It’s time for the fourteenth, or almost. The additional monthly payment is received between the months of June and July, according to the provisions of some collective agreements. In technical jargon, the fourteenth month’s salary is an example of “deferred remuneration” which is due to some employees if provided for in the relevant national collective labor agreement. Its amount is not paid every month, but accrues every month of work and is paid in a single solution, according to the deadlines established by the individual collective agreements. The amount is given by the sum of the individual accruals that the employee accrues for each month in which he is employed by the company. The accrual period of the fourteenth salary normally runs from July to June of the following year (except for the periods which do not give entitlement).
And how is it calculated? The amount of the fourteenth salary and the deadline by which it must be recognized are governed by individual collective agreements. However, more favorable conditions are permitted in company contracts. If the collective agreement does not provide for the fourteenth salary, the company can decide to provide it, regulating it in a specific internal agreement. The amount of the fourteenth month’s salary is normally equal to the salary expected for the month of payment. For example, if the payment takes place by June 30th of each year, the fourteenth will be equal to the June salary.
Absences for those still in the world of work
Be careful, though. The calculation takes into account the months in which the employee was employed by the company, with the exception of those absences which do not allow the accrual of the fourteenth salary, such as: unpaid absences; unjustified absences; suspension from work and pay; unpaid leave; parental leave; the redundancy fund paid directly by INPS to the employee; strike. For those who are still in the world of work, therefore, pay attention to absences, which risk not allowing the extra amount to accrue. The payment depends on the collective agreement: for example, the fourteenth in the trade contract must be paid by employers by 1 July of each year and accrues in the previous twelve months.
The fourteenth to pensioners
What about pensioners? In this case the fourteenth is an additional sum to the pension paid by the INPS in July or December of each year. It is payable if the beneficiaries are at least 64 years old and are entitled to one or more pensions paid by the compulsory general insurance and the substitute, exclusive and exempt forms of the same, managed by public compulsory social security bodies. Pensioners are entitled to the fourteenth salary even if they have a total income of up to twice the minimum annual payment from the employee fund (since 2017). Based on the safeguard clause, in the event that the total individual annual income is greater than 1.5 times or twice the minimum payment – and less than this limit increased by the additional sum due -, the amount of the fourteenth is paid up to up to the increased limit.
The payment is made automatically for pensioners of all managements, based on income from previous years. For those who complete the requirements by July 31st of the reference year, the benefit is paid on the monthly instalment. For those who complete the requirements prescribed from 1 August or from 1 July to 31 December, and to those who became pension holders during 2023, within the age and income limits envisaged, the fourteenth will instead be automatically attributed with the installment of the month of December.
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