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EMPLOYMENT

Here’s how to apply for Italy’s 600-euro emergency bonus payment

What you need to know if you've applied, or are planning to apply for, Italy's 600-euro payment for the self-employed.

Here's how to apply for Italy's 600-euro emergency bonus payment
A sign on the door of a shop in Lombardy announces it has closed due to the government shutdown. Photo: AFP

With many busnesses closed and people out of work due to the nationwide quarantine measures in Italy, the government announced financial relief measures, as part of its “Cura Italia” decree signed in March, including the one-off payment payment available to self-employed workers.

Freelancers and other self-employed workers, as well as seasonal workers, can apply for the 600-euro payment to help with the cost of living.

READ ALSO: The financial help available for those hit by Italy's lockdown

This payment is intended to help to cover lost earnings in the month of March, and can be accessed by self-employed workers with a partiva IVA (VAT number), who can prove they've lost some or all of their income due to the shutdown.

What are the requirements?

The application must be made via the INPS (Italian social security office) website here. Individuals can apply after 4pm or on weekends. Before 4pm, the site is reserved for business applications, a measure intended to help INPS manage the large number of applications.

While the decree stated that applicants must show tax records from 2018, the Italian Labour Ministry clarified on April 21st that those who registered in 2019 or even 2020 can also apply.

Applications are open to those who had an active VAT number on or before 23 February 2020.

According to the INPS application guide, applicants must have earned less than €50,000 in the most recent tax period and ether:
 
– closed their partita IVA between February 23rd and March 31st 2020.
 
– lost at least 33 percent of their income in the first quarter of 2020 (compared to that of the first quarter of 2019.)
 
The payment is not available to anyone who is receiving a pension or the citizens' income unemployment benefit.
 

How soon can the payments be made?

The government says most of the initital payments were made by April 17th. However many applicants have reported delays and other problems with the application process.

The application process is still open in April, and is set to be extended.

The government is widely expected to extend the policy to cover April and May in a forthcoming decree.

At least 300 thousand applications were rejected due to having input incorrect data. However, rejected applications can now be corrected and re-submitted through the INPS website.

 

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MONEY

How much does it cost to raise a child in Italy?

How big is the financial commitment parents have to make in Italy to pay for their offspring’s needs and expenses until they’re grown up and independent? Here's a look at the predicted costs.

How much does it cost to raise a child in Italy?

Family is the bedrock of Italian society, but it’s also an unbalanced economic crutch, propping up children who leave home much later than most of their European counterparts.

Various factors are at play, from a declining birth rate, youth unemployment, being unable to get on the property ladder to young Italians moving abroad in search of better financial opportunities.

It probably comes as little shock, then, that parents in Italy end up forking out huge sums of cash to support their offspring through childhood and early adulthood (and beyond).

Even just up to the age of 18, raising a child in Italy can cost upwards of €320,000, according to data from Italian consumer research body ONF (Osservatorio Nazionale Federconsumatori).

The average spend of raising a child from 0-18 years is €175,642, but it rises in families with high incomes, classed as over €70,000 per year.

READ ALSO: Italian class sizes set to shrink as population falls further

Researchers noted that the cost of bringing up children has jumped up following the effects of the pandemic too: compared to 2018, child-rearing expenses increased by 1.2 percent by 2020.

The decrease in expenditure related to transport due to spending more time at home, as well as those incurred for sports and leisure activities, was not enough to mitigate the increase in costs for housing and utilities, which increased by 12 percent compared to 2018.

Photo by Suzanne Emily O’Connor on Unsplash

Food prices rose by 8 percent compared to 2018 and education and care jumped by 6 percent for the same timeframe.

In fact, Italy ranks as the third most expensive country in the world for raising children, only coming behind South Korea and China, according to data from investment bank JEF.

The pandemic has contributed to extending an already growing phenomenon: the decrease in annual income of Italian households.

Household income dropped by 2.8 percent from 2019 to 2020, the report found, citing data from national statistics agency Istat. It marks a further squeeze for families, especially low-income and single-parent families.

Depending on earnings, the amount needed to bring up a child until the age of 18 varies considerably.

READ ALSO: ‘Kids are adored here’: What being a parent in Italy is really like

A two-parent family with an annual income of €22,500 spends an average of €118,234.15 to bring up a child until the age of 18; for the same type of family but with an average income of €34,000 per year, the total expenditure to bring up a child increases to €175,642.72.

For high-income families, stated as over €70,000 annually, raising a child costs €321,617.36 on average.

The figures mark an increase of around €5,000 for low- and middle-income families, and a much sharper rise of €50,000 for high-income families, compared to ten years ago.

The money gets spent on housing, food, clothing, health, education and ‘other’ categories. The report revealed that the average spend on a child aged 16 years old is almost €11,500 annually, amounting to €955.78 per month.

Almost €2,000 per year gets spent on food, €1,615 goes on transport and communication, €782 goes on clothing and €1,600 goes on education annually, the report found.

They begin small, yet the costs are anything but. (Photo by LOIC VENANCE / AFP)

For the ONF, “these data highlight how, today more than ever, having a child is becoming a luxury reserved for the few, which fewer and fewer Italians are able to afford.”

READ ALSO:

The numbers on supporting children after their 18th birthday are a little hazier, as when children eventually fly the nest varies – but figures from Eurostat show that Italy ranks third in Europe for the average oldest age at which children move out of the parental home, at 30.2 years old.

Only young people from Croatia and Slovakia wait longer to live independently, while the EU average for flying the nest is 26.4 years old.

Even then after eventually leaving home at over 30 years old, it’s not entirely clear how many Italians are fully independent once they get their own address, or whether their parents continue to bankroll their living costs.

Italy’s president Sergio Mattarella sent a message to Italy’s Birth Foundation (Fondazione per la Natalità) in May stating, “The demographic structure of the country suffers from serious imbalances that significantly affect the development of our society.”

In response to worsening economic circumstances, the Italian government has recently pledged to do more to help people have families and reverse Italy’s continuing declining birth rate.

It has introduced the Single Universal Allowance (L’assegno unico e universale), but along with it has dropped various so-called ‘baby bonuses’ that provided lump sums to new parents.

The new allowance is a monthly means-tested benefit for those who have children, or are about to have a child. It is payable from the seventh month of pregnancy until the child reaches the age of 18 or in some cases, 21. For more information on what it is and how to claim it, see here.

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