The stability law of 2016 introduced the possibility, depending on the worker’s choice, to convert the performance bonus into welfare. It also extended the scope of the services that can be inserted into the contracts and the company regulations.
The subsequent budget laws extended the perimeter of corporate welfare.
At article 51, this law governs which income does not constitute income from subordinate employment. The company can therefore pay this income to the employees without contribution and tax burdens.
The circulars, resolutions and appeals of the Inland Revenue Agency interpret and define legal aspects of budget and stability laws and the rules present in the Consolidated Law on Income Tax.
Corporate welfare is the most efficient form of transferring resources between the company and its people. For the worker, welfare does not contribute to income generation and for companies having a welfare plan offers significant tax advantages.
Where provided by the CCNL, the provision of welfare initiatives is mandatory. In this case the value of the services to be provided is also indicated.
Some national collective labour agreements introduce obligatory measures of corporate welfare. Among the active collective employment contracts, we find goldsmiths and jewellers, telecommunications, metalworkers.
Welfare on top is provided voluntarily by the company according to specific company regulations. It may be allocated to the general body of workers, or replace forms of rewards.
In the presence of specific second level business agreements, the performance bonuses can benefit from preferential taxation and be converted into welfare goods and services.