Calculating contributions, thirteenth month’s payment and annual leave for domestic workers

What is it? 

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.

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Who is it aimed at? 

It is aimed at employers and domestic workers.

How does it work? 

The online simulator 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. 

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The thirteenth month’s payment corresponds to a twelfth of the whole yearly remuneration that the employers pay to their family workers each year by December for the Christmas holidays. The thirteenth’s payment accrues, within the limits of the retention period of the post and for the part that is not paid by the competent institutes, also during periods of absence due to:

• illness;
• workplace accident;
• maternity leave.

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. 

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. 

Domestic workers are entitled to 26 days of annual leave (excluding Sundays and public holidays) to be taken:

• regardless of the duration of the working time;
• for each year of service with the same employer;
• taking into account the needs of both the worker and the employer from June to September, without prejudice to the possibility of an alternative agreement between the parties.

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. 

To find the number of hours equivalent to one day of leave for hourly paid workers, divide the average monthly hours worked by 26.

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 pay contributions also during annual leave. A worker who has not completed one year’s service, provided the probationary period has been successfully completed, is entitled to 1/12 (one twelfth) of annual leave for each month of actual service rendered (a whole month shall be deemed to be a fraction equal to or greater than 15 calendar days). 

Annual leave may not be granted during the following periods: 

• dismissal notice period;
• illness or injury periods.

For the purposes of the calculation, the year’s fractions shall be calculated in twelfths and rounded up.