Exemption from the payment of social security contributions for companies

Subject: Exemption from social security contributions for companies that do not request wage supplementation benefits

This document outlines the instructions provided by INPS (National Social Security Institute) regarding the exemption from social security contributions for companies that do not request wage supplementation benefits, as introduced by the new 2021 Budget Law (Article 1, paragraphs 306-308 of the 2021 Budget Law).

The regulation provides for exemption from the contributions subject to relief for a maximum period of eight weeks, which can be used by March 31, 2021, within the limits of the hours of wage supplementation already used in May and/or June 2020, excluding premiums and contributions due to INAIL (National Institute for Insurance against Accidents at Work), re-parameterized and applied on a monthly basis. This exemption is an alternative to requesting new wage supplementation benefits provided for by Law 178/2020, with reference to the same production unit. To be eligible for the exemption, employers must have used, at least partially, wage supplementation benefits with COVID-19 as the reason in May and/or June 2020.

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

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

The beneficiary of the exemption is therefore the private employer, including those who are not entrepreneurs (with the exception of those operating in the agricultural sector) and who have used wage supplementation benefits in May and June 2020, regardless of whether the employees on staff during the months in which the exemption is actually used are the same employees on staff during the use of wage supplementation benefits.

In the event of a transfer of a branch of a company, the right to use the exemption remains with the transferring employer, without any transfer to the assignee of the possibility of using it. However, in the event of a merger (either by incorporation or by union), the exemption may be used by the company resulting from the union/incorporation process.

Exemption Amount

contributions not subject to exemption

The amount of the exemption is equal to the employer contributions not

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

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