On December 31, 2021, Legislative Decree No. 230 of December 21, 2021 (L.D. No. 230) entered into effect in Italy, with the purpose of establishing the Single and Universal Allowance for Dependent Children effective March 1, 2022. The allowance consists of a monthly economic benefit payable during one year to households on the basis of their economic condition as determined by the Equivalent Economic Situation Indicator (Indicatore della Situazione Economica Equivalente, ISEE) referred to in Decree No. 159 of the President of the Council of Ministers of December 5, 2013. (L.D. No. 230, art. 1(1).)
Beneficiaries
Under the new legislation, each dependent minor child and newly born child (from the seventh month of the mother’s pregnancy) is eligible for the allowance benefit. In the case of dependent adult children, the benefit accrues up to the age of 21 as long as the child is enrolled in a school or professional training course, or in an internship or work activity with a total income of less than 8,000 euros (about US$8,945) per year; is registered as an unemployed job seeker with the public employment services; or is enrolled in the universal civil service. There are no age limits for disabled dependent children. (L.D. No. 230, art. 2(1).)
Allowance Amounts
The amounts of the allowance, which are reduced on the basis of the parents’ income, as defined by the ISEE, are as follows:
- Up to 175 euros (about US$199) for a dependent child.
- Up to 85 euros (about US$95) for adult children up to 21 years of age.
- 85 euros per month for each child following the second.
- 105 euros (about US$119) per month in the event of non-self-sufficiency, reduced to 95 euros (about US$108) for each child with a severe disability, or 85 euros for each child with a minor disability.
- 50 euros (about US$57) per month for each child under 21 with disabilities.
- 85 euros per month for each child age 21 or over with disabilities.
- 20 euros (about US$23) per month for each minor child when the mother is under the age of 21.
- 30 euros (about US$34) per month for each minor child if both parents have earned income.
- 100 euros (about US$114) per month for a family with four or more children.
Requirements for Applicants
Applicants must comply with certain requirements, which include holding Italian or European citizenship or residence, being subject to paying income tax in Italy, being domiciled in Italy or having previous residence in Italy for at least two years, or holding an open-ended or fixed-term employment contract lasting at least six months. (L.D. No. 230, art. 3(1)(a)–(d).) Applicants for the allowance may submit their applications electronically to the National Institute of Social Security (L’Istituto Nazionale della Previdenza Sociale, INPS). (L.D. No. 230, art. 6(1).)
Increased Allowances for Working Parents with Low Incomes
In addition, the new legislation increases the allowance in order to support dependent children under certain conditions. (L.D. No. 230, art. 5(2)(a)–(b).) The legislation defines “family member” to include families that include both parents, even if separated, divorced, or not living together, and families composed of only one of the parents. (L.D. No. 230, art. 5(3)(a)–(b).)
National Observatory for the Single and Universal Allowance
The decree creates the National Observatory for the Single and Universal Allowance for Dependent Children (the observatory) at the Department for Family Policies, under the Presidency of the Council of Ministers, to analyze, monitor, and evaluate the impact of the allowances created by L.D. No. 230. (L.D. No. 230, art. 9(1).) The observatory must coordinate its functions with both the National Observatory on the Family and the National Observatory for Childhood and Adolescence. (L.D. No. 230, art. 9(3)(a)–(b).)
Finally, the new legislation appropriates funds for the hiring of personnel in order to implement the Single and Universal Allowance for Dependent Children. (L.D. No. 230, art. 12(1).)