Under-35 Bonus – News 57/2020

As is well known, Law 160/2019, by amending Article 1, paragraph 102, of Law 295/2017, provided, for new hires made in 2019 and 2020 of workers up to 35 years of age (34 years and 364 days), an exemption from the payment of employer-paid social security contributions. The “basic” condition is that the hire be made under a permanent employment contract with increasing protections. Provided the other required conditions are met, the benefit will apply for a maximum period of 36 months starting from the date of the employee’s hire and may be extended, for any remaining period, to any other employers who subsequently hire the same individual.

Starting in 2021, the age limit for eligibility for the exemption will be set at 30 years of age.

With the issuance of this circular, INPS has ordered the adjustment in Uniemens, effective as of April 2020, for the bonus in question.

Below is a summary of the key points of the circular referred to above.

From a subjective standpoint, the social security contribution exemption in question is “intended” for the hiring of young workers who, throughout their entire working lives, have never held a permanent employment contract.

With regard to EU legislation, the benefit constitutes a general measure, that is, one potentially applicable to all private employers operating in any economic sector of the country, whose production facilities are located anywhere within the national territory.

Therefore, it is necessary to clarify that the regulation does not confer an advantage on certain companies, industries, or geographic areas within the country.

Interested employers

Private entities (businesses, professional firms, associations, foundations, nonprofit organizations, public economic entities, etc.)

NO Public administrations and domestic employers.

Duration of the subsidy: 36 months

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