Contribution Relief to Promote Employment in Disadvantaged Areas

News n.8/2025

We would like to draw your attention to two measures that provide contribution relief for employment in disadvantaged areas:

1) SUD PMI tax relief, as provided for by the 2025 Budget Law, art. 1 paragraphs 406 et seq., and as indicated in INPS News No. 32/2025; (page 1 et seq.)

2) ZES (Special Economic Zone) Bonus, for permanent hires of unemployed individuals over 35 who have been unemployed for at least 24 months, as per Law Decree No. 60/2024, Article 24 (so-called “Cohesion Decree”), given the go-ahead with the publication of the Implementing Decree of January 7, 2025, on February 21, 2025. (page 8 et seq.)

SUD PMI Decontribution

Article 1, paragraph 406 et seq. of the 2025 Budget Law provides for private employers, with the exclusion of the agricultural sector and domestic employment contracts, to be exempt from the payment of social security contributions, with the exclusion of premiums and contributions due to the National Institute for Insurance against Accidents at Work, limited to micro, small and medium-sized enterprises that employ permanent workers in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria and Sardinia, in order to maintain levels of employment growth in Southern Italy and contribute to the reduction of territorial disparities.

Private employers who employ no more than 250 employees, whose annual turnover does not exceed 50 million euros and/or whose total annual balance sheet does not exceed 43 million euros (pursuant to Article 1 of Annex I of Commission Regulation (EU) 2014/651 of June 17, 2014) fall within the definition of micro, small, and medium-sized enterprises.

In this regard, it is recalled that in favor of employers carrying out business activities employing more than 250 employees, or exceeding the above-mentioned thresholds provided on annual turnover and/or budget, there is the different contribution exemption referred to in Article 1 paragraphs 413 et seq. of the Budget Law 2025, subject, however, to the prior authorization by the European Commission..

By express legal provision, employers who stipulate apprenticeship contracts are excluded from the scope of application of the measure in question.

The exemption referred to in paragraph 413 is granted on condition that the employer demonstrates, on 31 December of each year, an increase in the number of permanent employment relationships compared to the previous year.

INPS, with a specific News dated January 30, 2025, provided indications and operating instructions for the management of social security obligations related to the contribution exemption measure.

The benefit is available, only for permanent employment relationships already established as of December 31, 2024, provided that the place of employment is located in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia.

In cases where the employer, holding a company registration number whose address coincides with the registered office located in regions not falling within the scope of application of the law, has one or more operating units located in the aforementioned regions of Southern Italy, it is necessary that the INPS territorial office, following a specific request by the employer concerned and after carrying out the necessary checks, inserts the authorization code "0L" in the contribution characteristics of the company registration number, meaning "Employer carrying out the centralized contribution with operating units in the territories of Southern Italy", and which will be valid from 1 January 2025 and with end validity 31 December 2029.

The exemption in question is granted:

- For the year 2025, to the extent of 25% of the total social security contributions, for a maximum amount of EUR 145 on a monthly basis for twelve months, for each permanent employee hired as of 31 December 2024;

- For the year 2026, in an amount equal to 20% of the total social security contributions for a maximum amount of 125 euros on a monthly basis for twelve months, for each permanent worker hired as of December 31, 2025;

- For the year 2027, in an amount equal to 20 percent of the total social security contributions for a maximum amount of 125 euros on a monthly basis for twelve months, for each permanent worker hired as of December 31, 2026;

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