The draft of the 2021 Budget Law provided for an extension of the expansion contract to companies with at least 250 employees. The passage of the limit from 500 employees to 250 employees increases the number of beneficiaries who can access the expansion contract. Let’s analyze how to retire 5 years earlier in 2021 with 20 years of contributions.
Expansion contract
The expansion contract was introduced from Law Decree n. 34/2019. In fact, it is an agreement to be signed in the government that allows you to anticipate your retirement 5 years earlier. At the same time, the joining company will have to proceed with a recruitment and training plan for the employed workers. This tool was initially aimed at large companies.
Therefore, workers who are no more than five years (60 months) from retirement age will be able to join this type of early retirement. However, it is required that workers have accrued the minimum contribution requirement of 20 years or the requirement of early retirement.
How to retire 5 years earlier in 2021 with 20 years of contributions
On the basis of the hypotheses presented to the Chamber, companies with 250 employees also have the option of using the “slide” to the expansion contract. On the other hand, companies with 500 employees and up, in addition to the slide of 5 years from the retirement date, also provide for the NASPI allowance up to two years.
The innovations also concern companies with more than a thousand employees, which activate corporate restructuring and reorganization plans.
In fact, employers have to hire one worker for every three outgoing workers, in exchange they benefit from a NASPI with twelve months more, bringing compensated unemployment to three years.
The company has to bear significant costs to implement the isopension or expansion contract. There is a difference between isopension and the expansion contract.
The former is entirely borne by the employer, while state aid is also provided for in the expansion contract, with the addition of the NASPI indemnity.
Furthermore, if workers access training plans, the state provides the company with a social safety net for up to 18 months. Compared to the isopension, this entails economic savings ranging from 25 to 43% for companies, as well as a generational turnover of jobs.
When asked how to retire 5 years earlier in 2021 with 20 years of contributions? If the measure is approved in the 2021 Budget Law, with the above measures it will be possible on the basis of agreements signed by the government.
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