“Contributing peace” is back. The budget law, which received the green light in the Senate today, includes a provision that allows the use of non-working periods of up to five years for retirement purposes, which is currently in effect between 2019-2021. . The measure, which has been implemented on an experimental basis for the two-year period between 2024-25, targets workers who fall into the pure contribution system (that is, started paying in 1996), while those who fall into the mixed and salary system are excluded from the scope. .
While it would be possible to cover periods during which the worker does not accrue contributions (e.g. due to leaves or interruptions between one job and another), with the contribution peace, a temporary measure would already be available for the repayment of the degree. this may also be compatible with the new precaution added to the manoeuvre.
How does measurement work?
‘Non-working’ periods should not currently fall within the scope of conceptual contributions (e.g. in cases of maternity or unemployment), should be between 1 January 1996 and 31 December 2023, and should not necessarily be continuous. Thanks to the repayment of “missing” premium periods, it will be possible to increase the premium years (and therefore retire earlier) and at the same time increase your social security payment. The bad news, although obvious, is that you will have to pay.
How much does contributing peace cost?
How much? When calculating the cost, it is necessary to take into account the reference rates in force in the social security administration in which the reimbursement operates.
- Employees: 33%
- Self-employed: 24%
- INPS Separate Management: 25.72%
Essentially, it is sufficient to apply the rates to the average taxable income of the 12 months before the request. The result should then be multiplied by the years you want to use it. However, this amount can be paid in 120 interest-free monthly installments and the payment entitles you to a 50% tax deduction; This discount can be amortized in installments of the same amount over 5 years. However, the law stipulates that installments will not be foreseen “in case the contributions obtained from the refund are used for the immediate payment of the pension.”
It is always advisable to first contact an expert in INPS or the social security sector to assess the costs and benefits of repayment.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
