if the survivor's income exceeds three times, four times, or five times the minimum annual survivor pension, respectively. The means test is not applicable to widow(er)s with children younger than age 18 (age 26 if a student), orphans, or persons with disabilities.

The minimum annual survivor pension is €6,596.46.

The maximum combined survivor benefit is 100% of the old-age or disability pension the deceased received or was entitled to receive.

Death grant (social insurance and NDC): For persons first insured before January, 1 1996, a lump sum of 45 times the deceased's total paid contributions is paid.

The minimum total contributions used to calculate the death grant is €22.31.

The maximum total contributions used to calculate death grant is €66.93.

For persons first insured on or after January 1, 1996, a lump sum of the monthly old-age social allowance (assegno sociale) multiplied by the number of years of contributions is paid.

The monthly old-age social allowance (assegno sociale) is €453.

Low-income pension supplement (incremento della maggiorazione, social assistance, income tested): See Old-Age Benefits.

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 (https://www.inps.it/) collects contributions and 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), 2011 (sickness), 2012, and 2015 (birth grant).

Type of program: Universal (medical benefits and pregnancy grant), social insurance (cash benefits), employment-related (tuberculosis benefits), employer-liability (paternity leave), and social assistance (birth grant) system.

Note: Needy women may be eligible for a social assistance maternity allowance through the state (assegno di maternità dello stato) or municipality (assegno di maternità dei comuni) if they do not qualify for social insurance maternity benefits.

Coverage

Universal (medical benefits and pregnancy grant): Residents of Italy.

Social insurance (sickness benefits): Employed persons and contract workers.

Social insurance (maternity benefits): Employed persons, contract workers, household workers, and self-employed persons.

Employment-related (tuberculosis benefits): Public- and private-sector employees, pensioners, welfare beneficiaries, and certain self-employed persons.

Employer liability (paternity leave): Private-sector employees.

Social assistance (birth grant): Residents of Italy.

Source of Funds

Insured person

Universal and social assistance: None.

Social insurance (cash sickness benefits): None; some categories of contract workers make variable contributions.

Social insurance (cash maternity benefits): Variable contributions.

Employment-related: None.

Employer liability (paternity leave): None.

Self-employed person

Universal and social assistance: None.

Social insurance (cash sickness benefits): Variable contributions.

Social insurance (cash maternity benefits): Variable contributions.

Employment-related: None.

Employer liability (paternity leave): Not applicable.

Employer

Universal and social assistance: None.

Social insurance (cash sickness benefits): 2.22% of gross earnings for industrial workers; 2.44% of gross earnings for employees in commerce and the service sector; variable contributions for some categories of contract workers.

Social insurance (cash maternity benefits): 0.46% for industrial workers; 0.24% for employees in commerce and the service sector; variable contributions for some categories of contract workers.

Employment-related: The total cost.

Employer liability (paternity leave): None.

Government

Universal and social assistance: The total cost.

Social insurance (cash sickness benefits): None; contributes as an employer.

Social insurance (cash maternity benefits): Partially finances the cost of maternity benefits for all categories of workers; contributes as an employer.

Employment-related: The total cost.

Employer liability (paternity leave): None.

Qualifying Conditions

Cash sickness and maternity benefits (social insurance): There is no minimum qualifying period.

Paternity leave (employer liability): There is no minimum qualifying period.

Parental leave (social insurance): There is no minimum qualifying period.

Pregnancy grant (bonus mamma domani, universal): Paid upon the completion of seven months of pregnancy or childbirth, whichever occurs first, or for the adoption of a child.

Childcare voucher (universal): Paid for a child younger than age 3 who uses a public or private day care center (or who receives home care assistance if the child suffers from a chronic disease).

Tuberculosis benefits (employment-related): Must be diagnosed with tuberculosis and have at least 52 weeks of coverage.

Care and support allowance (means tested): Paid after the completion of post-sanatorium treatment, if earnings capacity has been reduced by at least 50%.

Christmas allowance: Must have been entitled to the tuberculosis benefit for at least one day in December.

Medical benefits (universal): There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit (social insurance): 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 depending on 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 (or adoption) benefit (social insurance): 80% of the insured's average daily earnings in the last month before maternity (or adoption) leave is paid for a compulsory leave of five months. Maternity leave may be paid from one to two months before the expected date of childbirth.

For self-employed persons, 80% of average 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.

The maternity leave can be transferred to the father if the mother dies or becomes seriously ill.

Paternity leave (employer liability): 100% of the employee's average daily earnings in the last month before paternity leave is paid for four days. Paternity leave is compulsory and must be taken within five months of the date of childbirth; one additional day of leave may be paid after this five-month period.

Parental leave (social insurance): 30% of the insured's average daily earnings in the last month before leave is paid to a parent for up to six months before the child reaches age 6 (or up to six months after the adoption); if the employee's earnings are less than 2.5 times the minimum pension, up to a total of 10 months may be claimed before the child reaches age 8; thereafter unpaid leave may be taken until the child reaches age 12. For contract workers, 30% of earnings is paid for up to six months before the child reaches age 3. For self-employed workers, 30% of earnings is paid for up to three months before the child reaches age 1.

Childcare voucher (bonus asilo nido, universal): Up to €90.91 a month is paid (or a lump sum of up to €1,000 for a child suffering from a chronic disease).

Pregnancy grant (bonus mamma domani, universal): A lump sum of €800 is paid.

Tuberculosis benefits (employment-related)

Daily benefit: €13.28 a day (€6.64 if the beneficiary is a pensioner or the insured's dependent family member) is paid while receiving institutional care.

Post-sanatorium benefit: €22.14 a day (€11.07 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 60 days.

Care and support allowance (means tested): €89.34 a month is paid for up to 24 months after the end of the post-sanatorium benefit; renewable for an additional 24 months if the insured has at least a 50% assessed loss of earning capacity.

Christmas allowance: An additional 30 days of benefits are paid if the insured received benefits for at least one day in December.

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, post-sanatorium care, and rehabilitation.

Cost sharing: Patients pay a part of the cost according to a schedule in the law. Up to €36.15 is paid for outpatient specialist care and a flat rate of €10 is paid for each drug prescription (may vary by region). Copayments are waived for children younger than age 6, persons with disabilities, persons receiving minimum social benefits, persons with certain medical conditions or treatments, and in certain other circumstances.

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.salute.gov.it/), and Ministry of Economy and Finance (http://www.tesoro.it/) provide general supervision.

National Social Security Institute (https://www.inps.it/) collects contributions and administers cash benefits.

National Health Service (http://www.salute.gov.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), 2008 (occupational diseases), and 2013 (financial stability).

Type of program: Social insurance system.

Coverage

Employed and self-employed persons in all manual jobs, dangerous occupations, and certain other professions, including household workers, artisans, teachers, and maritime workers; and students and apprentices.

Special systems for lawyers, firemen, military and police personnel, and certain other professions.

Source of Funds

Insured person: None; contract workers pay one-third of the employers' contribution.

Self-employed person: Pay variable contributions depending on the assessed degree of risk.

Employer: 0.04% to 1.3% of payroll, depending on the assessed degree of risk. The average contribution rate for industrial workers in 2017 was 2.0% of covered payroll. Employers pay two-thirds of the contribution for contract workers.

Government: Provides subsidies to cover the costs of workers in certain sectors and workers with certain contract types; contributes as an employer.

Qualifying Conditions

Must be assessed with a work injury or occupational disease. 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 the insured's 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 an assessed degree of disability greater than 10%.

The pension is based on average earnings in 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 €16,195.20.

The maximum annual earnings used to calculate benefits are €30,076.80.

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 permanent disability pension is payable abroad.

Benefit adjustment: Benefits are adjusted annually in July by ministerial decree based on 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 in the year before 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 permanent disability 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: €533.22 a month is paid if the insured requires the constant attendance of others to perform daily functions.

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

Permanent disability pension (domestic accidents after March 1, 2001): Must be 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: €256.39 a month is paid to supplement the permanent disability pension if the insured is younger than age 65, has an assessed degree of disability or loss of psycho-physical integrity of more than 20%. (If the work injuries and occupational diseases was assessed before January 1, 2007, must be younger than age 65 and have an assessed degree of disability of at least 34%, have lost all capacity for work, or be a risk to co-workers or workplace safety.)

Benefit adjustment: Benefits are adjusted annually in July by ministerial decree based on 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 of 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 insured's average daily wage received in the 30 days before leaving the harmful work position is paid. If the insured has changed employment, the amount is 66.7% of the difference between the insured's average daily wage received in the 30 days before leaving the harmful work position and the remuneration received in the new employment.

Workers' Medical Benefits

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

Survivor Benefits

Survivor pension

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

Average earnings are based on the deceased's earnings in the year before the date of the accident or the onset of the occupational disease that resulted in 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).

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

Other dependent's pension: If there is no eligible widow(er) or orphan, 20% of the deceased's average earnings is paid to each dependant parent or to dependent brothers and sisters living with the deceased.

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

The maximum combined survivor pension is 100% of the deceased's average earnings (up to €30,076.80 if the death occurred on or after January 12, 2014).

Funeral grant: A lump sum of €2,136.50 is paid to the person who paid for the funeral.

Fatal accident lump-sum 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 (https://www.inail.it/) administers the program through provincial offices and collects contributions for all workers outside of the agricultural sector. National Social Security Institute (https://www.inps.it/) collects contributions for agricultural workers.

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, 2012, 2014, 2015 (involuntary unemployment), and 2016.

Type of program: Social insurance system.

Coverage

Private-sector employees and apprentices. Certain self-employed persons and workers with atypical contracts, including doctorate students, are covered for the DIS-COLL unemployment benefit only.

Exclusions: Certain self-employed persons and most public-sector workers.

Source of Funds

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

Self-employed person: 0.51% of income (DIS-COLL).

Employer: 1.61% of gross earnings plus an additional 1.4% of gross earnings for workers with fixed-term contracts. For the special wage supplement, an additional 0.6% of gross earnings for employers with less than 50 employees or 2.0% for employers with 50 or more employees. For employers not covered by the special or ordinary wage supplement, 0.45% to 0.65% for the wage supplement funds, depending the number of employees. Additional contributions from 9% to 15% are paid for employers with a history of higher unemployment costs.

There are no maximum earnings used to calculate contributions.

Government: Covers administrative costs and provides subsidies (disoccupazione agricola) for agricultural workers.

Qualifying Conditions

Full unemployment benefits

General unemployment benefit (NASpI): Must have at least 13 weeks of coverage in the last four years, including at least 30 days in the last 12 months before unemployment began. Must be involuntarily unemployed or have resigned for just cause with the agreement of the employer; be registered at an employment office and capable of, and available for, work; not be receiving any other benefits, and have annual income from work of up to €8,145 from the last year. The claim must be made within 68 days after unemployment begun.

Unemployment benefit for atypical workers (DIS-COLL): Must be involuntarily unemployed and have at least three months of contributions in the last calendar year before unemployment began, including at least one month of contributions in the year that unemployment began.

Partial unemployment benefits

Ordinary wage supplement (CIGO, cassa integrazione guadagni ordinaria): Paid to industry and construction workers 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 (CIGS, cassa integrazione guadagni straordinaria): Awarded by ministerial decree to insured persons with at least 90 days of employment with the company and 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.

Bilateral and alternative bilateral solidarity funds (fondi di solidarietà bilaterali and fondi di solidarietà bilaterali alternativi): Paid to insured persons working in firms with more than five employees, who are not covered by the ordinary or special wage supplement, if there is a reduction in the work week due to restructuring or a change in activity.

Supplement wage fund (fondo di integrazione salariale): Paid to persons working in firms with more than five employees, who are not covered by wage supplements or a bilateral solidarity fund.

Unemployment Benefits

Full unemployment benefits

General unemployment benefit (NASpI): 75% of the insured's average monthly earnings up to €1,208.15, plus 25% of average monthly earnings above €1,208.15, is paid after an eight-day waiting period for the first three months. Thereafter, the benefit is reduced by 3% for each additional month, up to 24 months. The total duration is half the number of weeks of contributions in the four years before unemployment began.

Average monthly earnings are based on the insured's earnings used to calculate contributions in the last four years.

The maximum monthly general unemployment benefit is €1,314.30.

Unemployment benefit for atypical workers (DIS-COLL): 75% of the insured's average monthly earnings up to €1,208.15, plus 25% of average monthly earnings above €1,208.15, is paid for three months. The benefit is reduced by 3% for each additional month, up to six months (depending on the number of months of contributions).

The maximum monthly unemployment benefit for atypical workers is €1,314.30.

Partial unemployment benefits

Ordinary wage supplement (CIGO, cassa integrazione guadagni ordinaria): 80% of lost earnings caused by a reduction in contractual working hours is paid for up to 12 months if the employer is insolvent (may be renewed for an additional six months); up to 48 months if the employer restructures or changes activity.

The maximum monthly ordinary wage supplement is €1,180.76 (€982.40 if the insured's gross earnings before unemployment were less than €2,125.36).

Special wage supplement (CIGS, cassa integrazione guadagni straordinaria): 80% of lost earnings caused by a reduction in contractual working hours is paid for up to 24 months.

The maximum monthly special wage supplement is €1,180.76 (€982.40 if the insured's gross earnings before unemployment were less than €2,125.36).

Bilateral and alternative bilateral solidarity funds (fondi di solidarietà bilaterali and fondi di solidarietà bilaterali alternativi): Calculated in the same way as the ordinary and special wage supplements; alternatively, a solidarity allowance (assegno di solidarietà) may be paid up to 26 weeks in a two-year period.

The maximum monthly benefit is €1,111.80 (€925.03 if the insured's gross earnings before unemployment were less than €2,125.36).

Supplement wage fund (fondo di integrazione salariale): Calculated in the same way as the ordinary and special wage supplement; alternatively, a solidarity allowance (assegno di solidarietà) is paid up to 24 months in five-year period.

The maximum monthly benefit is €1,111.80 (€925.03 if the insured's gross earnings before unemployment were less than €2,125.36).

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 (https://www.inps.it/) collects contributions and administers the program through its branch offices and administers or provides supervision of the bilateral funds.

Family Allowances

Regulatory Framework

First law: 1937.

Current laws: 1955, 1961, 1988 (family allowances), 1999, 2006, 2007, 2008, 2013, 2016 (civil partnerships), and 2017 (poverty reduction).

Type of program: Social insurance and social assistance system.

Coverage

Social insurance: Employed persons, including employees, contract workers, and self-employed agricultural workers; welfare beneficiaries; and pensioners of the special system for self-employed agricultural workers.

Social assistance: Needy citizens of Italy, the European Union, and residents from some other countries. Must have resided continuously in Italy for at least the last two years.

Source of Funds

Insured person

Social insurance: None; contract workers pay 0.72% of gross covered earnings.

The minimum daily earnings used to calculate contributions are €48.20.

There are no maximum earnings used to calculate contributions.

Social assistance: None.

Self-employed person

Social insurance: Not applicable.

Social assistance: None.

Employer

Social insurance: 0.68% of gross covered payroll.

The minimum daily earnings used to calculate contributions are €48.20.

There are no maximum earnings used to calculate contributions.

Social assistance: None.

Government

Social insurance: Information not available; contributes as an employer.

Social assistance: The total cost (state and local governments).

Qualifying Conditions

Family allowances (assegno al nucleo familiare, social insurance, income tested): Must be a salaried worker; a part-time worker; a cooperative member; a household worker; a self-employed person; 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 non-divorced or non-legally separated spouse or a civil partner; 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 under age 18 (no limit if disabled), and dependent orphaned brothers, sisters, nieces, and nephews (if ineligible for a survivor pension).

Income test: Total family taxable income (except for pensions and social benefits) must not exceed an amount adjusted annually based on changes in the retail price index. At least 70% of the total family taxable income must come from employment.

Municipal large family allowance (assegno dei comuni, social assistance, means tested): Paid to needy families with at least three dependent children for up to 13 months.

Means test: Must have an equivalent economic situation indicator (ISEE) value less than or equal to €8,650.11.

The ISEE is an indicator used to assess a household's economic situation based on household income, property, and size, the age of people in the household, rental or mortgage costs, special needs (persons with disabilities, large families, single parents), and certain other conditions.

Inclusion income allowance (reddito di inclusione, REI, social assistance, means tested): Paid to households who meet the means test who are not receiving any unemployment benefits. Before July 1, 2018, the allowance was only paid to needy families with children, persons with disabilities, pregnant women after four months of pregnancy, and unemployed persons aged 55 or older (2018).

Means test: Must have an equivalent economic situation indicator (ISEE) value less than or equal to €6,000 and meet certain other means tests.

The ISEE is an indicator used to assess a household's economic situation based on household income, property, and size, the age of people in the household, rental or mortgage costs, special needs (persons with disabilities, large families, single parents), and certain other conditions.

Family Allowance Benefits

Family allowances (assegno al nucleo familiare, social insurance, income tested): From €0.12 to €2,294.38 a month is paid, depending on the number of family members, household income, and certain other criteria (including the number of parents and disabled family members).

Income test: The benefit is reduced with an annual income greater than €14,383.37 (for a couple with one child). Higher thresholds apply for single parents and parents with disabilities.

Municipal large family allowance (assegno dei comuni, social assistance, means tested): €142.85 a month is paid.

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

Benefit adjustment: Benefits are adjusted annually based on changes in the consumer price index.

Inclusion income allowance (reddito di inclusione, REI, social assistance, means tested): Up to €187.50 a month is paid for a one-member household for up to 18 months (may be extended for an additional 12 months); €294.50 for two members; €382.50 for three members; €461.25 for four members; €534.37 for five members; and €539.82 for six or more members.

Means test: The benefit is reduced after a threshold.

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 and finances the municipal large family allowance (assegno dei comuni).

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

Municipalities evaluate eligibility for the municipal large family allowance (assegno dei comuni).

Employers pay allowances directly to employees (except in agriculture and for household workers).