Italy: an agreement at Enel on changing performance bonuses into welfare services

On 27 March, management at Italian energy manufacturer and distributor Enel together with the Filctem-Cgil, Flaei-Cisl and Uiltec-Uil unions signed an agreement that allows employees at the company, and who so wish, to transform some of their productivity bonus payment into tax free (as legislated by the 2017 finance law) welfare services.
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The currently pilot agreement relates to 2016 bonuses payable in 2017. 30,000 Enel Italy employees will be able to choose to benefit from company welfare offers (tax-free up to a €3,000 annual ceiling for those earning less than €80,000 gross per annum), either by choosing to assign 50% of the performance bonus to individual services or to pay all of the performance bonus to the sector’s pension fund Fopen. In a bid to make the welfare choice more attractive, the agreement intends for Enel...

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