DLP Insights

PRODUCTIVITY: THE CONTRIBUTIVE REDUCTION

Categories: DLP Insights, Legislation

09 Dec 2011
The Minister of Labor, Elsa Fornero, signed the decree which allows the contributive reduction applicable to the part of variable salary paid in 2011 on the basis of second-level collective bargaining. The contributive reduction amount has been provided in 2.25% of the salary due on the basis of the National Collective Agreement and it will be applicable only on the payment provided for by company collective agreements and territorial ones (i.e. second-level collective bargaining), and by so-called “contratti di prossimità”. These amounts could be interested by this benefit, however, only if they have been paid as consideration of increases in productivity, quality, profitability, innovation and organizational efficiency, relevant for the improvement of company competitiveness and provided that the collective agreements – both company and territorial ones – are signed by employers and registered at the Provincial Department of the Ministry of Labor within thirty days from the date of coming into force of the decree. The latter, however, did not establish the limits and the conditions for the application of the contributive reduction.

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