New rules for early retirement in Italy

19th October 2017

New rules for early retirement in Italy

New measures have been introduced with respect to early retirement, bringing into effect the Budget Law for 2017 as it applies to different categories of employees, via the so called “Pensione precoci”, “APE sociale” and “APE volontaria”.

The APE sociale is a welfare indemnity paid by the State and provided by the Social Security Authority (INPS). A maximum amount of 1,500 Euros per month can be claimed by those employees who have reached at least 63 years of age, with 30 years of paid social security contributions, and who fall within one of the following categories:

a) unemployed employees who have exhausted their right to unemployment benefit at least 3 months previously
b) employees who are severely disabled
c) employees who have been caring for a spouse or close relative with severe handicap for at least six months
d) employees who have been performing a working activity that is considered to be hard for at least 6 years

The Pensioni Precoci is a measure that allows the early retirement of employees with 41 years’ paid social security contributions without any penalties and regardless of age, bringing forwards the current statutory age requirements by ten months for men, and one year and ten months for women. This early retirement can only be requested by employees who have worked for at least 12 months prior to reaching 19 years of age, even on a non-continuous basis, and who fall within one of the categories already listed above with reference to the APE Sociale.

Lastly, the APE volontaria is a loan, paid by a bank in monthly instalments to early retirees and which bridges the period of time until state retirement requirements are met. The loan can be requested by those employees who are enrolled in the compulsory general insurance. Access to APE volontaria requires a claimant to:

a) have made 20 years’ paid social security contributions
b) be at least 63 years of age
c) be reaching old age retirement requirements in 3 years and 7 months
d) be entitled to a pension equal to at least 1.4 times the minimum

The loan must be paid back in monthly instalments for 20 years, starting from the time the employee reaches statutory retirement age.


For more information please contact Marcello Floris.

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