Salary increase for those who give up their pension: how it works

The incentive comes to those who choose to continue working despite being able to retire early by taking advantage of the “103 quota”. Anyone who wants this solution, called the “Maroni bonus”, will have a richer paycheck because they will also have their own social security contributions. The measure potentially concerns 45 thousand workers; In fact, most of them are those who meet the requirements of the 103 quota and will decide to continue working. Let’s see better what it is.

How does the incentive work for those who give up the 103 quota?

With the “103 quota”, the worker is allowed to retire with at least 62 years of age and 41 years of premium payment. The 2023 budget law provides bonuses for those who give up the slide. This is not everyone’s business; It concerns only employees (public or private) who meet the requirements or will reach them by December 31, 2023.

“If the waiver right in question is not exercised, the amounts corresponding to the employee’s contribution that the employer will have to pay to the social security institution are paid directly to the employee along with the salary. “Amounts paid in this way are taxable in terms of tax, but not in terms of contribution,” we read in the INPS circular explaining the incentive mechanism. The bonus is equal to the contribution they are responsible for: 9.19 percent of their salary. It is paid for the remaining years until the retirement age is 67.

But there are clear limits. Contribution exemption and payroll payment will not be valid before April 1, 2023 for private employer employees and before August 1, 2023 for public administration employees.

There are pros and cons to taking advantage of the bonus. The worker will receive a higher salary during the incentive period but retire with a lower check. Because some of the monthly contributions collected in addition to your salary are missing, the check will be slightly lower than the amount you should have received because you worked longer.

Everything remains unchanged for the employer: he will need to continue paying the INPS contribution on his pension base salary.

Excerpt 103, worker’s three options

Therefore, the person who has the “103 quota” qualification must choose what he wants to do. Three options:

  • Leave your job with quota 103;
  • stay at work without using your salary bonus;
  • Work by asking for encouragement.

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Source: Today IT