Contribution relief for new hires

30 May 2024 2 min read

By Tommaso Erboli and Federico Strada

At a glance

  • Decree 60/2024 (Decree) renews the contribution relief for employers who hire disadvantaged women, and individuals under 35 in Southern Italy.
  • The employer's contribution relief covers 100% of the employer’s contribution for 24 months.
  • The incentive applies to hires made between 1 September 2024 and 31 December 2025.
  • It is aimed at hiring disadvantaged women and, in Southern Italy, people under 35 years old.

The Decree renews the contribution relief for employers who hire disadvantaged women (such as victims of domestic violence or women from areas with low female employment rates) and individuals under 35 in Southern Italy. The Decree is now in the process of being converted into a law, and it will provide significant support for both employers and potential employees.

The employer's contribution relief covers 100% of the employer’s contribution for 24 months.

The incentive applies to hires made between 1 September 2024 and 31 December 2025, aiming to encourage long-term employment opportunities. However, these contribution exemptions are subject to specific limits and regulations like previous mechanisms for contribution relief, ensuring that the process remains fair and manageable.

For individuals under 35, the exemption is particularly beneficial but comes with a condition that it must be their first permanent employment contract. This requirement is designed to help young people enter the workforce with stable and lasting employment. For hiring women, especially those who have faced significant barriers to employment, they must have been unemployed for at least 24 months. This period is reduced to six months for those residing in Southern regions or the Islands.

It is important to note that authorisation of the European Commission is currently being sought, in relation to contribution exemptions for hiring young people in the Southern regions. This additional step is necessary to ensure compliance with broader European regulations. However, the contribution relief for hiring disadvantaged women doesn’t need this approval, which makes the process faster and simpler.