I-v.2 Fiscalisation of social insurance contributions
3.5.2.I-v.2 Fiscalisation of social insurance contributions (Fiscalizzazione degli oneri sociali)
3.5.2.1. Aim
To limit labour costs.
3.5.2.2. Legal basis
- Decree-Law 15 of 7.2.1977, converted into Law 102 of 7.4.1977 and subsequent provisions;
- Decree-Law 338 of 9.10.1989, converted into Law 389 of 7.12.1989;
- Decree-Law 18 of 19.1.1991, converted into Law 89 of 20.3.1991;
- Decree-Law 71 of 22.3.1993, converted into Law 151 of 20.5.1993;
- Decree-Law 299 of 16.5.1994, converted into Law 451 of 19.7.1994, Art. 18.
3.5.2.3. Contents
The fiscalisation of social insurance contributions has the effect that firms operating in certain sectors are granted a reduction in their social insurance contributions.
The following reductions are available for firms meeting the conditions of entitlement in the following sectors:
- industrial and craft enterprises in the manufacturing and extraction sectors and investment-good producers in the metal-smelting industry; shipping companies and firms listed in the transport company register: reduction in contributions of 4.02% (10.22% in the Mezzogiorno);
- hotel and catering establishments, thermal baths, public facilities, cinemas, travel agents, out-door tourist facilities, trading companies specialised in export trade, other firms with more than 15 employees and community and charitable institutions, foundations and associations provid-ing care services, etc.: reduction of 1.82%;( 2.82% in the Mezzogiorno);
- employers operating in the agricultural sector in central and northern Italy: reduction in contribu-tions of 5.62%;
- employers operating in the agricultural sector in the Mezzogiorno: until 31.12.1996 reduction of 60% on all contributions.
In addition to these rates, the following benefits are available for the period: 1.1.1992 to 31.12.1993:
- additional reduction of 1.40% on health insurance contributions for private and public sector employees in craft and industrial enterprises in all extractive and manufacturing sectors, for invest-ment-good producers in the engineering industry, for shipping companies and for firms operating in the Mezzogiorno and listed in the register of road haulage companies;
- additional reduction on the above-mentioned contribution for the same enterprise category, but for firms operating outside the Mezzogiorno of 1.44%;
- reduction of 1.0% for hotel and catering establishments, thermal baths, public facilities, cinemas, travel agents, outdoor tourist facilities, trading companies specialised in export trade, other firms with more than 15 employees and for community and charitable institutions, founda-tions and associations providing care services;
- further reduction in the payment of the above contributions of 0.40% for construction firms;
- further reduction in the above-mentioned contributions of 1.00% for profit-oriented care compa-nies with between 8 and 15 employees.
These reductions are not available for employees who:
a) are not registered with the social insurance institutions;
b) are registered with the social insurance institutions for a number of working hours or days that is less than the number of hours or days actually worked;
c) are paid wages whose rates are below those stipulated in the national collective agreements.
Regulations subsequently issued (Art. 18, Law 451/94) confirmed the additional reductions in the payments to the national health service as of 1.1.1994 as listed above.
3.5.2.4. Institutional support
Treasury and INPS.
3.5.2.5. Financial resources
The Ministry of Labour provided LIT 2,200 billion for the fiscalisation of social insurance contributions in 1993; under Law 451/94 (Art. 18, § 3) the Treasury is to provide LIT 2,063 billion, LIT 2,130 billion and LIT 2,200 billion for 1994, 1995 and 1996 respectively.
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