The new so-called Cohesion Decree introduces an exemption for hiring workers under 35.
Specifically, the exemption applies to workers hired between 1 September 2024 and 31 December 2025 who are under the age of 35 and have never had a job with an open-ended contract.
The measure provides for 100% relief on employer social security contributions for up to 24 months. However, there is still a ceiling of €500 per month, which rises to €650 for regions in southern Italy, namely Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria and Sardinia
The exemption also applies to the conversion of fixed-term contracts into open-ended contracts, but not to domestic work and apprenticeships
It does allow for cases of previous employment on an apprenticeship contract that was not continued as a normal open-ended employment contract. In any case, employers can only make use of this measure if they have not made any dismissals for legitimate business reasons or collective dismissals in the previous 6 months
The contribution relief in question replaces the UNDER36 relief previously foreseen, but not confirmed by the 2024 Budget Law
The use of this contribution relief, as well as the subsequent ones (“Women Bonus” and “Over 35 for the Special Economic Zones in southern Italy”), is subject to approval by the European Commission, so all hirings will have to be considered as “ordinary” and only subsequently can reimbursement be sought for the previously paid contribution.
