The Italian system
The Italian Social Security system is managed by the National Social Security Institute (INPS), which provides benefits to employees and the self-employed in case of illness, maternity or unemployment. It also provides family allowances and benefits for the elderly and disabled.
Pensions1
All people legally working in Italy have the same benefits. Their employers register them with INPS and contributions are made directly from their gross salary each month. Contribution rates and benefits vary depending on the industry, though approximately two-thirds of pension contributions are paid by employers and one-third is paid by the employee. Self-employed people must register and pay contributions directly themselves based on their yearly income.
Contributions paid give the right to receive a state pension when the required age* and number of years of work are achieved.
Sickness benefits
INPS pays up to 50 percent of an employee’s average daily wage for absences from work due to sickness. This allowance is payable from the fourth day of illness for a maximum period of 180 days in a calendar year.
Maternity and parental benefits
Employed and self-employed people can benefit from maternity leave, though self-employed and contract workers must meet contribution and income criteria. In general, expectant mothers are entitled to paid leave for two months before childbirth and three months after it. The benefit is 80 percent of the average daily salary. Both parents can ask for a further optional leave with a significant reduction of the salary. During the first years of the child’s life, parents can benefit from some days off work if their child is unwell.
Work-related disability pensions
A disability pension is paid to employees who are declared unable to work by an INPS doctor and who have paid social security contributions for at least five years – three in the five years before the application. The pension is not permanent because the disability status can change.
WARM UP
Which of these two Italian institutions is the oldest?
a. The National Pension Fund
b. The Maternity Fund
MORE
1 The first pensions in Italy were paid to four workers from Vercelli in 1907.
2 In your opinion, what is the appropriate age to stop working? Do you think it should depend on your age and the contributions required by the law, or do you think there should be more individual freedom?