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Calculating contributions, thirteenth month’s payment and annual leave for domestic workers
INPS provides employers and domestic workers with an online simulator for calculating contributions as well as a guide for calculating thirteenth month’s payment and annual leave.
The service is intended for employers and domestic workers.
The calculation simulator provided by INPS allows the calculation of contributions due from the employer each month by entering the required data in the fields provided and clicking on the “Next” arrow.
The thirteenth month’s payment corresponds to a twelfth of the whole yearly remuneration that the employers must pay to their family workers by December for the Christmas holidays. The thirteenth’s payment also accrues during absences caused by illness, accidents at work or maternity, within the limits of the retention period of the post and for the part that is not paid by the competent institutes. If the domestic worker works for more than one household, each employer is required to pay the bonus month’s contribution on the basis of the hourly wage paid.
For example, if a worker has worked from 01 April to 31 December with a monthly payment of €600, the calculation is: €600 x 9 (working months): 12 = €450.
Regardless of the duration of the working time, for each year of service with the same employer, the domestic worker is entitled to annual leave of 26 days (excluding Sundays and midweek national holidays), to be taken, bearing the employer’s needs in mind, in the June-September period. During the period of holiday leave the worker is entitled, for each day, to a twenty-sixth of the monthly payment, including any compensation for food and lodging. In the case of hourly pay, the average number of hours worked in a month should be taken as a reference and divided by 26, thus obtaining the number of hours equivalent to one day’s leave.
For example, for a worker who works 12 hours a week, the total hours per week are multiplied 4.333 (one month is composed of 4.333 weeks). The result of 52 is the number of hours that make up a working month. This number is divided by the 26 days in a working month. The result is 2. Therefore, taking into account an hourly wage of €8, each day of annual leave must be paid with €16 (which is obtained by multiplying 8 by 2).
The employer must also pay contributions during annual leave. A worker who has not completed one year’s service shall be entitled to as many twelfths of the leave period as there are months of actual service completed (a whole month shall be deemed to be a fraction equal to or greater than 15 calendar days) provided that they have passed the probationary period. Annual leave may not be granted during a dismissal notice period or during a period of illness or injury. For the purposes of the calculation, the year’s fractions shall be calculated in twelfths and rounded up.