Contribution peace Inps: possibility to redeem up to 5 years of contributions

"The Budget Law, in force since 1 January, has reintroduced for the two-year period 2024/2025 the institution of the Contribution Pace, implemented by the Inps with Circular No. 69 of 2024, aimed at 'pure contributors', i.e. those who have no contributions prior to 1 January 1996. This measure offers workers the possibility of adding up to five years to their contribution career through the redemption of periods not covered by contributions'. This was announced by the Inps in a note underlining that it is "a particularly useful measure for those who wish to increase the number of years of contribution, taking into account the possibility of adding a further 5 years for those who have already benefited from the experimental measure active in the three-year period 2019/2021".

The measure in force,' it is explained, 'is aimed at all taxpayers registered with the General Compulsory Insurance (Ago), its substitutive and exclusive forms, and the special management schemes for self-employed workers, traders and artisans, as well as those registered with the Separate Management Fund. It is essential, however, that the periods to be redeemed are not already covered by contributions not only in the specific fund, but also in other social security funds.

The period not covered by contributions may be redeemed up to a maximum of 5 years, even if not continuous, and must be after 31 December 1995 and before 1 January 2024, the date on which the Budget Law comes into force. It is important to note that only periods uncovered by compulsory contributions that are between two periods of work can be redeemed. It is therefore not possible to use contribution peace for periods prior to first employment. The advantage is that the redeemed periods, which may also be non-continuous but in any case not exceeding five years, are taken into account both for the purposes of acquiring the right to a pension and for calculating the pension allowance.

It should also be noted that if insurance seniority is acquired prior to 1 January 1996 (e.g. credited military service, maternity outside the employment relationship, etc.), the redemption already made through the Contribution Peace will be cancelled ex officio, with subsequent return of contributions. The option to make use of contribution peace can be exercised 'at the request' of the insured person, or his survivors or relatives and relatives-in-law within the second degree, by 31 December 2025. In the case of private sector workers, the application for contribution peace may also be submitted by the employer. In this case, the charge is deductible from business and self-employment income.

Compared to the contribution peace measure in force in the 2019-2021 biennium, the significant difference is that for the 2024 measure, the 50 per cent deduction of the expenditure incurred will not be possible. Therefore, for redemption applications submitted from 1 January 2024 to 31 December 2025, the contribution paid is tax deductible from the total income.