For each measure the Decree specifies the recipients, duration, type of incentivised contract, and whether it is possible to combine the incentives with other benefits.
Unemployed persons under the age of 35 who set up a business in certain strategic technology sectors during the period from 1 July 2024 to 31 December 2025, will be totally exempt from employers’ social security contributions (excluding occupational accident insurance premiums and contributions) when they hire workers under 35 years old with indefinite-term contracts during that period. This relief will be capped at EUR 800 per month for each worker and will last for a maximum period of three years (and in any case until no later than 31 December 2028).
These ‘young entrepreneurs’ may also apply to the social security authority for a contribution toward their business set-up costs of EUR 500 per month, for the same maximum period.
Private employers who, from 1 September 2024 to 31 December 2025, give indefinite-term employment contracts (or transform existing fixed-term contracts) to non-management workers under the age of 35 who have never had an indefinite-term contract, will be totally exempt from social security contributions for those workers for 24 months (excluding occupational accident insurance premiums and contributions). The maximum monthly amount of the relief is EUR 500 for each worker, increasing to EUR 650 for hirings for workplaces in the Single Special Economic Zone for Southern Italy (the so-called ZES).
Employers are only eligible if they have not made any dismissals (individual or collective) in the same production unit for economic reasons in the six months preceding the hiring, and the benefit will be revoked should the employer, in the six months following the hiring, terminate either the employee in question or any other employee with the same qualification employed in the same production unit on redundancy grounds.
Private employers who, from 1 September 2024 to 31 December 2025, grant an indefinite-term employment contract to women of any age who have not been in regular paid employment for at least:
will be totally exempt from social security contributions for those workers for 24 months (excluding occupational accident insurance premiums and contributions). The monthly amount of relief is capped at EUR 650 for each such worker.
Private employers with up to ten employees who, from 1 September 2024 to 31 December 2025, grant indefinite-term employment contracts in the ZES to non-management workers over the age of 35 who have been unemployed for at least 24 months, are eligible for a 24-month total exemption from payment of social security contributions (excluding occupational accident insurance premiums and contributions) for those workers. The monthly amount of the relief is capped at EUR 650 for each worker.
Eligibility for this benefit is subject to the same restrictions on dismissals that apply to the Young People’s Bonus.
The incentives detailed in the new Decree do not apply to domestic employment or apprenticeships. They cannot be combined with other exemptions or reductions, but are compatible with the recently introduced ‘maxi-deduction’ for the increase in the cost of labour for new hirings.
The general principles for benefitting from employment incentives remain unchanged, including in particular the requirement of verified social security contribution regularity. It should also be noted that application of the exemptions does not affect future pensions, and the rate used to calculate pension benefits remains unchanged.
Definition of exactly how the exemptions will be implemented will be set forth in subsequent ministerial decrees. In any case, the incentives are limited by the spending totals established for each, and constant monitoring by the social security authority will mean that no further applications will be accepted if the set thresholds are detected as being reached, even prospectively.
Finally, it is important to note that several of these measures are subject to authorisation by the European Commission.
Discover more about compensation and benefits on our Global HR Law Guide
