Italy: Social security rate increase and separate scheme for self-employed persons

Unemployment compensation is now possible for workers in Italy who operate as ‘coordinated and continuing associates’ (known as DIS-COLL). The buffer also extends to research fellows and doctoral researchers.

The change is part of the new freelance work provisions (Italian Law 81/2017 ) and this compensation, introduced temporarily in 2015 as part of the Jobs Act, had been postponed until it was finally made permanent on 1 July 2017.

Individuals operating as coordinated and continuing associates now have this shock absorber available to them, and it has also been extended to cover research fellows and doctoral researchers with scholarships.

In light of these changes, the Law has provided for a lending rate to be accounted for in the INPS (Italian Institute of Social Security) separate scheme for self- employed workers, of 0.51%.

This total rate is now applicable for coordinated and continuing associates, fellows and doctoral researchers with scholarships and also for directors and statutory auditors who are not entitled to receive the social shock absorbers.

Naturally, neither the DIS-COLL nor the consequent contribution increase applies to freelancers registered with the INPS separate scheme as self-employed workers.

Application

The following three types of rates now apply:

Individuals without other mandatory social security coverage, who are not retired and do not hold a VAT number, whose remuneration arises from:

  • offices of director, statutory auditor or auditor of a company, associations and other entities with or without a legal personality
  • all coordinated and continuous collaborations, including on a project basis, included in an occasional collaboration
  • doctoral research, cheque, scholarship.
 
Rate of 33.23% consisting of:
32% base rate
0.72% additional rate
0.51% new DIS COLL rate

Individuals without other mandatory social security coverage, who are not retired and do not hold a VAT number:

  • members of committees and boards
  • directors of local entities
  • door-to-door salespeople
  • occasional freelance relations
  • profit sharing agreements (which are ongoing)
  • doctors receiving specialisation training.
Rate of 32.72% consisting of:
32% basic rate
0.72% additional rate
 Individuals that receive a pension or other mandatory retirement protection.  Single rate of 24%

Action

The contribution burden for the above individuals is payable by the principal in the amount of two thirds, and by the associate in the amount of one third. The rate of 33.23% is applied to remuneration paid from 1 July 2017. Any settlements relative to remuneration paid in the months of July, August and September can be made without application of penalties by 16 October 2017 insofar as the payments or by 31 October 2017 insofar as the UniEmens flows.

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