"Under 36" Contribution Exemption

Following the European Commission's authorization on September 16th, INPS has published instructions for accessing the "Under 36" contribution exemption. This exemption applies to permanent hirings and conversions made by December 31, 2021, for young individuals under 36 years of age at the time of employment, as stipulated by the 2021 Budget Law no. 178/2020, with the aim of promoting stable youth employment.

The exemption in question is granted to all private employers, including those in the agricultural sector, regardless of whether they qualify as entrepreneurs. This incentive is not extended to financial sector companies (Ateco codes 64, 65, and 66), as they fall under section "K," which is expressly excluded from this exemption. The exemption does not apply to public administrations. It is important to note that this measure does not apply to apprenticeship contracts, domestic work contracts, or intermittent employment contracts.

Coordination with Other Incentives

This exemption, deriving its regulations from the structural youth exemption outlined in Article 1, paragraphs 100 to 108, 113, and 114 of the 2018 Budget Law, "is not cumulative with other exemptions or reductions in financing rates provided for by current legislation, limited to their respective periods of application."

Therefore, this measure is not cumulative with, for example:

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

• The hiring incentive for so-called "disadvantaged" women, as stipulated by the 2021 Budget Law;

• Southern Italy Contribution Relief, for the same workers.

Incentive Amount

The incentive provides for a 100% exemption from the payment of total social security contributions borne by employers, up to a maximum annual amount of 6,000 euros, for a period of thirty-six months. However, the exemption is extended to forty-eight months for private employers who hire in a registered office or production unit located in the following regions: Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria, and Sardinia.

Would you like to know more?

Subscribe to studiopiceci.it to continue reading these exclusive posts.

Subscribe now