News n.6/2024
Article 1 of Budget Law No. 213/2023, in paragraphs 180-182, introduced for pay periods from January 1, 2024, a 100 percent exemption of the share of IVS social security contributions, payable by female workers with permanent employment relationship, under the following conditions and duration:
Mothers of three or more children, until the youngest child turns 18, for the three-year period 2024-2026;
Mothers of two children, until the youngest child turns 10, introduced on an experimental basis, for the period from January 01, 2024 to December 31, 2024 only.
Domestic work relationships are excluded.
In its Circular No. 27 dated Jan. 31, 2024, the Inps Social Security Institute provided guidance and instructions for the management of social security obligations related to the contribution exemption measure under discussion.
Employers who may recognize the exemption
The exempt employment relationship can be held with:
Private employers, including non-entrepreneurs;
agricultural employers;
public employers;
Employers of domestic labor relations are excluded.
Female workers eligible for exemption
Eligible for the exemption are all working mothers, with the exclusion of workers in the domestic work sector, who hold an employment relationship of indefinite duration, whether full-time or part-time, including apprenticeships. If a fixed-term employment relationship is converted to permanent, the exemption can be legitimately applied from the month of conversion to permanent.
The measure is, in addition, applicable to permanent employment relationships established in implementation of the associative bond entered into with a labor cooperative pursuant to Law No. 142 of April 3, 2001.
Finally, given the substantial equalization of recruitment for the purpose of administration with employment relationships, the contribution exemption under consideration also applies to permanent employment relationships for the purpose of administration.
Female workers must be mothers of three or more children, the youngest of whom is under 18 years of age;
on an experimental basis, for 2024 only, the exemption also applies to working mothers of two children, the youngest of whom is under 10 years of age.
Fulfillment of the requirement crystallizes on the date of the birth of the third or subsequent child (and for 2024 only on the date of the birth of the second child), producing no forfeiture of the right to benefit from the contribution reduction in question even in the case of the premature death of one or more children or the eventual departure of one of the children from the family unit or, again, in the cases of noncohabitation of one of the children or exclusive custody of the father.
Structure and extent of exemption
The exemption is equal to 100 percent of the employee's IVS social security contribution (9.19 percent), up to a maximum of 3,000 euros per year, to be prorated on a monthly basis, without prejudice to the rate at which pension benefits are computed.
Conditions for eligibility for exemption
The exemption is equal to 100 percent of the worker's contribution (9.19 percent), up to a maximum limit of 3,000 euros annually, to be prorated on a monthly basis (3,000/12 = 250 euros maximum monthly), thus taking effect only up to the maximum annual salary of 32,644.18 euros (32,644.18 x 9.19 percent = 3,000 euros).
For labor relations being established,
the exemption may run from the establishment of the employment relationship, subject to the existence of the legitimating conditions.
For relationships established or terminated during the month,
The monthly exemption threshold of 250 euros is to be reproportioned by dividing 250 euros by 31 (250/31) = 8.06 euros; the daily exemption determined in this way will be multiplied for each day of use of the contribution exemption.
The maximum threshold of 3,000 euros must be considered to be valid also in the case of part-time employment relationships, for which, a resetting of the amount of the exemption due is not required.
In the event that the female employee holds more than one employment relationship, she may avail herself of the exemption under discussion for each employment relationship.
The facility is not to be understood as a recruitment incentive and, therefore, is not subject to the application of the general principles on employment incentives established by Article 31 of Legislative Decree No. 151/2015; moreover, as it takes the form of an exemption in favor of the female employee only, it is not necessary for the employer to possess the DURC.
Coordination with other facilities
The contribution waiver under discussion is found to be alternative to the exemption on the worker's 6%-7% contribution share provided by the same Budget Law 2024 in Art. 1, paragraph 15, and the exemption more favorable to the worker prevails.
The Inps specifies that from the month following the enjoyment of one of the two exemption measures, one can switch to the different measure of exemption of the employee's own share (for example, for a mother of two children, if during 2024 the youngest child turns 10 years of age, if the requirements are met, from the month following the month of the child's age achievement, she can start enjoying the alternative IVS 6% or 7% exemption provided by Article 1 paragraph 15 of the Budget Law 2024).
Operating Instructions
i datori di lavoro autorizzati espongono le lavoratrici per le quali spetta l’esonero valorizzando, a partire dalla denuncia Uniemens di competenza del mese di febbraio 2024, nell’elemento <Contributo>, la contribuzione dovuta calcolata sull’imponibile previdenziale del mese.
The causal codes established are:
"ELA3," having the meaning of "Exemption Article 1, Paragraph 180, Law No. 213/2023," in the case study where there are at least three children;
"ELA2," having the meaning of "Exemption Article 1, Paragraph 181, Law No. 213/2023," in the case study where there are two children.
L’elemento <IdentMotivoUtilizzoCausale>, deve essere presente due volte, valorizzato con il codice fiscale del primo e del secondo figlio, qualora si intenda usufruire del codice “ELA2”; oppure deve essere presente tre volte, valorizzato con il codice fiscale dei tre figli, qualora di intenda usufruire del codice “ELA3”.
The tax code of the youngest child must be mandatory.
If the worker is the mother of more than three children, it is sufficient to enter the tax codes of only three children, the important thing being that the tax code of the youngest child is entered.
Any exemption due for January 2024 and February 2024, may be handled as arrears, being able to be shown in the Uniemens flows of the three months following the date of publication of News Inps (March, April and May 2024).
In the event that employers have shown in the Uniemens flows of January 2024 or in the months of the child's birth, the exemption on the IVS share provided for in Article 1 paragraph 15 of the Budget Law 2024 (exemption 6% or 7%), it is necessary to proceed to the return of the amount already equalized, valuing the following elements:
"M054", newly created, having the meaning of "Restitution 6% share on the relief Article 1, paragraph 15 of the Budget Law 2024"
"M055", newly created, having the meaning of "Restitution 7% share on the relief Article 1, paragraph 15 of the Budget Law 2024."
Employers who have suspended or ceased operations and want to make use of the exemption due to their former female workers can make use of the regularization procedure (Uniemens/vig).
Finally, it is announced that INPS is implementing an application on its institutional portal www.inps.it, in which female workers will be able to independently enter their children's tax codes.
We will update you when the INPS will make known, by appropriate message, how to access and how the information that will be received by the Institute will be handled.
It should be noted that, failure of the worker to provide the tax codes will result in the revocation of the benefit enjoyed, according to the instructions that will be subsequently provided by the Social Security Institute.
News study:
Attachment: Facsimile declaration for communication of child tax codes
References: News Inps No. 27, January 31, 2024
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