Exemption from Social Security Contributions for Companies

Subject: Exemption from Social Security Contributions for Companies That Do Not Apply for Wage Supplementation

This document sets forth the guidelines provided by INPS regarding the exemption from the payment of social security contributions for companies that do not apply for wage supplementation benefits, 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 the payment of contributions subject to relief for a maximum period of eight weeks, to be used by March 31, 2021, within the limits of the hours of wage supplementation already utilized in May and/or June 2020, excluding premiums and contributions due to INAIL, recalculated and applied on a monthly basis. This exemption is an alternative to applying for new wage supplementation benefits provided for by Law 178/2020, with respect to the same production unit. To qualify for the exemption, employers must have utilized, at least in part, wage supplementation benefits attributed to COVID-19 during the months of May and/or June 2020.

This exemption is subject to prior authorization by the European Commission (to ensure compliance with state aid regulations).

Once the results of this authorization have been published in a specific notice, INPS will issue instructions on how to take advantage of the statutory measure in question, with particular regard to how employers should complete their contribution reports.

The beneficiary eligible for the exemption is therefore a private employer—even if not a business owner (with the exception of those operating in the agricultural sector)—who received wage supplementation benefits in May and June 2020, regardless of whether the employees on the payroll during the months in which the exemption is actually applied are the same employees who were on the payroll while the wage supplementation benefits were being received.

In the event of a transfer of a business unit, the right to avail oneself of the exemption remains with the transferring employer, and the transferee does not acquire the right to avail itself of the exemption. However, in the case of a merger (whether by incorporation or by consolidation), the exemption may be availed of by the company resulting from the merger or consolidation.

Amount of the Exemption

contribution not subject to exemption

The amount of the exemption is equal to the employer's contribution that is not

paid for the number of hours of wage supplementation received during the months of

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