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Consolidation of contributions without amnesty

Consolidation of contributions, new benefits in sight

How to apply for consolidation of periods not covered by contributions: no amnesty on omitted payments, benefits for employers.

Consolidation of contributions, new benefits in sight

Consolidation of contributions, new benefits in sight

Contribution peace – which allows you to redeem up to five years of contributions – is in no way a possible rectification for omitted payments but serves only to cover any periods uncovered by contribution.

As it specifies:

It is a faculty that allows for the consolidation, on an experimental basis for the three-year period 2019-2021 and up to a maximum of five years, of periods not subject to social security contributions and not already covered by contributions, however paid and credited, to forms of compulsory social security.

These are clarifications also contained in the demand models (form AP135) for the consolidation of contributions, an option introduced – on a trial basis until December 31st 2021 – by the pension reform provision (article 20 of Decree Law 4/2019) and reserved for the so-called pure contributions (workers who do not have social security contributions paid before 31 December 1995).

Any acquisition of insurance seniority prior to January 1, 1996 determines the cancellation of the consolidation already made, with repayment of the burden to the party who paid it without recognition of interest increases.

Beneficiaries

The right of consolidation can be exercised by those enrolled in the Compulsory General Insurance for the invalidity, old age and survivors of employees and the substitute and exclusive forms of the same, as well as the special management of the self-employed, and the separate management referred to in Article 2, paragraph 26, law 8 August 1995, n. 335, without seniority contributions as of December 31, 1995 and not already pensioners.

Additional requirement: the beneficiary must not already be the holder of a direct pension, in any mandatory pension management.

The redeemable periods

· Are included between the date of first enrollment in social security (subsequent to 31 December 1995) and the last contribution paid,

· Must be periods not covered by contributions (for example, due to a period of unemployment),

· The worker can decide which periods to redeem, up to a maximum of five years even if not continuous,

· Periods for which contributions due have not been paid cannot be redeemed.

The periods subsequent to December 31, 1995 and prior to January 29, 2019 may be redeemed in whole or in part up to a maximum of five years, even if these are not continuous.

How to apply

The application can be presented up to December 31, 2021 by the person concerned, by his survivor or, within the second degree, by his relative and similar (subject to obtaining the consent of the person concerned).

In all these hypotheses, the charge paid is deductible from the gross tax in the amount of 50%, with a breakdown into five constant annual installments of equal amount in the year of sustaining and in subsequent years.

The application is presented online through the dedicated service, patronages and intermediaries, through its own telematic services.

Special cases

For private sector workers, the consolidation can also be exercised by the employer, paying him with the production bonuses due to the worker himself. In this case, the charge is deductible from business income and from self-employment.

In the case of submission of the application by the employer, relatives and similar within the second degree, pending the implementation of the procedure for electronic transmission, the applications are presented using the online form.

Payment

The consolidation charge can be paid in a single installment or in a maximum of 60 monthly installments, for an amount not less than 30 euros, without interest for the payment in installments.

The installment payment of the charge cannot be granted in cases where the consolidation contributions must be used for the immediate payment of a direct or indirect pension or in the event that they are decisive for the acceptance of an application for authorization to make payments volunteers; if this occurs during the extension already granted, the sum still due must be paid in a lump sum.

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