Summary and Translation of Incentives for Hiring Young People
The circular outlines several incentives for employers hiring young people under permanent contracts, as per the legislation passed on December 27, 2017 (Law No. 205). These incentives aim to promote stable youth employment.
Main Incentives:
50% Contribution Exemption:
Eligibility: Private employers hiring young people under a permanent contract starting from January 1, 2018.
Details: Employers are exempt from paying 50% of the total social security contributions, excluding premiums and contributions due to INAIL. The exemption is limited to a maximum amount of €3,000 per year, prorated and applied monthly.
Duration: This exemption applies for up to 36 months from the hiring date.
Full Contribution Exemption for Certain Cases:
Eligibility:
Young people hired within six months of obtaining their qualification who had previously undertaken internships or apprenticeships with the same employer.
Young people who completed school-to-work programs or periods of apprenticeships.
Details: Employers are exempt from paying 100% of the social security contributions, excluding INAIL premiums, for 36 months, with the same annual cap of €3,000.
Exemption for Retaining Apprentices:
Eligibility: Employers retaining apprentices after the completion of their apprenticeship period, provided the worker is under 30 years old at the time of retention.
Details: This includes a 50% exemption of social security contributions, excluding INAIL premiums, up to €3,000 per year for a maximum period of 12 months.
Additional: This is in addition to any existing benefits under previous legislation.
Conditions for Eligibility:
Age Limit: The worker must be under 30 years old at the time of the new hiring. For hires made in 2018, the age limit is increased to under 35 years (34 years and 364 days).
No Previous Permanent Contracts: The worker must not have been previously employed under a permanent contract with the same or another employer, except for periods of apprenticeship not leading to permanent employment.
Compliance with Social Security and Labor Laws: Employers must comply with social security contributions and not violate fundamental labor laws. They must also respect national and territorial collective labor agreements.
Accounting Instructions:
Specific accounting codes have been established to record the different types of contribution exemptions, ensuring proper tracking and compliance.
By promoting these incentives, the legislation aims to encourage the hiring of young people in stable, long-term positions, facilitating their entry into the labor market and reducing youth unemployment.
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