HOW TO CALCULATE National insurance PAYMENTS, 13TH MONTH’S PAY AND ANNUAL LEAVE
To calculate national insurance contributions in accordance with the agreed rate of pay, the INPS provides an Online Calculator for employers and workers, which can be accessed here:
All that is needed is to enter the data requested in the fields provided and click on the Go arrow (“Avanti”) to get the calculated national insurance contributions which the employer must pay each month.
13th month pay
The “13th month’s pay” (tredicesima mensilità) is an annual Christmas bonus, equal to one twelfth of a whole year’s earnings, which employers must pay to their domestic workers during December. Entitlement to the 13th month continues to accrue during absence from work due to sickness, accidents at work or maternity, subject to the limits of the statutory period during which the job must be kept open, and only to the extent not covered by the relevant national insurance scheme.
If the domestic worker is employed by more than one household, each employer is required to calculate the proportion of the 13th month’s pay on the basis of the hourly rate paid.
A domestic worker is employed from 1 April to 31 December at a monthly rate of €600. The calculation is: €600 x 9 (months worked)/12 = €450
In each complete year of service with the same employer, a domestic worker is entitled, regardless of weekly hours, to a holiday of 26 working days (i.e. excluding Sundays and national holidays), to be taken (preferably, and taking into account the employer’s requirements) during the period June-September. For each day of annual leave the worker is entitled to 1/26 of his/her monthly pay (including any amount for board and lodging). If the worker is paid at an hourly rate, the number of hours worked in the previous month is taken as the reference amount and divided by 26 to give the number of hours equivalent to each day of annual leave.
A worker does 12 hours a week, and has worked a total of 52 hours in the month immediately preceding the holidays (a month being four weeks and two days). The number of hours equivalent to each day of annual leave is the number of hours worked (52) divided by 26, which is 2: given an hourly rate of €8.66, each day of annual leave gives entitlement to 2 x €8.66 = €17.32.
Employers are required to continue to pay national insurance contributions in the usual way during annual leave. Any worker who has not completed a year’s service is entitled to one twelfth of a whole year’s annual leave for each month actually worked (partial months of 15 calendar days or more counting as full months), provided that any trial period has been completed. Annual leave may not be given during a period of notice of dismissal, nor during a period off work due to sickness or accident. In calculating annual leave, incomplete years are reckoned in twelfths of a year and always rounded up.