when it is possible to ask, taxation and amount due

Advance severance pay guide; when it can be requested, what is the taxation and the amount due with an average salary between 1,000 and 1,500 euros.

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The Severance Pay it is a sum of money that the employer sets aside for each worker. The amount is determined on the basis of the annual salary and will be liquidated when the employment relationship ends due to dismissal, resignation or retirement. The law establishes, however, that workers have the right to request an advance of the severance pay during the working life. This request can only be made by respecting some conditions. Let’s find out which ones and then understand what it is the amount due for an employee who receives a monthly salary of between one thousand and 1,500 euros.

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Advance severance pay, when it can be requested

The advance of the severance pay can be requested by the worker on condition that he has accrued at least eight years of seniority with the same employer or company. The timing is defined by the law but some National Labor Contracts may provide for a shorter time frame.

Other requirements for requesting an advance on severance pay are have never applied before, provide documentation relating to the purchase of a first home property or the renovation of the home and justify the medical expenses incurred in public facilities. The conditions make it easy to guess what they are the cases in which it is possible to apply of the advance severance pay. This is thebuying a first home, of its restructuring, of expenses made for interventions or therapies extraordinary and other personal causes.

How to calculate the amount due at the end of the treatment

The advance will never exceed 70% of the amount accrued at the time the worker submits the request. The calculation of the amount due is linked to the annual fee that the employer pays and which is based on the money that the worker receives for carrying out the occupation, on a fixed basis.

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The sum in question must then be divided by 13.5 and revalued at the end of each year with the application of the rate composed of 1.5% in a fixed amount and 75% with reference to the increase in the index of consumer prices reported by Istat. The result will be the share that annually it will be accumulated by the employer and then paid to the worker at the end of the employment relationship. The reference tax is the separate tax linked to the number of years of work carried out, the personal income tax rate and the tax base.

How much advance severance pay can they ask for?

Explained the calculation of the severance pay, it is time to understand what it is the amount of the advance which can be requested with a salary between one thousand and 1,500 euros. Let us take the example of a worker who perceives 1,200 euros per month, thirteenth included, with an annual income of 15,600 euros gross and work from 15 years with the same employer.

The calculation involves dividing the 15,600 euros by 13.5, obtaining 1,155.5 euros. This figure must be multiplied by 15 (years of work) with a result of € 17,333.33. We will then proceed with the calculation of the tax base multiplying 17,333.33 by 12 and dividing the result by 15 obtaining 13,866.64 euros. The corresponding reference rate will now have to be applied at 23% for 15 thousand euros of income, obtaining 3,190 euros. By subtracting the € 3,190 obtained from € 17,333.33, the accrued severance pay, ie € 14,143.3, will be known. From this sum it is possible to ask for an advance of 70% to buy a house, renovate it or for health costs or 30% for other personal reasons.

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