Last Updated on May 15, 2024
The Government has adopted Decree Law No. 60 of 7 May 2024 (the so-called ‘Cohesion Decree’), which contains a series of incentives aimed at employment for the most disadvantaged in terms of age, gender, and employment status, as well as encouraging self-employed entrepreneurship in order to reduce territorial disparities. For each measure the decree specifies the recipients, duration, type of incentivised contract and any possible cumulability with other benefits.
Young Entrepreneurs Bonus
Unemployed persons under the age of 35 who, from 1 July 2024 to 31 December 2025, set up a business in sectors strategic for the development of new technologies and the digital and ecological transition, will be totally exempt from employers’ social security contributions (excluding INAIL premiums and contributions) when they hire under-35-year-olds with open-ended contracts, within the same timescale. This relief will be capped at €800 per month for each worker and will last for a maximum period of three years, or, in any case, until no later than 31 December 2028.
At the same time, ‘young entrepreneurs’ may apply to the INPS for a contribution for the business set up of €500 per month, for a maximum of three years and, in any case, until no later than 31 December 2028.
These measures are subject to authorisation by the European Commission.
Young People’s Bonus
Private employers who, from 1 September 2024 to 31 December 2025, hire under-35-year-olds with an open-ended contract who have never had a contract of this type or transform previous fixed-term contracts, will be totally exempt from their social security contributions for 24 months (excluding INAIL premiums and contributions). The maximum monthly amount of the relief is €500 for each worker, increasing to €650 for hirings for offices or production units in Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia (Single Special Economic Zone for Southern Italy, the so-called ZES).
Recruitment of managerial staff is excluded from this benefit.
Companies are eligible for this benefit if, in the six months preceding the hiring, they have not made any dismissals (individual or collective) in the same production unit for economic reasons and the benefit will be revoked should the employer, in the 6 months following the hiring, fire either the employee in question on redundancy grounds or any other employee with the same qualification employed in the same production unit.
Implementation of this relief is subject to authorisation by the European Commission.
Women’s Bonus
Private employers who, from 1 September 2024 to 31 December 2025, hire, with an open-ended contract, women of any age who have not been in regular paid employment for at least:
- 24 months and are resident anywhere in Italy;
- 6 months and are resident in the regions of the Single Special Economic Zone for Southern Italy (ZES);
- 6 months, if hired in a profession or economic sector characterised by a marked gender employment gap;
will be totally exempt from their social security contributions for 24 months (excluding INAIL premiums and contributions). The monthly amount of relief is capped at €650 for each female worker.
The incentive is granted on condition that there is a net increase in the number of employees, calculated on the difference between the number of workers employed each month and the average number of workers employed in the previous 12 months.
ZES Bonus
Private employers with up to 10 employees who, from 1 September 2024 to 31 December 2025, hire, with open-ended contracts, in an office or production unit in the Special Economic Zone (ZES) over-35-year-olds who have been unemployed for at least 24 months, are eligible for a 24-month total exemption from payment of their social security contributions (excluding INAIL premiums and contributions). The monthly amount of the relief is capped at €650 for each worker.
Recruitment of managerial staff is excluded from this benefit.
Companies are eligible for this benefit if, in the six months preceding the hiring, they have not made any dismissals (individual or collective) in the same production unit on redundancy grounds and the benefit will be revoked should the employer, in the 6 months following the hiring, fire either the employee in question on redundancy grounds or any other employee with the same qualification employed in the same production unit.
Implementation of this relief is subject to authorisation by the European Commission.
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The incentives detailed in the new Decree do not apply to domestic employment or apprenticeships, cannot be accumulated with other exemptions or reductions in force, but are compatible, without any reduction, with the increase in the cost of labour allowed as a deduction in the presence of new hirings, introduced by the recent Legislative Decree No. 216/2023 (the so-called maxi-deduction).
It should be noted that, as specified by law, application of the exemptions in question does not affect future pensions, and the rate used to calculate pension benefits remains unchanged.
Definition of how the exemptions will be implemented is referred to the adoption of subsequent ministerial decrees. In any case, the incentives will be limited by the spending totals established for each, and constant monitoring by the INPS will mean that no further applications will be accepted if the set thresholds are detected, even prospectively, as being reached.
The general principles for benefitting from these incentives set forth in Article 31 of Legislative Decree 150/2015 remain unchanged, including, in particular, the requirement of social security contribution regularity attested by the DURC.
Toffoletto De Luca Tamajo is at your disposal for any support or clarification you may need.
Per maggiori informazioni: comunicazione@toffolettodeluca.it
