“Under 36” contribution exemption

Following the authorization of September 16 by the European Commission, INPS has released the instructions to take advantage of the "Under 36" contribution exemption, for permanent hirings and conversions made by December 31, 2021 of young people who have not reached 36 years of age on the date of hiring, exemption provided for by the Budget Law for 2021 No. 178/2020, in order to promote stable youth employment.

The exemption in question is recognized to all private employers, including employers in the agricultural sector, regardless of whether or not they assume the nature of an entrepreneur. The incentive is not recognized to companies in the financial sector, with Ateco code 64, 65 and 66, as they are part of section "K" expressly excluded from this exemption; the exemption does not apply to the Public Administration. We remind you that the measure does not apply to apprenticeship relationships, domestic work contracts, and hiring with an intermittent work contract.

Coordination with other incentives

This exemption, deriving its discipline from the structural youth exemption referred to in Article 1, paragraphs 100 to 108, 113 and 114 of the 2018 Budget Law, "cannot be combined with other exemptions or reductions in financing rates provided for by current legislation, limited to the period of application of the same".

Therefore, this measure cannot be combined with, for example:

• The incentive for hiring women who have been without regularly paid employment for at least 24 months, or who have been unemployed for at least 6 months and belong to specific areas, economic sectors, or professions as per Law 92/2012, Article 4, paragraphs 8 to 11;

• The hiring incentive aimed at so-called 'disadvantaged' women, as provided for by the 2021 Budget Law;

• Decontribuzione Sud (Southern Italy tax relief), for the same employees.

Incentive Amount

The incentive is equivalent to an exemption from 100% of the total social security contributions payable by employers, up to a maximum of €6,000 per year, for a period of thirty-six months. The exemption is granted for forty-eight months to private employers who hire staff in a workplace or production unit located in the following regions: Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria, and Sardinia.

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