Single and universal allowance and deductions for dependent children: new benefits from 2022

Prepared by Marzio Scaglioni and Alice Martinis

The Legislative Decree n. 230 of December 21, 2021 (effective from 31 December 2021) established, with effect from 1 March 2022, the single and universal allowance so-called “Assegno unico e universale”, the economic benefit aimed at favoring the birth rate, supporting parenthood and promoting employment, especially female.

The allowance consists of an economic benefit attributed, on a monthly basis, for the period between March of each year and February of the following year and is:

  • unique in that it brings together various measures currently present in the legal system in support of families with children dependent (family allowances, deductions for dependent children and birth-related measures);
  • universal as it is due to all families with dependent children, regardless of their parents’ occupation (also includes self-employed workers, freelancers, unemployed and incapacitated).

As regards the beneficiaries, the allowance is recognized to family units:

  • for each dependent minor child and, for new born, it starts from the 7th month of pregnancy;
  • for each dependent adult child, up to the age of 21, upon meeting certain requirements (attendance at a school or professional training course, or a degree course; or carrying out an internship or work activity and lower income to € 8,000 per year; either unemployed or carrying out the universal civil service);
  • for each dependent child with disabilities, without age limits.

The amount of the allowance is determined on the basis of the economic condition of the family unit, based on the indicator of the equivalent economic situation (ISEE).

For each minor child there is a basic amount of € 175 monthly, which is fully due in the case of ISEE equal to or less than € 15,000; to a lesser extent for higher ISEE levels. The reduction reaches a value of € 50 per month in correspondence with an ISEE of € 40,000, while for ISEE levels above € 40,000 the amount remains constant.

Various surcharges are added to this base for: each child following the second; large families; children with disabilities; mothers under the age of 21; households with two income earners. There is also a temporary increase for the first three years (2022, 2023 and 2024).

As of March 1, 2022, due to an overall reform of welfare family, the following measures will cease to be effective:

  • temporary allowance for minor children and related increases pursuant to art. 79/2021 (also extended for January and February 2022);
  • child birth or adoption premium;
  • birth support fund;
  • allowance for families with at least 3 minor children;
  • family allowance and family allowances, limited to families with children and orphans.

However, the rules in force relating to the nursery bonus remain unchanged.

Decree 230/2021 also makes important changes to the deductions for dependent children. In particular, the same:

  • are recognized according to the current rules for the months of January and February 2022;
  • from March 2022, they apply exclusively to children aged 21 or over.

Applications for a single and universal allowance can be submitted to INPS, according to the procedures indicated by the Institute with Message n. 4748 of December 31, 2021. We also remind you that the payment will be made by bank transfer to the parents’ current account.

In light of the changes made, from March 2022 the allowances for the family unit and family allowances, nor the deductions for dependent children under 21 years will no longer be paid in the pay slip.

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For a deeper discussion please contact:

Marzio Scaglioni

PwC TLS Avvocati e Commercialisti