Prepared by Marzio Scaglioni, Leila Rguibi, Silvia Capobianco
As is well known, our legislator aims to promote maximum employment and facilitate the entry into the labor market of specific categories of individuals (for example, young people, women, unemployed people, etc.). One of the ways used to achieve these goals is the contribution relief and/or social security exemption.
In most cases, the relief results in a reduced employer contribution burden and thus generates savings on the overall labor cost for the Company; however, this savings generally does not penalize the employee, who at the time of retirement will have their pension calculated on the “full” amount, without any reduction relating to the savings granted to the employer.
The relief could be temporary, or it can be provided for by our legal framework on a structural basis (i.e., permanent, unless there are subsequent legislative changes) and may require authorization processes, sometimes at a national level, sometimes at a European level.
Moreover, the operativity of most reliefs is subject to the issuance – by the relevant entities (mainly , the “INPS”) – of technical-operational instructions, and therefore, reliefs are not always immediately accessible to the employer. For this reason, there may be a need to recover unutilized reliefs during the period between the date when the benefit measure legally becomes valid and the date when it becomes technically-operatively accessible.
It should also be noted that the possibility of benefiting from any relief is subject to the existence of numerous requirements to be verified at the Company level (for example, possession of the certificate of social contribution compliance – the Italian so-called “DURC” – the compliance with health and safety regulations at the workplace, adherence to the provisions of collective agreements, etc).
In addition to these general requirements, the rules governing each specific relief may require that further conditions are met (e.g., that the company has not carried out collective redundancies in a specific reference time frame, or that the hiring subject to the social contribution relief results in an increase in employment).
Considering that social security reliefs are usually managed within the Company’s payroll cycle, our PwC payroll team is available to assist the Client in all stages useful for the utilization of the Client’s desired benefit, starting from the verification of the existence of the requirements provided by the applicable regulations, up to the actual inclusion of the relief in the Company’s payroll cycle.
Below, we provide an overview of the main reliefs currently available at the national level, noting that this field is constantly evolving and therefore requires a continuous monitoring. Moreover, please consider that any consideration regarding possible reliefs arranged at the local level is excluded.
Under 35 youth bonus
The contribution exemption is applied to hiring with permanent contracts concerning individuals who, on the date of hiring or the incentivized transformation, have not reached the age of thirty-five and have never been employed on a permanent basis throughout their entire working life: companies can benefit from a 100% social contribution exemption to be applied on the social contribution quota due by the employer with amounts varying based on the company’s location and it is applicable for a duration of 24 months.
The maximum annual relief amounts to 6.000 euros annually and is applicable to hiring carried out between 1st September 2024, and 31st December 2025.
For the regions in the Special Economic Zone for the South – single ZES (Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria, and Sardinia), the amount increases to 7.800 euros annually and pertains to the hirings made between 31st January 2025, and 31st December 2025.
Starting 16th May 2025, it is possible to submit the online application for the concession to INPS, both for ongoing relationships and for employment relationships not yet established.
Women’s bonus
The benefit is granted for the hiring of women employed on a permanent basis between 1st September 2024 and 31st December 2025, and concerns:
- women of any age, without a regularly paid job for at least 24 months, regardless of where they resides;
- women of any age, with a profession or in an economic sector characterized by a marked gender employment disparity and without a regularly paid job for at least 6 months;
The incentive is also granted, from 31st January 2025 to 31st December 2025, for companies hiring women:
- of any age, without a regularly paid job for at least 6 months, residing in the regions of the unique Special Economic Zone for the Mezzogiorno.
The exemption is equal to 100% of the social contributions due by the employer, up to a maximum annual limit of 7.800 euros and for a duration of 24 months.
In the case of hiring in the regions of the unique Special Economic Zone for the South, the amount of the benefit cannot exceed 50% of wage costs.
Also in this case, starting from 16th May 2025, it is possible to submit the online application for admission to the benefit to INPS.
Inclusion allowance and support for training and work
In the case of hiring individuals who benefit from the Inclusion Allowance (the Italian so-called Assegno di Inclusione “ADI”) or support for training and work (so-called Supporto per la Formazione e il Lavoro “SFL”), a 100% social contribution exemption is provided for the employer‘, up to a maximum limit of 8.000 euros per year for permanent hirings and for the conversion of fixed-term contracts into permanent contracts.
The amount of the benefit is halved in case of hiring on a fixed-term basis or part-time.
Under 30 youth people
Permanent hirings and the conversion of fixed-term contracts into permanent contracts of young people under 30, never previously hired with an open-ended employment contract can benefit from a 50% reduction of the employer social contributions, up to a maximum of 3.000 euros per year and for a maximum duration of 36 months.
In this case, it is a structural incentive provided by our legal system.
Exemption for the south Italy valid from 2025 – micro, small and medium enterprises
The 2025 Budget Law introduced an exemption for the South Italy that replaces the the Italian so- called “Decontribuzione SUD”.
The contribution reduction is applicable from 2025 to 2029 and provides for each year progressively lower reduction percentages.
For the year 2025, the reduction amounts to 25%, within an annual maximum limit of 1.740 euros.
The reduction shifts to 20% for the years 2026 to 2028 and 15% for the year 2029.
The measure is currently applicable to micro-enterprises, small and medium enterprises that employ no more than 250 employees, and that meet specific economic requirements (in terms of revenue by way of example).
For employers not classified as micro-enterprises, small or medium-sized enterprises, the social contribution exemption is subject to European Union authorization.
Unemployed over 50 and women of any age without paid work
The benefit in question is granted for the hiring of:
- female and male workers aged 50 and over who have been unemployed for more than 12 months;
- women of any age who have been without regularly paid employment for at least 6 months, residing in certain geographical areas;
- women of any age, without a regularly paid job for at least 24 months, regardless of where they resides;
- women of any age, with a profession or in an economic sector characterized by a marked gender employment disparity and without a regularly paid job for at least 6 months.
The exemption is applicable for a period ranging from 12 to 18 months depending on the type of contract used (fixed-term or permanent).
The applicable reduction is equal to 50% of the employer’s social contributions.
Women victims of violence
For the period 2024-2026, employers who hire unemployed women victims of violence, beneficiaries of the “freedom income” (the Italian so-called “reddito di libertà”), can benefit of a 100% social contribution exemption to be applied on the employer’s quota, up to a maximum amount of 8.000 and within the limits of the resources specifically allocated for each year.
The duration of the benefit varies depending on whether it applies to a fixed-term or permanent employment, or to a conversion from a fixed-term contract to a permanent contract.
Fixed-term contract for maternity and paternity replacement
Employers with up to a maximum of 19 employees who hire on a fixed-term basis or use temporary agency workers to replace employees absent for maternity and paternity leave can apply a 50% reduction of social contributions due. The relief applies until the child of the worker on leave reaches 1 year of age, or for 1 year from the acceptance of the adopted or foster child.
Disabled workers
Employers who hire disabled workers or convert their fixed-term contract into permanent positions can benefit from a 36-month social contribution relief.
The contribution relief is available for disabled workers who meet specific and stringent requirements regarding the reduction of work capacity and/or type of impairment. The extent and duration of the relief depend on the type of employment (permanent or temporary) and the type of disability.
Unemployed workers receiving Naspi
In case of full-time and permanent employment of individuals receiving the unemployment indemnity – the Italian so- called NASpI – the employer is entitled to receive 20% of the monthly allowance that would have been paid to the worker by the “INPS”.
Workers suspended for “CIGS” for at least 3 months
Employers who hire on a permanent basis workers involved in a job suspension due to the Company’s use of social safety net – the Italian so- called “Cassa Integrazione Guadagni Straordinaria CIGS” – can apply the reduced rate of 10% for determining the social contributions due by the employer. The worker has to be involved in this suspension for at least 3 months and he has to receive the related wage indemnity at the time of hiring.
The benefit is applicable for a period of 12 months and is subject to the existence of specific requirements to be verified both for the worker and the employer.
Let’s Talk
For a deeper discussion, please contact:
Contatta Marzio Scaglioni – Partner, PwC TLS Avvocati e Commercialisti