From September the new exemption for hiring young workers

From 1 September it will be theoretically possible to hire young people, women without regular paid employment and workers employed in the regions of southern Italy who benefit from the recruitment incentives provided by Law Decree No. 60 of 7 May 2024, the so-called “Cohesion Decree” (i.e. “Decreto Coesione”), converted by Law No. 95 of 4 July 2024.

Among the hiring incentives in force from 1 September 2024, the “Youth Bonus” (i.e. “Bonus Giovani”) provided by Article 22 of the aforementioned Decree is certainly the most awaited, due to the wide range of beneficiaries it addresses.

“Youth Bonus” (i.e. “Bonus Giovani”)

The relief in question, which is of a contributory nature and is called “Bonus Giovani” (Youth Bonus), was introduced with the aim of encouraging an increase in the stable employment of young people and is aimed at private employers who, in the period between 1 September 2024 and 31 December 2025, hire young people under the age of 35 for their first stable employment, i.e. without a previous open-ended employment relationship. Employers who convert fixed-term employment contracts into open-ended contracts are also included in the group of beneficiaries, subject to the age and employment requirements at the time of conversion (under 35 without previous open-ended contracts). The exemption still excludes the recruitment of managerial staff, domestic workers and apprentices.

The two-year relief is available for a maximum of 24 months from the day of recruitment and is equal to 100% of the employer’s contributions up to a maximum of EUR 500 per month. According to Article 22, paragraph 3, this amount is increased to EUR 650 per month if the hiring or conversion to an open-ended contract of under 35s, in their first permanent job, takes place in premises or production units located in one of the regions included in the so-called Single Economic Zone (ZES), the Special Economic Zone for the South of Italy, more precisely Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria and Sardinia.

The exemption in question is also granted on a residual basis for the hiring of workers who, at the date of commencement of employment, were employed on an indefinite-term basis by a different employer, which has partially benefited from the contribution relief.

Paragraph 5 of Article 22 of the “Cohesion Decree” (i.e. “Decreto Coesione”) reminds that, in addition to the possession of the DURC certifying the regularity of the employer’s contributions, the use of the exemption is subject to the observance of the general rules for the use of incentives under Legislative Decree No. 150/2015, including the provisions on health and safety at work and the collective agreements applied. In addition to the general principles mentioned above, the provision makes the benefit of the exemption from contributions conditional on the absence of collective or individual dismissals for justified objective reasons in the six months preceding the recruitment in the same production unit where the employment relationship with the young worker begins. At the same time, the same provision provides for the cancellation and recovery of the exemption in the event of dismissals for justified objective reasons of workers recruited with the two-year exemption or of workers with the same qualification, which occur in the six months following the recruitment in the same production unit.

In order to receive the incentive in question, which, as mentioned above, is still hypothetical for the time being, employers will have to wait for the approval of the European Commission and the subsequent instructions from the Inps on the modalities for the use of the relief and the recovery of arrears for the months prior to the Commission’s approval.

Under-30 structural exemption

It is the uncertainty associated to the waiting period for utilisation, as has already happened in the past for the under 36 exemption, that has induced possible beneficiary employers to opt for the under 30 structural exemption, introduced by Law 205/2017, with a similar scope to the Youth Bonus and for a long time present among the structural incentives for hiring workers.

It should be recalled that the above-mentioned three-year exemption provides the possibility for private employers, in the case of permanent recruitment or conversion of fixed-term contracts of young people under 30 in their first stable employment, to benefit from a contribution relief equal to 50% of the employer’s contributions, up to an annual limit of EUR 3,000.

Women’s Bonus (i.e.“Bonus Donne”) and Zes Bonus (i.e. “Bonus Zes unica”)

Among the incentives introduced by the “Cohesion Decree” starting from 1 September 2024, in addition to the Youth Bonus, there are two measures aimed at promoting equal opportunities in the labour market and the development of employment in the southern areas of Italy, called “Women’s Bonus” (i.e. “Bonus Donne”) and “Zes Bonus” (i.e. “Bonus ZES unica”).

The first, provided by Article 23 of Legislative Decree No. 60/2024, is addressed to private employers who, during the period from 1 September 2024 to 31 December 2025, hire on an open-ended basis: (i) women of any age who have not been in regular paid employment for at least six months and who reside in the regions of the Mezzogiorno; and (ii) women of any age who have not been in regular paid employment for at least 24 months and who reside anywhere. The exemption is valid for two years, for a maximum of 24 months, and allows for a reduction in contributions equal to 100% of the employer’s contributions, up to a maximum of EUR 650 per month for each worker.

On the other hand, the Zes Bonus, provided by Article 24 of Decree-Law 60/2024, is directed to private employers with up to 10 employees who, between 1 September 2024 and 31 December 2025, hire workers with a permanent contract, of at least 35 years old, who have been unemployed for at least 24 months and who are employed in one of the offices or production units located in the regions of the Special Economic Zone. The incentive is granted for a maximum period of 24 months, up to a maximum of EUR 650 per month.

As stated in the last paragraph of Article 24 of the “Cohesion Decree”, it will also be necessary to wait for the European Commission’s authorisation in order to benefit from the Zes Bonus contribution exemption.