Factsheet for case IT-2020-9/411 – Updated – measures in Italy
|Country||Italy , applies nationwide|
|Time period||Temporary, 23 February 2020 – 31 December 2021|
|Type||Legislations or other statutory regulations|
Employment protection and retention
– Income support for people in employment (e.g. short-time work)
|Author||Lisa Dorigatti (University of Milan) and Eurofound|
|Case created||09 April 2020 (updated 10 May 2021)|
|Related ERM support instrument|
This exceptional and temporary measure was set by Decree-Law No. 18/2020 of 17 March 2020 and is finalised to allow the utilisation of the ordinary wage guarantee fund (Cassa Integrazione Guadagni Ordinaria, CIGO) and the wage integration fund (Fondo di Integrazione Salariale, FIS) for temporary suspensions of work or reductions of working time due to the COVID-19 pandemic. Moreover, it introduces a new support instrument (Cassa Integrazione in Deroga, CID) which benefits all companies with even one employee, and it simplifies the procedures for activating this measure.
Employers who suspend or reduce their activity for events attributable to the COVID-19 epidemic can accede to the Ordinary Wage Guarantee Fund (CIGO) or the Wage Integration Fund (FIS) for a maximum duration of nine weeks starting from 23 February 2020 until the end of August 2020. The periods of utilisation of the CIGO and the FIS for "COVID-19" reasons are excluded from the calculation of the maximum duration of ordinary treatments. Moreover, companies making use of the benefit are exempted from the additional contribution that is normally imposed on companies benefiting from wage subsidies. The decree law introduces a special measure (CID) for private employers not covered by the ordinary benefits, i.e. those employing less than 5 employees. However, domestic workers are excluded from the benefit. The amount of the benefit depends on the previous remuneration: for gross monthly wages below €2,159.48, the benefit amounts to €939.89; for gross monthly wages above €2,159.48, the benefit amounts to €1,129.48.
The maximum spending limit is set at €1,347.2 million (for CIGO and FIS) and €3,293.2 million (CID), for the year 2020; once reached, INPS will not consider further requests.
The number of hours authorized in August 2020 is declining (279.3 million hours), from the peak reached in May 2020, when the authorizations for the health emergency amounted to 849.2 million hours (in line with what was already authorized in April 2020, i.e. 832.4 million hours). For the sake of comparison, the annual number of authorised hours in the worst year after the financial crisis, in 2010, was 1,198.5 million).
Employees in standard employment
||Does not apply to businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Trade unions are involved in the management of the measures as an agreement on the duration of work suspension is essential in all companies with more than 5 employees.
The measure was supported by social partners. Trade union lamented delays in the payment of the benefit and the lack of income support for workers suspended from work, especially for what concerns extraordinary benefits, which had to be authorised by the Regions.
Eurofound (2020), Ordinary wage guarantees and new regulation of the exceptional wage guarantee fund, case IT-2020-9/411 (measures in Italy), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.