The new law introduced changes to many existing rulings due to the impact of Covid-19.
Some highlights:
Recalculation of Salary Tax Bases for Public Employee Abroad
As of 1st January 2022, the criteria for calculating the tax base relating to service allowance abroad (ISE) has been changed, raising the coefficient applied to increases from x 2 to x 2.175.
However, the coefficient applied to increases remains determined as twice the basic allowance as regards the special allowances provided for personnel of the Armed Forces and Police Forces on long-term service abroad.
Quarantine Refinancing
Until 31st December 2021, time spent in quarantine either by private-sector employees equates to sickness when considering salaries. It may not be counted for a protected period.
The National Institute for Social Security (INPS) charges are refinanced by the state for 2021, up to a maximum spending limit of €976.7 million. Priority will be given chronologically, so events dated earlier take precedence. This financing is also intended to protect fragile workers.
One-time Refund
From 31st January 2020 to 31st December 2021, private sector employers with social security obligations towards INPS, excluding domestic employers, are entitled to flat rate, rather than total, reimbursements of costs incurred for those employees not entitled to INPS sickness allowance. For each calendar year, reimbursement is granted by INPS to employers on a one-off basis, with an amount equal to €600 for each employee.
It is provided only in cases where agile work cannot be carried out during the period in question. In terms of reimbursement, the employer must submit a specific online application, accompanied by a declaration certifying the periods of application of the benefit according to the process and terms as indicated by INPS.
The benefit is recognized up to a maximum total spending limit of €188.3 million for 2021, prioritizing chronologically preceding events.
COVID-19 Parental Leave
Up until 31st December 2021, employees with a cohabiting child/children under 14 may, alternatively with the other parent, abstain from work for a period corresponding in whole or in part to the duration of:
– the suspension of the classroom-based educational activities of a child
– the SARS-CoV-2 infection of a child
– the quarantine of a child following contact, wherever it may have occurred.
This benefit is also granted to parents of children with severe certified disabilities, regardless of the child’s age, for the duration of the child’s SARS-CoV-2 infection, the duration of the child’s quarantine, or in the event of the suspension of classroom-based educational activities or attendance at daycare centers which have been ordered to close.
Leave may be taken on a daily or hourly basis.
For periods of absence, an allowance equal to 50% of salary is recognized within a spending limit of €28.7 million for 2021.
Notional contributions cover the above periods.
In the case of children aged between 14 and 16, one of the parents has the right, to abstain from work without salary, allowances, or recognition of notional contributions while being protected by the ban on dismissals and maintaining their right to retain their job of work.
Conversion of Ordinary Parental Leave
Any periods of ordinary parental leave taken by parents from the beginning of the 2021/2022 school year until 22 October 2021, during periods of the suspension of classroom-based educational activities or attendance at daycare centers that were ordered to close, for the duration of the child’s SARS-CoV-2 infection or the length of the child’s quarantine can be converted into the leave in question, with the right to indemnity and are not to be calculated or compensated by way of parental leave.
Alternation between parents
For days on which a parent takes leave, does not carry out a working activity, or is suspended from work, the other parent cannot take advantage of the same leave unless they are also the parent of other children under the age of 14 with other partners who are not benefiting from any equivalent measures.
Employees enrolled in separate management and the self-employed
Working parents enrolled exclusively in the separate management system have the right, alternatively with the other parent, up until 31st December 2021, to specific leave for cohabiting children under the age of 14, for which an allowance is recognized for each day eligible for compensation equal to 50% of 1/365 of income, identified according to the calculation used to determine maternity allowance.
The same allowance is extended to self-employed parents registered with INPS. It is proportionate, for each eligible day, to 50% of the standard daily salary as established annually by law, depending on the type of self-employed work performed.
Alternation between parents
For days on which a parent takes leave, does not carry out a working activity, or is suspended from work, the other parent cannot take advantage of the same leave unless they are also the parent of other children under the age of 14 with other partners who are not benefiting from any equivalent measures.
Employees enrolled in separate management and the self-employed
Working parents enrolled exclusively in the separate management system have the right, alternatively with the other parent, up until 31st December 2021, to specific leave for cohabiting children under the age of 14, for which an allowance is recognized for each day eligible for compensation equal to 50% of 1/365 of income, identified according to the calculation used to determine maternity allowance.
The same allowance is extended to self-employed parents registered with INPS and is proportionate, for each eligible day, to 50% of the standard daily salary as established annually by law, depending on the type of self-employed work performed.
Private employers with the right to ordinary and CIGD salary supplements who suspended or reduced their working activity due to COVID-19 may apply for those employees in force as of 22nd October 2021, for COVID-19 supplements up to a maximum duration of 13 weeks for the period between 1st October and 31st December 2021.
No additional contributions are due for these supplements.
The supplements are granted up to a maximum spending limit of €657.9 million for 2021, divided into €304.3 million for ordinary supplements and €353.6 million for CIGD supplements.
This additional period is granted to employers who have already been fully authorized the 28-weeks provided by Legislative Decree 41/2021, after the authorized period.
Applications must be submitted to INPS, under penalty of forfeiture, by the end of the month following which the period of suspension or reduction of working activity began. In the initial application phase, the deadline is set as the end of November 2021.
In the case of direct payments, the employer is required to submit all necessary data to INPS for the payment, or the balance payment of salary supplements by the end of the month following that in which the salary supplement period is applied or, if subsequent, within 30 days from the adoption of the benefit. In the initial application, the terms are transferred to the thirtieth day following the date of entry into force of the Decree (21st November 2021), whichever is later.
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