Exemption from Social Security Contributions for Companies

Subject: Exemption from social security contributions for companies not requesting wage supplementation treatments

This document outlines the guidelines provided by INPS regarding the exemption from social security contributions for companies that do not request wage supplementation treatments, as introduced by the new 2021 Budget Law (Art. 1, paras. 306-308 of the 2021 Budget Law).

The legislation provides for an exemption from contributions subject to relief for a maximum period of eight weeks, usable by March 31, 2021, within the limits of the wage supplementation hours already utilized in May and/or June 2020, excluding premiums and contributions due to INAIL, re-parameterized and applied on a monthly basis. This exemption is an alternative to requesting new wage supplementation treatments provided by Law 178/2020, in reference to the same production unit. For the purpose of recognizing the exemption, employers must have utilized, at least partially, wage supplementation treatments with a COVID-19 reason in May and/or June 2020.

This exemption is subject to prior authorization from the European Commission (compatibility with State Aid regulations).

Once the outcome of this authorization is published, INPS will issue, via a specific message, instructions for the utilization of the legal measure in question, with particular regard to the methods for employers to complete contribution declarations.

The beneficiary of the exemption is therefore the private employer, including non-entrepreneurs (with the exception of those operating in the agricultural sector), who utilized wage supplementation treatments in May and June 2020, regardless of whether the employees in force during the months of actual exemption utilization are the same employees in force during the utilization of wage supplementation treatments.

In the event of a business unit transfer, the right to utilize the exemption remains with the transferring employer, with no transfer to the transferee of the possibility to utilize it. However, in the case of a merger (whether by incorporation or consolidation), the exemption may be utilized by the company resulting from the merger/incorporation process.

Amount of the exemption

contributions not subject to exemption

The amount of the exemption corresponds to the employer contributions not

paid for the number of wage supplementation hours utilized in the months of

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