Contribution relief to promote employment in disadvantaged areas
- Studio Piceci
- February 25, 2025
- Reading time: 12 min
News . 8/2025
We would like to draw your attention to two measures that provide tax relief for employment in disadvantaged areas:
1) SUD PMI social security contribution relief, provided for by the 2025 Budget Law, Article 1, paragraphs 406 et seq., and as indicated in News No. 32/2025; (page 1 et seq.)
2) SEZ bonus for permanent hires of individuals over 35 who have been unemployed for at least 24 months, as per Decree Law No. 60/2024, Art. 24 (known as the "Cohesion Decree"), given the green light thanks to the publication on February 21, 2025, of the Implementing Decree of January 7, 2025. (page 8 et seq.)
SUD SME tax relief
Article 1, paragraph 406 et seq. of the 2025 Budget Law provides for private employers, with the exception of the agricultural sector and domestic employment contracts, an exemption from the payment of social security contributions, excluding premiums and contributions due to the National Institute for Insurance against Accidents at Work, limited to micro, small, and medium-sized enterprises that employ workers on permanent contracts in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria, and Sardinia, in order to maintain employment growth levels in southern Italy and contribute to reducing regional disparities.
The concept of micro, small, and medium-sized enterprises includes private employers with no more than 250 employees, whose annual turnover does not exceed €50 million and/or whose total annual balance sheet does not exceed €43 million (pursuant to Article 1 of Annex I to Commission Regulation (EU) 2014/651 of June 17, 2014).
In this regard, it should be noted that employers who run businesses with more than 250 employees, or who exceed the aforementioned thresholds in terms of turnover and/or annual balance sheet, are eligible for a different contribution exemption referred to in Article 1, paragraphs 413 et seq. of the 2025 Budget Law, subject, however, to prior authorization by the European Commission.
By express provision of law, employers who enter into 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 December 31 of each year, an increase in employment, compared to the previous year, in permanent employment contracts.
In a circular dated January 30, 2025, INPS provided guidance and operational instructions for managing social security obligations related to the contribution exemption measure.
The benefit applies only to permanent employment relationships already in place on December 31, 2024, provided that the place of work is located in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria, and Sardinia.
In cases where the employer, holder of a company registration number whose address coincides with the registered office located in regions not covered by the scope of application of the regulation, has one or more operating units located in the aforementioned regions of Southern Italy, the competent local INPS office must, following a specific request from the employer concerned and after carrying out the necessary checks, enter the authorization code "0L" in the contribution characteristics of the company registration number, meaning 'Employer who centralises contributions with operating units in the southern regions', which will be valid from 1 January 2025 until 31 December 2029.
The exemption in question is recognized:
- For the year 2025, equal to 25% of total social security contributions, for a maximum amount of €145 per month for twelve months, for each permanent worker hired as of December 31, 2024;
- For the year 2026, equal to 20% of total social security contributions, for a maximum amount of €125 per month for twelve months, for each permanent worker hired as of December 31, 2025;
- For the year 2027, equal to 20% of total social security contributions, up to a maximum of €125 per month for twelve months, for each permanent employee hired as of December 31, 2026;