Exemption from contributions (Article 43 bis, Decree-Law 109/2018)

What is it?

The exemption from contributions allows companies to:

• refrain from paying to the Treasury Fund the TFR amounts accrued during periods covered by the Extraordinary wage compensation fund (CIGS), relating to remuneration not received as a result of a reduction or suspension of working hours (art. 44, Decree-Law no. 109/2018);
• refrain from paying the dismissal contribution normally due in the event of termination of employment.

Who is it aimed at?

It is granted to companies in bankruptcy or in special administration that:

• in 2019 and 2020 benefited from extraordinary wage subsidies (art. 44, Decree-law no. 109/2018);
• hold the relevant authorisation decree issued by the Ministry of Labour and Social Policies.

How does it work?

The request for application of the exemptions must be submitted to the Ministry of Labour and Social Policies together with the CIGS application (or when supplementing it).

The authorisation decree must specify:

• admission to the exemption;
• the estimated cost, broken down by year and separately for TFR and the dismissal contribution.

Claim

To access the contribution exemption, companies must submit an online application to INPS via the dedicated service and follow the instructions provided by the Institute (message no. 3920 of 26 October 2020) (in Italian).

Processing times of the measure

The ordinary deadline for issuing the measures is set at 30 days under Law no. 241/1990. In some cases, the law may set different deadlines.

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