The 2025 Budget Law has introduced new contribution relief for private employers, excluding those in agriculture and domestic work, who hire workers on open-ended contracts in Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Sardinia and Calabria.
This new relief, which replaces the scheme previously known as Decontribuzione Sud, is subject to different conditions depending on the type of beneficiary company. Specifically, it is available to micro-enterprises and small and medium-sized enterprises (SMEs), defined as those with no more than 250 employees, provided the aid complies with the “de minimis” limits.
The legislator has also set out that the relief may apply to companies not classified as “micro-enterprises and SMEs,” provided the employer demonstrates, by 31 December of each year, a net increase in permanent employment (i.e. on open-ended contracts) compared to the previous year.
For these larger companies (i.e. not micro-enterprises or SMEs), this relief is granted only after receiving authorisation from the European Commission, with the requirement of maintaining the increase in permanent employment.
The new relief involves an exemption from paying social security contributions, excluding premiums and contributions payable to the National Insurance Institute for Industrial Accidents (INAIL), as outlined below:
- For 2025, the exemption is set at 25% of total social security contributions, up to a maximum of €145 per month for 12 months, for each worker employed on an open-ended contract as of 31 December 2024.
- For 2026, the exemption is set at 20% of total social security contributions, up to a maximum of €125 per month for 12 months, for each worker employed on an open-ended contract as of 31 December 2025.
- For 2027, the exemption remains at 20% of total social security contributions, up to a maximum of €125 per month for 12 months, for each worker employed on an open-ended contract as of 31 December 2026.
- For 2028, the exemption remains at 20% of total social security contributions, but the maximum amount is reduced to €100 per month for 12 months, for each worker employed on an open-ended contract as of 31 December 2027.
- For 2029, the exemption is reduced to 15% of total social security contributions, with a maximum of €75 per month for 12 months, for each worker employed on an open-ended contract as of 31 December 2028.
The exemption in question cannot be combined with incentives provided by current legislation for self-employment, the hiring of individuals under the age of 35, employment in the Southern Italy Special Economic Zone or hiring disadvantaged women.
The benefit is granted subject to having a valid Insurance Contribution Payment Certificate (DURC) and compliance with labour and social legislation, as well as obligations on employing disabled individuals.
