EMCC European Monitoring Centre on Change

Wage guarantee fund for labour related credits

Phase: Management
  • Response to COVID-19
  • Income support for workers
Senast ändrad: 30 June, 2020
Lokalt namn:

Fondo di garanzia INPS del TFR e dei Crediti di Lavoro

Engelskt namn:

Wage guarantee fund for labour related credits


Employeees whose employers are subject to insolvency or enforcement proceedings.

Main characteristics

'Fondo di Garanzia’, administered by the National Institute of Social Security (Istituto Nazionale della Previdenza Sociale, INPS), pays unpaid remunerations related to the last three months of the employment contract as well as the severance indemnity (the so-called ‘Trattamento di Fine Rapporto’, TFR) to employees, apprentices, industrial firms’ management and members of cooperatives whose companies are unable to pay, since they are declared insolvent or part of an enforcement proceeding.

The conditions to apply for ‘Fondo di Garanzia’ are the termination of the employment relationship, the ascertainment of the worker’s credit by a court, the existence of insolvency or enforcement proceedings against the employer, and the employer’s state of insolvency. As for the last three wages, the maximum amount paid is equal to three times the amount of the ‘Cassa Integrazioni Guadagni’ (CIG) treatment, net of social security contributions. Interest and monetary adjustment are also added to the due sums.

In 2020, the maximum net monthly amount for CIG was the following:

  • for salary up to € 2,159.48: € 939.89 (€998.18 gross);
  • for salary exceeding € 2,159.48: € 1,129.48 (€1,199.72).

The CIG treatment received during the 12 months preceding the opening of the insolvency proceedings must be deducted from the amount due. Also wages paid during the three months preceding the termination of the employment relationship, as well as the mobility allowances benefited during the three months following the termination of the employment relationship are to be deducted.

‘Fondo di Garanzia’ intervenes even if the employer has failed to pay social contributions. Workers, in the event of insolvency proceedings, may request unpaid social security contributions to be considered as paid. Moreover, INPS intervenes also in case the employer fails to pay contributions to a supplementary pension fund.

‘Fondo di Garanzia’ is financed by employers’ contributions. Payments to workers are independent from whether or not employers have paid contributions.


  • Companies

Involved actors

INPS administers the fund. Companies fund it through social security contributions.


No information available.


No information available.


‘Fondo di garanzia’ only intervenes in case of insolvency or enforcement proceedings and does not cover all the unpaid wages. 


No information available.
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