Monthly advance of tfr in payroll
With Note No. 616 dated April 3, 2025, the National Labour Inspectorate (INL) issued its opinion—upon request by the Metropolitan Inspectorate of Milan—on the legitimacy of including a monthly advance of the severance indemnity (TFR) in the payslip. Specifically, the INL clarified whether this practice, carried out beyond the June 30, 2018 deadline set by Law No. 190/2014, is permissible only under the specific conditions provided for by Article 2120 of the Civil Code. It also addressed whether advances outside such legal parameters are unlawful and what potential consequences may arise during inspections.
The Inspectorate recalled that Article 2120 of the Civil Code defers to collective agreements or individual arrangements for the inclusion of more favourable conditions concerning advance requests. In the absence of such agreements, the Italian Supreme Court has ruled that any advance payment must be considered an additional wage component and thus subject to social contribution obligations.
Therefore, it is considered lawful for a collective or individual agreement to allow an advance on the accrued TFR amount at the time of the agreement. However, a systematic monthly inclusion of the TFR amount in the payroll would be reclassified as additional salary, triggering full contributory obligations.
From an inspection standpoint, where such irregular practices are detected, inspectors are required to issue a formal order to the employer, demanding the reallocation of the unlawfully advanced TFR amounts back into proper reserves.
Lower inps/inail instalment rates
Following the European Central Bank’s monetary policy decision of April 17, 2025, the interest rate for main refinancing operations (formerly TUR) has been reduced by 25 basis points to 2.40%, effective from April 23, 2025.
As a result, INPS and INAIL—through Circulars No. 80/2025 and No. 27/2025 respectively—have updated the applicable interest rates for deferred payments and related sanctions on social security contributions and insurance premiums.
INPS
- The interest rate for instalment payments of contribution debts and civil penalties is now set at 8.40% annually for plans filed from April 23, 2025. Existing plans remain unaffected.
- The same annual rate (8.40%) applies to authorised deferrals of contribution payments.
- Civil penalties are structured as follows:
- 7.90% annually for delayed or omitted payments (Art. 116, para. 8, letter a), Law 388/2000), based on the base rate (2.40%) plus 5.5 percentage points.
- If payment is made within 120 days from the deadline, voluntarily and in one lump sum before any formal action, the rate is reduced to 2.40%.
- In cases of evasion (Art. 116, para. 8, letter b)), the civil penalty is 30% per year, capped at 60% of unpaid amounts.
- If voluntarily reported within 12 months, penalties for evasion revert to 7.90%, provided payment is made in full within 30 days.
- If payment is made within 90 days, the rate rises to 9.90% annually.
- For cases under Art. 116, para. 10, Law 388/2000, only legal interest applies (Art. 1284 of the Civil Code).
- In insolvency proceedings, civil penalties are reduced using the 2.40% ECB base rate.
INAIL
- Instalment payments for insurance premiums and related charges, for applications submitted after April 23, 2025, are also subject to the 8.40% annual interest rate.
- For non-payment or delayed payment of declared contributions:
- A civil penalty of 7.90% annually applies from April 23, 2025.
- If payment is made within 120 days, in one solution and voluntarily, the penalty is reduced to 2.40%.
- In cases of evasion tied to omitted or false reporting, if voluntarily disclosed within 12 months and paid within 30 days, the penalty is 7.90%, or 9.90% if paid within 90 days.
- In insolvency proceedings, the reduced civil penalties apply at 2.40% for omitted payment, and 4.40% for evasion.
Extension of mandatory catastrophic risk insurance
We inform our clients that, following the publication of Decree Law No. 39/2025 in the Official Gazette on March 31, 2025 (No. 75), the timeline for the mandatory activation of insurance coverage for natural disasters and catastrophic events—initially set for March 31, 2025 by Law 213/2023 (Art. 1, para. 101)—has been revised.
The new deadlines are as follows:
- October 1, 2025 for companies with up to 250 employees and annual turnover below €50 million.
- December 31, 2025 for companies with up to 10 employees and turnover below €2 million.
It is important to note that, under Article 1, para. 102, Law 213/2023, businesses failing to comply with the insurance requirement within 90 days of the relevant deadline will be excluded from access to public contributions, grants, or incentives.
