Ministry of Labour – Interministerial Decree of 7 April 2016 for the experimentation of “subsidized part time” close to the old age pension

Ministero del Lavoro e Ministero delle Finanze - Decreto Interministeriale del 7 aprile 2016 per la sperimentazione del "Part time agevolato" in prossimità della pensione di vecchiaia

The Ministry of Labour - Interministerial Decree of 7 April 2016 for the experimentation of "subsidized part time" close to the old age pension was initiated in 2016 and active until 2018. It focuses on facilitating the transition to part-time work for private-sector employees nearing retirement. It was jointly developed and implemented by the Ministry of Labour and Social Policies and the Ministry of Economy and Finance at the national level. The policy specifically targets private sector employees close to retirement age who have met the minimum contribution requirements for the old-age pension. Key features include the experimental measure which allowed individuals close to retirement (with no more than 3 years remaining before their old-age pension) to opt for a reduction in working hours, ranging from 40% to 60%. Employers compensate employees with a sum equivalent to the pension contributions for the reduced hours, while the state ensures that the employees' pension rights remain intact through figurative contributions. The policy had financial resources capped at specific annual limits, with a maximum limit of €60 million for 2016, €120 million for 2017, and €60 million for 2018.