Delaying Retirement Leads to Financial Reward
Revamped Rewrite:
Until yesterday, folks knew it as the "Maroni Bonus," a name derived from the Labor Minister who first proposed it; now, INPS has christened it the "Giorgetti Bonus," aligning with the League's territory, as the current Minister of Economy revived and broadened the incentive that significantly bumps up the net salary for all workers – public and private – who decide to stick with their jobs, even though they meet the criteria for early retirement. INPS President Gabriele Fava opines, "The continued presence of older workers in the labor market should no longer be viewed as a hindrance to youth employment." Eurostat statistics reveal that in numerous countries with high employment rates among older workers, youth employment rates also tend to be elevated. A shift in perspective is needed, one that supports the interaction of various generations, a goal that can be achieved through flexibility strategies.
The Directive
INPS Circular No. 102 of June 16, 2025 outlines all the instructions to access this bonus, which, as Fava clarified, will commence immediately.
Who it Impacts
The new bonus isn't limited to dependent workers who qualify for flexible early retirement (Quota 103) this year, as it was in the past. Instead, thanks to the expansion of the target group authorized by the Budget Law, it also encompasses employees who fulfill the requirements to receive early retirement (at least 42 years and 10 months of contributions for men, 41 years and 10 months for women).
Pros & Cons
As a result of this measure, the employer-paid employee contribution rate (9.19% in the private sector) that usually goes to INPS skips the paycheck as a tax-exempt income for dependent work. Although this exemption "impacts the individual's contribution reserve," which is calculated by applying the contribution rate to the taxable income during the incentive period, it effectively means a drop in the pension at retirement**.
Timeframes to Remember
INPS reminds us that the pension with Quota 103 becomes effective seven months after the requirements are met for private sector dependent workers (i.e., from August) and nine months after for public administration dependent workers (i.e., from October). Early retirement, on the other hand, takes effect three months after the contribution requirement of 42 years and 10 months for men and 41 years and 10 months for women is met.
The Opt-Out Option
The right to opt out of contributing to individual pensions can only be exercised once during one’s working life and can't be utilized post granting a direct pension, with an exception; when the ordinary disability allowance is granted or after the age requirement for the old-age pension is met. This condition expires the incentive.
How to Take Advantage
Any worker aiming to defer retirement must inform INPS, who will assess the incentive criteria. Specifically, the Institute checks if the employee has met the minimum pension requirements for flexible early retirement treatment or early retirement, and, within a month of the application submission or the date of acquiring any additional required documentation, communicates the decision to the worker and the employer via the "Bilateral Communication" service.
When the Company Acts
Only upon receiving communication from INPS about the employee, the employer may proceed with their responsibilities; namely, to stop the contribution payment for the employee's share and to recover, through offsetting, any previously paid pension contributions.
When the Bonus Ends
The bonus ceases if it's rescinded or when a direct pension – such as the old-age allowance – is granted, excluding the disability allowance.
The expanded eligibility for the Giorgetti Bonus, as outlined in INPS Circular No. 102 of June 16, 2025, not only includes workers who qualify for flexible early retirement but also employees who meet the criteria for early retirement. The employer-paid employee contribution rate, which typically funds personal-finance matters through INPS, will be exempted as a tax-exempt income for dependent work, resulting in an average decrease in personal-finance contributions for eligible employees.
