Italy: New Allowance for Dependent Children (AUU)

February 17, 2022
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From March 1, 2022, the Italian government is introducing a single and universal payment for dependent children (AUU), which constitutes a means-tested allowance, assigned monthly, for the period between March of each year and February of the following year, to households and based on the indicator of the equivalent economic situation (ISEE).

The AUU will be paid from March 1, 2022, and the following will cease to be effective:

  • support measures for families as referred in the Decree-law5 which has established temporary allowances for minors;
  • tax deductions for dependent children under 21 years of age;
  • the allowance for the family unit and family allowances limited exclusively to those families with children and orphans.

Employers are advised to inform employees that

  • To receive the AUU from March, it is necessary that those entitled submit an AUU application. For applications submitted from January 1 to June 30, the allowance runs from March. For applications submitted from July 1 onwards, the allowance starts from the month following that in which it was submitted.
  • It is only possible to apply for an updated ISEE comparable with the economic status of the family unit. For those applications with an ISEE already submitted at the time of the application, the allowance is to be calculated based on that indicator. In submitting the ISEE by June 30, the allowance is to be recalculated based on the ISEE subsequently submitted by that date.

The AUU replaces deductions and allowances for family units

From March 2022, allowances for the family unit and family checks will no longer be disbursed via payslips, and deductions for dependent children under 21 will no longer be recognized.

The AUU  replaces these benefits.

The measures in place will be extended until the end of February of the first year of application (2022), i.e., temporary allowances, allowances for family units, family allowances, and tax deductions for children under 21 years of age.

Timescales and methods for submitting applications 

Applications may, either with or without an ISEE, be submitted beginning from January 1, 2022.

Applications can be submitted during the year, and successful applications will be disbursed until February of the following year. All applications submitted by June 30 of each year may claim arrears from March.

How to submit the application

  • By accessing the “Assegno unico e universale per i figli a carico” service available on inps.it with at least level 2 SPID, Electronic Identity Card 3.0 (CIE) or National Service Card (CNS);
  • Via the dedicated Contact Centre, calling the toll-free number 803 164 (free from landlines) or 06 164 164 (from mobile phones. Charges may vary by operator);
  • Through a CAF Citizen’s Advice Bureau, making use of their free telematic services.

 Content of the application 

The application requires self-certification of certain basic information, including:

  • composition of the family unit and number of children;
  • place of residence of all members of the family unit;
  • The IBAN of one or both parents.

Applications may or may not be accompanied by an updated ISEE: the presentation of an ISEE is necessary to obtain a full allowance in line with the family’s economic status.

In the case of submission of an ISEE, the request for an updated ISEE will be possible from January 1, 2022.

In the absence of an ISEE, the application for the AUU can be submitted from January 1, 2022, with each entitled individual receiving the minimum amount established.

An overview of amounts

Families presenting an ISEE of less than €15,000 are entitled to a basic allowance of €175 for each minor. This value decreases as the ISEE increases, until stabilizing at €50 per month per child for an ISEE equal to or greater than €40,000.

Various increments are added based on

  • each child after the second;
  • large families;
  • children with disabilities;
  • mothers under 21 years of the age;
  • households with two income earners.

Furthermore, a temporary increase is foreseen for families with an ISEE of less than €25,000.

 Examples of monthly amounts due per child based on the ISEE (*) 

 

(*) In the case of not submitting an ISEE with the application, the minimum amount due for each child is referred to in the last row (“above €40,000”) in the table above.

More information

  • The allowance is due for those children indicated as being, for ISEE purposes, part of a family unit. For applications not accompanied by an ISEE, and therefore with the right to the minimum allowance, the allowance is applied for those children who fall under the ISEE based on self-certification.
  • An allowance is also payable for adult children up to 21, on the condition that they attend a professional training or degree course, have a work income of less than €8,000, or are registered as unemployed with public employment services. No age limit applies to children with disabilities.
  • The allowance is recognized on condition that at the time of submission of the application, and for the entire duration of the allowance, the applicant jointly possesses the following citizenship, residence, and right to stay requirements:
    • is an Italian citizen or of an EU Member State, or their family member, holder of the right to residence or the right to permanent residence, or is a citizen of a non-EU country in possession of an EU residence permit for long-term residents or is the holder of a single work permit authorized to carry out a working activity for a period exceeding 6 months or is the holder of a residence permit for research purposes authorized to reside in Italy for a period exceeding 6 months;
    • is subject to the payment of income tax in Italy;
    • is resident and domiciled in Italy;
    • is or has been resident in Italy for at least 2 years, even if not continuous, or is the holder of an open-ended or fixed-term employment contract with a duration of at least six months.
  • For those entitled to citizenship income, the allowance is received automatically.

 

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