The Social Security System in Italy offers an extensive variety of benefits, including old-age pensions and benefits for disabilities. The amount of benefits that a person can receive depends on the length of time that the individual has been working and contributing to the Italian Social Security welfare system. The level of income and earnings is also taken into account.
Italian Social Security: Basics
The Italian Social Security system offers anyone working in Italy, including citizens of the E.U or workers from outside the E.U after they receive their relevant work permits, the opportunity to obtain benefits by paying NI (National Insurance) contributions. This applies to any worker, whether they are self employed, employed by an organisaiton, an entrepreneur or an industry professional.
After paying NI contributions, an individual is entitled to illness and maternity leave, unemployment benefit, mobility benefit, family allowances and pension amounts.
However, these offerings all depend on whether the person concerned has a ‘permit of stay’ or relevant residence papers. The INPS Istituto Nazionale della Previdenza Sociale manages and runs a general scheme that covers the majority of workers within the private sector. If working in the public sector, although as of the 1st of January 2012 they were taken over by the INPS, the Istituto Nazionale di Previdenza per I Dipendenti dell’Amministrazione Pubblica (National Insurance Institute for Civil Servants) will deal with the scheme covering this job sector.
Italian Social Security Contributions
There are two types of contributions that are required to be paid when it comes to Italian Social Security. These can be either ‘Compulsory Contributions’ or ‘Voluntary Contributions’.
Compulsory Contributions involve employees and their employers, along with individuals who are self-employed where amounts have to be made based on the percentage of an individuals workers earnings. All the necessary formalities are required to be completed by the employer.
Voluntary Contributions cover individuals who are not subject to compulsory contributions but meet the required conditions to make voluntary contributions to the Italian Social Security System in order to remain qualified for benefits in the future.
For more information on Italian Social Security, Italian Payroll, Working in Italy or Contracting in Europe visit the Euro Accountancy & Finance Services website.