The Extraordinary Wage Fund has been extended to all sectors and granted to all companies with more than 15 employees for reasons of company reorganisation (also to implement transition processes), company crisis and solidarity contracts. For all shock absorbers, a single ceiling of 1,199.72 euros has been introduced. This increases the amounts by more than 200 euros for people with a salary of up to 2,159.48 euros. For employers employing more than 15 employees may be granted a further period of Extraordinary Wage Fund of twelve months, which cannot be further extended. The workers involved must follow a training course. Companies hiring will receive an economic incentive equal to 50% of the remaining – authorised and not used – Extraordinary Wage Fund.
As of 1 January 2022, the establishment of solidarity funds is mandatory for employers who do not fall within the scope of ordinary wage supplementation (Article 10 of Legislative Decree no. 148 of 2015) and who employ at least one employee, and funds already established on that date must comply with the new provisions by 31 December 2022. Failing this, the employers in the relevant sector will join, as of 1 January 2023, the Italian Social Body wage integration fund, to which the contributions already paid or otherwise due by the employers themselves will be transferred (Article 1, paragraph 204).
For the years 2022 and 2023, the expansion contract is extended and the size threshold for access to it is reduced – from 100 to 50 employees – also calculated in total in the hypothesis of stable aggregation of companies with a single production or service purpose (Article 1, paragraph 215).
In the two-year period 2022-2023, in order to cope with corporate reorganisation processes and situations of particular economic difficulty by employers falling within the scope of the extraordinary wage supplement (under Article 20 of Legislative Decree 148/2015) and having exhausted the extraordinary wage supplement treatments, an additional extraordinary treatment is provided for a maximum of 52 weeks usable by 31 December 2023 (Article 1, paragraph 216).
The Budget Law also introduced important measures to facilitate and incentivise the hiring of certain categories of workers as well as measures to support female employment.
Key Action Points for Human Resources and In-house Counsel
- Companies hiring will receive an economic incentive equal to 50% of the remaining – authorised and not used – Extraordinary Wage Fund.
- For all shock absorbers, a single ceiling of 1,199.72 euros has been introduced. This increases the amounts by more than 200 euros for people with a salary of up to 2,159.48 euros.
- Employers employing more than 15 employees may be granted a further period of twelve months for the Extraordinary Wage Fund, which cannot be extended further. The workers involved are required to follow a training course.