With a Circular dated 30 January 2025, the Italian Social Security Institute (INPS) implemented the Contribution Relief for Southern Italy included in the 2025 Budget Law. The measure is intended for micro, small and medium-sized enterprises employing staff on open-ended contracts in Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria and Sardinia.
The relief only applies to businesses with fewer than 250 employees and with annual turnover not exceeding €50 million and/or an annual balance sheet total not exceeding €43 million.
For 2025, the exemption amounts to 25% of total social security contributions, within the limits of the EU de minimis aid framework, up to a maximum of €145 per month for each employee on an open-ended contract as of 31 December 2024. The incentive will also be available in subsequent years, with gradually decreasing amounts, through to 2029, subject to approval by the European Commission.
Employers eligible for the relief will be assigned a specific INPS authorisation code “0L” and may recover January arrears by the April 2025 payroll.
The relief also applies to businesses that do not meet the criteria for micro, small or medium-sized enterprises, provided that they demonstrate, by 31 December each year, an increase in the number of employees on open-ended contracts compared to the previous year.
However, this version of the relief is not yet operational, as INPS has not yet issued the relevant implementing instructions.
