There are different kinds of unemployment benefit in Italy.
- Ordinary benefit. In order to qualify for ordinary benefit you must have worked for at least a year and contributed for at least the previous two years. This benefit is only available for six month and is paid from the eighth day after termination of work if the application is made within the first seven days. Benefit is calculated at 30 per cent of your average earnings during the previous three months.
- Reduced benefit. You can qualify for the benefit if you have worked for at least 78 days in the previous year but less than a year in total or have made voluntary contributions. Benefit is calculated at 30 per cent of your average net earnings during the previous three months. The entire amount of paid sum cannot exceed 932 euros.
- Special allowance. This benefit is awarded to employees who have been made redundant in the agriculture and construction industries and is maximum amount of around 20 euros per day. Contributions made in other EU member states are taken into account when making an application for benefit.
Apart from unemployment benefits, Italy has a state fund for employees in industry whose companies put them on temporary redundancy through no fault of their own. It is called ‘Cassa Integrazione Guadagni’ (CIG).
There are two types of CIG.
- Ordinary CIG. It comprises 80 per cent of your salary for hours not worked. This sum cannot exceed monthly minimum, which was 776 euros in 2002.
- Extraordinary CIG. It is designed to cover special situations. For example, when a production line is being reorganized or converted and work must temporary cease. The benefit lasts for 36 months in cases of reorganization or conversion and 12 months in cases of company crisis. Benefit amount is the same as in ordinary CIG.