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Article | Global News Briefs

Italy: New benefit-related provisions for executives in commerce

By Beatrice Elena Stroppa and Andrea Scaffidi | July 30, 2021

An agreement between companies and executives in the commercial sector changes benefit allocations and increases cost of employee termination.
Retirement|Health and Benefits|Ukupne nagrade

Employer Action Code: Act

Ahead of the expected renegotiation and renewal in 2022 of the national collective bargaining agreement (CBA) for dirigenti (executives) in the commercial sector, Manageritalia (the national federation of executives in the commercial sector) and Confcommercio (the largest confederation of companies in Italy) have signed an agreement with provisions affecting benefits. As background, the national CBA for executives in commerce covers 8,000 companies and 24,000 executives, and provides for supplementary benefits through the Antonio Pastore insurance fund, the Mario Negri pension fund and the FASDAC health care fund.

Key details

Details of the June 16, 2021 agreement concerning executives in the commercial sector include:

  • Additional cost in case of dismissal: From July 1, 2021, employers must pay 2,500 euros to the CFMT (Training Center for Executives) in the event of executive employee’s termination (apart from termination for just cause, disciplinary dismissal, voluntary resignation or consensual termination). The funds are to be used to support outplacement and re-employment of executives.
  • Reallocation of employer contributions: From October 1, 2021, the annual employer contribution to the Antonio Pastore insurance fund will decrease from €4,803.05 to €4,296.45 per executive. Part of the difference (€300) will be redirected to the Mario Negri pension fund, with the remainder (€206.60) redirected to the FASDAC health care fund to manage long-term care benefits currently covered by the Antonio Pastore fund. The €300 higher pension contribution will be nontaxable for the employee (unlike the current contribution to the Antonio Pastore fund).
  • Introduction of a flexible benefits platform: The CFMT will study and subsequently manage a customized flexible benefits platform to provide welfare services to executives and their families. Though the new agreement does not include an obligation for employers to grant flexible benefits via the platform, this may become mandatory as part of the national CBA negotiations expected next year. An interesting feature of the platform will be its integration with the CBA supplementary benefit funds. For example, it should be possible to increase the employee contribution to the Mario Negri pension fund, to purchase a supplementary medical plan from the FASDAC health care fund, or to attend master's degree and training courses in addition to the ones offered by the CFMT. The platform should also be able to host any flexible benefits plans already established by the employer. Further details on the new platform are expected in late 2021.
  • Collective accidental death and disability (AD&D) coverage: The Antonio Pastore insurance fund will propose (by November 2021) the establishment of collective AD&D coverage. While the current AD&D arrangements are managed individually by each employer, the collective program may allow for company savings.

Employer implications

At this stage, employers should ensure that their contributions to the CBA supplementary benefit funds (Antonio Pastore, Mario Negri and FASDAC) will be split in accordance with the new allocation, and that they comply with the additional cost in the event of an executive’s termination.


Beatrice Elena Stroppa

Andrea Scaffidi

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