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Publication: 1 July 2021 Latest update: 12 July 2024
What is it?
The Extraordinary Allowance to Cover the Risk of Partial Loss of Income (ISCRO) was established on an experimental basis for the three-year period 2021-2023 by the 2021 Budget Law (Article 1, paragraphs 386-400, Law no. 178/2020) and recognised in full, starting from 1 January 2024, with the 2024 Budget Law (Article 1, paragraphs 142-155, Law no. 213/2023).
Who is it aimed at?
It is aimed at workers enrolled in the Separate Pension Scheme (Gestione Saparata) who carry out self-employed work as a regular profession (Article 2, paragraph 26, Law no. 335/1995).
How does it work?
START DATE AND DURATION
The benefit:
- is paid for six months, starting from the day following the date of submission of the claim;
- may not be requested in the two-year period following the year in which it begins to be used.
WHAT AM I ENTITLED TO?
The amount:
- is equal to 25%, on a half-yearly basis, of the average of the income from self-employment declared by the individual in the two years preceding the year prior to the submission of the claim. Example: if the declared income for the years 2021 and 2022 is equal to six thousand euro and five thousand euro respectively, that which is due:
- determine the average income (6,000 euro + 5,000 euro = 11,000/2 = 5,500 euro);
- divide the result by 2 (half-yearly basis 5,500 euro/2 = 2,750 euro);
- multiply the result by 25% (2.750 x 25% = 687,50 euro);
- Monthly
- must not be less than 250 euro;
- must not exceed 800 euro.
The amounts are calculated each year on the basis of the change in the ISTAT index of consumer prices for the blue- and white-collar households compared to the previous year.
The benefit
- contributes to the formation of income;
- does not involve the crediting of imputed contributions.
Only income from self-employment will be considered and set out in the tax return in the RE, RH or LM panel, respectively in the case of:
- individual professional activity;
- participation in associated studies;
- subjects under the flat-rate scheme.
Income from work will not be considered for:
- employed work;
- parasubordinate work;
- from participation in undertakings.
Beneficiaries of the ISCRO allowance (Extraordinary Allowance to Cover the Risk of Partial Loss of Income) are required to participate in professional refresher courses.
The criteria and the methods for defining the courses and their financing are set out by decree of the Minister of Employment and Social Policies in concert with the Minister of Economy and Finance (after having reached an agreement during the Permanent Conference for relations between the State, the Regions and the Autonomous Provinces of Trento and Bolzano-Alto Adige).
WITHDRAWAL OF BENEFIT
Law no. 213/2023 establishes that the right ceases to exist:
- upon termination of the VAT number registration during the period of payment of the allowance (Article 1, paragraph 151);
- due to entitlement to direct pension benefit (Article 1, paragraph 144, letter a), and paragraph 146);
- upon enrolment in other compulsory social security schemes (Article 1, paragraph 144, letter a), and paragraph 146);
- Holders of the Inclusion Allowance (Article 1, paragraph 144, letter b), and paragraph 146).
Claim
REQUIREMENTS
The beneficiary must comply with all the requirements provided for:
- not to be the holder of direct pension benefit;
- not to be insured with other compulsory social security schemes on the date of submitting the claim;
- not to be a beneficiary of the Inclusion Allowance for the entire period of use of the ISCRO allowance, under penalty of forfeiture of the benefit;
- to have produced an income from self-employment, in the year prior to the submission of the application (reference year), less than 70% of the average income from self-employment relating to the two years prior to the reference year. Example: if the claim is submitted in 2024, the income to be considered is that resulting from the 2023 tax return (reference year), which must be less than 70% of the average self-employed income of the years 2021 and 2022 (two years prior to the reference year);
- to have declared, in the year prior to submitting the claim, an income of no more than 12 thousand euro, calculated annually on the basis of the change in the ISTAT index of consumer prices for the blue- and white-collar households compared to the previous year;
- to comply with the compulsory social security contributions;
- to be the holder of an active VAT number for at least three years, at the date of submitting the claim, for the activity that led to registering with the current social security scheme;
- to self-certify, at the time of submitting the claim, the income generated for each relevant year, if not already available to the Institute.
For the subsequent verification of the aforementioned requirements, INPS shall communicate to the Italian Revenue Agency the identification data of the subjects who have made a claim.
Subsequently, the Revenue Agency informs INPS of the outcome of the findings from the verification of the income requirements in the manner and within the terms defined by cooperation agreements between the parties.
INCOMPATIBILITY
The ISCRO allowance is incompatible with:
- direct pensions;
- NASpI, DIS-COLL, ALAS unemployment benefits and intermittent employment allowance for entertainment industry workers;
- elective and/or political offices that include, as remuneration, function allowances and/or other emoluments other than the attendance token only.
HOW CAN I CLAIM?
The claim must be submitted exclusively online, by 31 October of each year, by logging in to the service with your credentials.
Alternatively:
- via the Contact Centre on 803 164 from Italian landlines (free of charge) or 06 164 164 from mobile phones (for a fee, depending on the tariff applied by the various operators);
- by contacting the patronage institutes and intermediaries of the Institute through their the online services.
Processing times of the measure
The deadline to define the decision was set at 30 days by the Regulation for the definition of the terms to conclude the administrative proceedings adopted by the INPS pursuant to Article 2 of Law no. 241/1990.
The table (pdf 205KB) attached to the Regulation shows both the deadlines for defining the decisions established by the Institute that are longer than the normal 30-day period, and the indication of the relative manager.