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Italy Launches Expanded Bonus Giorgetti to Incentivize Delayed Retirement

The scheme shields employer pension contributions from personal income tax to boost net pay for older workers who defer their pension

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Overview

  • The bonus became operational on June 16 under INPS circular n.102 and now applies to employees eligible for both early retirement and Quota 103
  • Participants can increase their take-home pay by up to €6,900 a year by keeping the employer’s 9.19% pension contribution in their salary
  • The incentive is a one-time option that expires upon claiming a direct pension, with an exception for those receiving disability benefits
  • Skipping part of the pension contribution slightly lowers future payouts but delivers immediate tax savings on renounced contributions
  • The government estimates around 7,000 workers may benefit from the measure, helping retain senior employees in the workforce