Social Security - Minimum Income Guarantee

Welfare allowance

Welfare allowance is a welfare benefit for Italian citizens who are 65 years of age, reside permanently in Italy and have an income lower than the limits laid down every year by law.

Since 1 January 1996, the welfare allowance has replaced the welfare pension which, however, continues to be granted to those who, having met the requirements, applied for it by 31 December 1995.

The following are treated in the same way as Italian citizens:

• EU Member State citizens
• residents of the Republic of San Marino
• political refugees
• EU citizens
• non-EU citizens with a residence permit

Amount of Benefit

The allowance for 2005 is EUR 374. The allowance is not exportable and is lost if the person concerned is transferred abroad. The allowance is non-negotiable and, therefore, may not be transferred to surviving family members. Under certain circumstances, persons in receipt of the welfare allowance may be entitled to welfare bonuses.

Applications

These should be made to regional INPS offices or charitable institutions (Enti di Patronato).

Minimum Pension Allowance

The Italian State, acting through the INPS, pays a minimum income to the pensioner in the event of his pension, ensuing from the computation of the contributions paid, being very low or below what is considered the "vital minimum". In this case, the amount of the pension is increased ("supplemented") to reach a figure established by law from year to year.

The monthly amount, which for 2005 is equal to EUR 420.02, varies from year to year and, provided the requirements can be determined, may be supplemented by a bonus. The supplement is recognised, provided the pensioner and spouse, if married, received income not exceeding the limits established by law. To obtain the supplement relating to the minimum allowance, certain limits on personal and conjugal income - the amount of which varies from year to year, just as that of the pension varies - must not be exceeded.

The personal income limit for 2005 is EUR 5,460.25. If your income is between EUR 5 460.25 and EUR 10,920.52, you are entitled to receive reduced benefit; no benefit is payable if your income exceeds EUR 10,920.52.

The joint personal income limit with a spouse for 2005 is EUR 16 380.78; between EUR 16 380.78 and EUR 21 841.03 you are entitled to reduced benefit; no benefit is payable if your income exceeds EUR 21 841.03.

For married persons the benefit to bring income up to the minimum cannot be granted if personal income exceeds the limit laid down under the law, even if the joint income is less. Similarly, the benefit cannot be granted if personal income is less than the legal limit but the joint income exceeds it.

Social supplement (the so-called "aumento al milione")

With effect from 1 January 2002, the budget established an increase in the welfare bonus, in favour of distressed persons, to provide a pension amount of up to EUR 516.46 per month, in 13 monthly payments.

The supplement is payable to: 

• recipients of pensions through the obligatory social insurance scheme for employees and self-employed workers (artisans, businessmen, tenant farmers, sharecroppers and smallholders)
• recipients of pensions through the special scheme for mineworkers, quarry workers and peat-bog workers
• recipients of pensions through schemes exclusive of and replacing the obligatory social insurance scheme (airline pension fund, telephone company pension fund, etc.)
• recipients of the state pension
• recipients of the social allowance
• recipients of social welfare benefits (disabled persons, deaf-mutes and blind persons)

To obtain this increase, pension-holders must be at least 70 years of age, which may be reduced to 65 years, at the rate of one year for every five years of contributions. A reduction of one year may also be obtained, if a period of contributions is possessed of not less than two-and-a-half years. The bonus is granted if the pensioner does not exceed certain income limits.

For 2005, single persons must have a personal income of less than EUR 7,069.27 per annum. If the pension recipient is married, their personal income is added to their spouse's income. The total amount for 2005 must in all cases be less than EUR 11,943.88.

Source: European Union
© European Communities, 1995-2006
Reproduction is authorised.