Background information

Law 178 of 30 December 2020 introduces a new social shock-absorber instrument (called "Extraordinary indemnity for income and operational continuity", also defined as the Wage Guarantee Fund for self-employed workers) for supporting income of those professionals and self-employed workers member to INPS' Separate Management Fund damaged by the COVID-19 pandemic and for ensuring the continuity and relaunch of their activity. The indemnity will be managed by the National social security institute (INPS) and covers experimentally the three-year period 2021-2023.

Content of measure

The indemnity is targeted to those workers who, in the year preceding the submission of the application, have produced income from self-employment not exceeding €8,145 and corresponding to less than 50% of the average income from self-employment achieved in the 3 years before the submission of the application.

The indemnity is equal to 25% of the last income declared to the Revenue Agency on a six-term basis and it is paid by INPS in six solutions of an amount ranging from a minimum of €250 to a maximum of €800 per month.

The indemnity can be requested only once in a three-year period. The provision of the indemnity is conditional on participation in professional retraining. To meet the costs associated with the new service, an increase in the rate of contribution to the Separate Management Fund equal to 0.26 percentage points in 2021 and 0.51 for 2022 and 2023 was foreseen.

Use of measure

The new social safety net is paid by INPS within the spending limit of €70.4 million for 2021, €35.1 million for 2022, €19.3 million for 2023 and €3.9 million for 2024.

Target groups

Workers	Businesses	Citizens
Self-employed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social insurance	National funds

Social partners

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:

• No involvement
• Main level of involvement: N/A

Involvement

No involvement of the social partners

Views and reactions

No information available

Sources

• 30 December 2020: LEGGE 30 dicembre 2020, n. 178 (www.gazzettaufficiale.it)