There salary to be used, by the employer, as a basis for calculating social security and welfare contributions; it may not be less than the established payment amount by laws, regulations, collective bargaining agreements or individual contracts, if a salary of a higher amount than the one provided for by the collective agreement derives (article 1, paragraph 1 of Legislative Decree no. 338 of 9 October 1989, converted into Law no. 389 of 7 December 1989).
The employers, which do not adhere to the rules established by collective bargaining, must comply with the salary established by the collective regulations.
In case of multiple collective agreements for the same category, the salary to be assumed as the basis for the calculation of social security and welfare contributions is that established by the collective agreements stipulated by the labor unions of workers and employers comparatively more representative in the category (INPS Circular no. 40 of 20 February 1996).
The daily amount determined according to the criteria identified above, cannot be less than the minimum daily salary established at the beginning of the calendar year. The daily minimum is established by INPS in January of each year and is equal to 9.50% of the amount of the minimum pension payment in force at 1 January (Article 7, Law no. 638 of 11 November 1983 and subsequent modifications).
Compliance with the minimum daily salary is not due in case of social security benefits. Therefore, the minimum amount does not need to be complied with in case of disbursement of benefits for layoffs, sickness, maternity and accidents.
To summarise, to determine the taxable contribution, the following conditions must be met:
- if the actual salary is higher than the minimum and the contractual amount, the contribution must be calculated on the effective salary;
- if the actual salary is lower than the minimum or the contractual amount, it must be adjusted to the higher of the two.
For part-time workers, the minimum amount is not daily but hourly, and it is obtained by comparing the daily minimum to the weekly working days at normal time and dividing the amount thus obtained by the number of weekly hours provided for by contract for full time work. If the worker is paid monthly and works a shorter week, the number of days to be considered are always six; if he is paid by the hour, non-working Saturday must be excluded.
For some categories of workers, the contributions are due on agreed upon salaries in place of the actual ones, similar to Italian dependent workers of Italian companies or companies operating in Italy, sent abroad to non-affiliated foreign countries (article 4, paragraph 1, Decree-Law no. 317 of 31 July 1987, converted with amendments by Law no. 398 of 3 October 1987).
For workers abroad, the salaries are set by decree of the Ministry of Labour and Social Policy issued by 31 January of each year.