Pursuant to Article 1 of Law Decree no. 4/2019, “citizenship income” is defined as a “fundamental measure of active labour market policy” aimed at fighting poverty, inequality and social exclusion.
Requirements and rules
Applicants of the citizenship income shall be: Italian citizens, European Union citizens or residents that have been living in Italy for a period of at least 10 years (the last two, in a continuous way).
In order to receive the citizenship minimum wage, the family yearly income of the applicant shall be inferior to Euros 9.360,00, whereas family real estate cannot exceed Euros 30.000,00 (excluding the first house).
Depending on the family’s income of the recipient, the benefit cannot exceed the maximum amount of Euros 9.360,00 and the minimum amount of Euros 480,00, on a yearly basis. In particular, according to the Government projections, people without a family could be entitled to a monthly income of up to about Euros 780,00, whereas people with a family could be entitled to a monthly income of up to about Euros 1280,00.
The benefit is paid with a pre-paid card and can be enjoyed for a maximum of 18 months, possibly renewable after a monthly interruption, during which the Social Security Body (“INPS”) will assess if there are still all necessary requirements.
Beneficiaries shall adhere to a personalised path of job research, assisted by the so-called “navigators”.
During this path, recipients shall accept at least one of three job offers to be considered “suitable”, such as: in the first year, the ones concerning jobs located between 100 and 250 kilometres from the recipient’s residence; after one year, any offer throughout Italy.
If recipients refuse more than two job offers, they will lose the right to citizenship income.
Special incentives for Companies
Companies hiring with an open-ended employment contract, beneficiaries of the citizenship income are entitled to a social security discount equal to the monthly amount received by its beneficiaries at the moment of recruitment.
The Company’s facilitation shall not exceed Euros 780,00 on a monthly basis and shall not be inferior to 5 monthly installments overall.
If the hiring takes place with the help of an employment agency, the reduction will be halved.
“Quota 100” early retirement-scheme
For the years 2019-2021, Law Decree no. 4/2019 introduced also an anticipated retirement scheme intended for at least 62 years old and employees having accrued at least 38 years of social security contributions.
The expression “Quota 100” refers to the concept that pension will be paid when the sum of an employee’s age plus his/her years of contributions reaches the number 100.
The benefit cannot be cumulated with any other labour income, with the only exception of occasional work incomes up to a maximum of gross Euros 5.000,00 per year.
Private employees who have reached the pension requirements on December 31, 2018, will be entitled to retirement on April 1, 2019, whereas private employees who will reach the requirements from January 1, 2019, will be entitled to retirement after 3 months from the achievement of the conditions.
Otherwise, for all public employees who have achieved the pension requirements by the date of entry into force of the Decree (January 29, 2019), the first exit date (the so-called “window”) is established for August 1, 2019.