Anyone who pays social security contributions in Italy acquires a pension. For permanent employees, the pension contribution comes to around 33% of gross wages; more than two-thirds comes from the employer while the remainder is deducted from the salary of the employee. Self-employed persons must sign up for a pension fund and pay their contributions in proportion to their annual income.
The National Social Insurance Institute (Istituto Nazionale della Previdenza Sociale) or INPS counts insurance years in other countries of the European Union just as other EU Member States count Italian insurance years. The pension itself will then be paid as a partial by each country, according to its provisions, each in relation to the amount of insurance actually paid in the country during the years of insurance contributions.
In Italy, a distinction is made between two different forms of retirement benefits. The pensione di anzianità is paid, regardless of age, after a certain number of years of contributions. The pensione di vecchiaia, on the other hand, uses age as a benchmark: In the public sector, women and men alike can retire at the age of 65. In the private sector, in the year 2017 the retirement age is currently 66 years and seven months for men and 65 years and seven months for women. In the year 2018 the retirement age is 66 and seven months for both men and women. Recent pension reforms have provided for a more flexible retirement age in the future: up to age 70. Beginning in 2022, women and men alike may work to age 67. The annuity rate depends on the contributions paid. At least 20 insurance years are needed to get the pension.