I-ii.1 Ordinary benefits from the Wage Compensation Fund - CIG
3.2.1.I-ii.1 Ordinary benefits from the Wage Compensation Fund - CIG (Interventi ordinari della Cassa Integrazione Guadagni - CIG)
3.2.1.1. Aim
To guarantee workers' wages in case of a temporary lay-off or a reduction in activity of the company due to temporary events which are not attributable to the employer or to the employees or which are caused by the economic situation
3.2.1.2. Legal basis
The Wage Compensation Fund (CIG) was set up by the collective agreements of 13.6.1941 and 19.7.1941. After having been used in 1955 (Law 618 of 25.7.1955) as an anti-cyclical instrument in the cotton industry and in 1964 and 1965 (Law 433 of 23.6.1964 and Law 833 of 5.7.1965) for the whole of the industrial sector, new regulations were introduced by the Law of 20.5.1975.
The whole question of the Wage Compensation Fund was the subject of revision and renewal within the framework of Law 223 of 23.7.1991.
3.2.1.3. Contents
The following can receive payments from the ordinary CIG: workers classified as wage-earners, salaried employees or management, supervisors (intermedi) who have been temporarily laid off or are working reduced hours in industrial firms, with the exception of certain specified sectors of activity.
In addition, the ordinary CIG covers:
- members and non-members of producers' and workers' cooperatives;
- workers of other sectors depending on industrial firms, if they are working on secondary tasks directly linked with the activity of these firms;
- seasonal workers and workers who are subject to seasonal unemployment or are regularly laid off.
The rate of the ordinary CIG compensation is fixed at 80% of the gross wage the workers would have received for the hours not worked, between 0 and the limit of their contractual working hours, without ever exceeding 40 hours per week.
The compensation is paid during a continuous period of a maximum of three months, which may be extended in exceptional cases by quarters up to a maximum length of 12 months in a 2-year period.
The company which would have benefited from the wage compensation during 12 consecutive months can apply for it again after a period of normal activity of at least 52 weeks.
The compensation is paid by the employer to the workers who are entitled to it at the end of each pay period. The employer is reimbursed by the National Institute of Social Insurance (Istituto Na-zionale della Previdenza Sociale - INPS) according to specific rules. Special regulations apply to the agricultural sector.
3.2.1.4. Financial resources
The CIG is financed by employers' contributions fixed at 2.20% of the wage bill subject to contributions to the workers' pension fund administered by the INPS. This percentage is reduced to 1.90% for companies employing fewer than fifty people.
Firms benefiting from the CIG have to pay an additional contribution of 8% of the wage compensation paid to their employees; this contribution is reduced to 4% for companies employing fewer than fifty people.
3.2.1.5. Institutional support
The INPS manages the Fund. In compliance with specific rules, the company has to submit a claim to the provincial office of the INPS on which it is dependent and in particular observing the trade union consultation procedures laid down by law.
The decision to grant ordinary compensation is taken by the provincial office of the INPS, after consulting a Provincial Commission, appointed by order of the director of the regional labour office and composed of the director of the provincial labour office (who presides over it), an official from the provincial labour inspectorate, and three employers' representatives of the industry, nominated by the most representative union organisations at provincial level.
Applications for extension are also submitted to the Provincial Commission for decision.
3.2.1.6. Duration
The institution of the CIG, reformed under the terms of Law 223/91, is foreseen for an unlimited period.
3.2.1.7. Effects
In 1990, hours under the ordinary CIG amounted to 76,927,000; in 1991, 143,645,000. There was therefore a considerable increase during these two years.
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