When it comes to social safety nets provided for by our legislative system, the Cassa Integrazione Guadagni (CIG) is one of the best known forms. In summary, it represents an economic service provided by INPS which supplements or replaces the remuneration of workers in the presence of temporary difficulties due to the reduction or suspension of working activity, for example due to the crisis of a company or particular conditions of the socio-economic context. Just think of the period of the Covid-19 pandemic, when several companies found themselves having to reduce or suspend production with repercussions in terms of re-proportioning of the workforce and relative remuneration.
The CIG is recognized under the subordinate workers, both full-time and part-time, with a minimum seniority of at least 30 days on the date of submission of the application. Before the reform introduced with Law 234/2021 (Budget Law 2022), the minimum terms were 90 days. From 1 January 2022, the CIG treatments are also up to those who perform professional activity at home and ai apprentices. Instead, it is not up to managers, interns and trainees.
But how much is due to the worker in the Redundancy Fund? The amount of the indemnity is equal to80% of lost wages by the worker during the period not worked due to the suspension or reduction of working hours, with a maximum gross amount of € 1,222.51. For the benefits paid from 1 January 2022, the indemnity no longer provides for the distinction between different thresholds of income from work and therefore does not take into account the reference monthly salary.
There are several types of CIGamong which:
Ordinary redundancy fund (CIGO)
Extraordinary Earnings Redundancy Fund (CIGS)
Additional contribution and CIG reductions for companies
From the point of view of companies, whether or not to use the forms of redundancy fund implies additional contributions to be paid or, on the contrary, reduced contributions. In particular, both in the case of CIGO and CIGS, there is a mandatory additional contribution to be paid by companies, the amount of which is calculated on the basis of the use of wage integration treatments. This means that the more a company uses the Redundancy Fund, the higher the additional contribution to be paid, according to this scheme:
• 9% of the total pay due to the worker for the hours not worked, up to 52 weeks of recourse to the social safety net in a period of a mobile five-year period
• 12% beyond 52 weeks and up to 104 weeks of recourse to the social cushion in a mobile five-year period
• 15% over 104 weeks of recourse to the social shock absorber in a mobile five-year period
The 2022 Budget Law also introduces a regime of reduced contribution or reward, starting from January 1, 2025 for companies that have not benefited from wage integration treatments for at least 24 months from the last request, in the following percentages:
• 6% for up to 52 weeks of non-use of the social safety net in a mobile five-year period
• 9% from 52 to 104 weeks of non-use of the social safety net in a mobile five-year period
• 15% beyond 104 weeks of non-use of the social safety net in a mobile five-year period
Ordinary redundancy fund (CIGO)
The importance of a social safety net like the CIGO must be considered from a double point of view. For the worker who gets a income support and keeps the job. For the company in temporary difficulty that is raised by the personnel costs not employed and which can be reinstated once the crisis period has passed. The CIGO is aimed at workers, employees and managers of companies in the industrial and construction sectors who are suspended from work or are employed part-time and is granted in the case of:
business situations due to transitory events not attributable to the company or employees
temporary market situations
The CIGO comes paid for a period maximum of 13 continuous weekswith the possibility of being extended up to a maximum of 52 weeks. If the company has used the maximum period of CIGO before being able to submit a new application, a minimum period of 52 weeks of regular work must have elapsed. The ordinary wage supplement covering several non-consecutive periods cannot exceed 52 weeks in a mobile two-year period.
To be admitted to the CIGO regime, the company must submit the application for a concession within 15 days from the beginning of the suspension or reduction of working activity. Once the application is accepted, the company is required to anticipate the wage supplement to the worker directly in the paycheck and at the normal salary deadlines. It will then be reimbursed by the INPS. In some cases in which the company demonstrates actual financial difficulties and upon specific request of the employer, the Institute may provide direct payment of the performance.
The application must contain:
• cause of the suspension / reduction of working hours
• Estimated Duration
• total number of hours requested
• names of the workers concerned
Extraordinary Earnings Redundancy Fund (CIGS)
This type of wage integration is aimed at replacing or supplementing the salary of the workers of a company that due to internal structural situations is faced with a surplus of personnel over company productivity. Unlike the ordinary redundancy fund, the extraordinary one it is not connected to external and unpredictable eventsbut to situations related to the activity of the company itself, as in the case of production conversions, revision of the organizational or technological structure.
In particular, the CIGS can be requested by companies with at least 15 employees (including managers and apprentices, with the exception of airline companies and political parties) and only in the case of:
corporate reorganization with a maximum duration of 24 months, including continuous over a five-year period
corporate crisis with a maximum duration of 12 months, including continuous ones
solidarity contract with a maximum duration of 24 months, including continuous over a five-year period
The 2022 Budget Law introduces a extension up to a maximum of 12 months that can be requested in the event of a corporate reorganization or a crisis in the event that the parties enter into an agreement aimed at occupational recovery of workers at risk made redundant.
Also for the CIGS, the company must submit an application for a concession to INPS which must contain the provisions for the CIGO, but in this case within 7 days from the date of conclusion of the trade union consultation procedure or from the date of signing of the company agreement relating to the use of the intervention. Furthermore, the application to obtain the CIGS must be presented in via telematics and at the same time with the Ministry of Labor and Social Policies and with the territorial Labor Departments competent for the territory. Any concession takes place through specific ministerial decree usually within 90 days of submitting the application. Only at this point can the company submit to INPS, again electronically, the request for the salary integration services already granted or, if provided for in the decree, for direct payment by the Institute.
Salary supplements, when they are not due
What happens if the worker carries out other work activities during the period of suspension or reduction of working hours? The Budget Law 2022 in this case establishes theincompatibility of wage supplements. In particular, it is envisaged that the worker beneficiary of the wage supplement treatment, who, during the period of suspension or reduction of working hours, carries out subordinate work activities lasting more than six months, as well as self-employment, is not entitled to the wage supplement for the days worked.
If the worker, on the other hand, carries out subordinate work for a fixed term of six months or less, the wage supplement remains suspended for the duration of the employment relationship.
CIG digital services
With a view to digital transition, INPS is making a series of personalized digital services available to the various categories of users to improve the flow of communication and make services simpler and more accessible. On the subject of Redundancy Fund, the service of live chat info CIG which allows workers who are recipients of a direct pay wage supplement to be able to initiate a conversation with a consultant to receive information on the processing status of the applications. To use the service, simply access your MyINPS reserved area using SPID, CIE or CNS credentials, then enter the “Communicate with INPS” section, on the left in the menu, click on CIG Info and then on the “Talk to a operator”.
It should also be remembered that among the most important digital projects to be implemented, INPS is developing the CIG Single Platforma single operational hub that integrates all services and information on supplementary wage benefits available to workers and companies.