Understanding INPS in Italy: A Guide for Expats in Italy (2024)

Understanding INPS in Italy: A Guide for Expats

In Italy, the National Institute of Social Security (INPS) plays a crucial role in the country’s public pension system, encompassing various benefits essential for residents and expatriates alike. Here’s everything you need to know about INPS, tailored for expats living and working in Italy.

What is INPS?

The National Institute of Social Security (INPS) serves as Italy’s primary social security institution, responsible for administering public pensions, disability benefits, unemployment benefits, and paid sick leave. It is mandatory for most public or private employees and self-employed individuals without their own autonomous pension fund to be enrolled in INPS.

Who Does INPS Apply To?

If you’re an expat working in Italy, you have the same rights and obligations regarding social security as Italian workers. Your employer is responsible for registering you with INPS and deducting contributions from your salary each month. Contributions vary by industry, and you can monitor your contributions and benefits through the INPS website using your personal identification number.

If you’re only in Italy temporarily and not planning to retire there, you can integrate your INPS contributions with those from other EU state pensions.

Self-Employed in Italy

Self-employed workers in Italy, except for certain professions like lawyers and accountants who have alternative pension schemes, must register with and contribute to INPS. It’s essential to seek guidance, especially if you’re a low-earning self-employed individual, to understand the implications and obligations under INPS.

Contributions for self-employed individuals are made quarterly using the F24 form, with most banks offering online payment options. The contribution amount is based on estimated income from the previous year, particularly crucial for those starting out in self-employment.

Benefits Provided by INPS

INPS offers various benefits, including:

• Sickness Benefits: If you’re unable to work due to illness for 4 to 180 days, you can receive up to 2/3 of your daily wage after the first step of visiting a doctor.

• Maternity Leave: INPS covers maternity leave for mothers and, in specific cases, for fathers as well.

Interaction with Other EU State Pensions

For expats retiring in Italy from another EU state, the process involves applying for your pension either in Italy or the country where you last worked. Each EU country’s social security system calculates the part of your pension it is responsible for based on your contributions. INPS considers all contribution periods across EU countries to calculate your pension, adjusting the theoretical amount according to the actual time covered in each country.

Seeking Financial Planning Assistance

Whether you’re working, self-employed, or planning for retirement in Italy, navigating INPS and integrating it with your financial plans requires careful consideration. For personalized financial advice tailored to expats in Italy, contact us via the form below. Our independent financial advisors specialize in helping expats optimize their financial strategies and navigate the complexities of international pensions.

Understanding and managing your INPS contributions and benefits is crucial for ensuring financial security during your time in Italy and beyond. Stay informed and proactive to make the most of your social security entitlements as an expat in Italy