Exemption from social security contributions for companies
- Studio Piceci
- February 22, 2021
- Reading time: 3 min
Subject: Exemption from social security contributions for companies that do not request wage supplementation
This document contains the guidelines provided by INPS (the Italian National Social Security Institute) regarding the exemption from social security contributions for companies that do not request wage supplementation introduced by the new 2021 Budget Law (Article 1, paragraphs 306-308 of the 2021 Budget Law).
The legislation provides for exemption from the payment of 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 used 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 applying for new wage supplementation benefits under Law 178/2020, with reference to the same production unit. In order to qualify for the exemption, employers must have used, at least partially, wage supplementation benefits due to COVID-19 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 has been published, INPS will issue instructions on how to apply the law in question, with particular regard to how employers should complete their contribution declarations.
The beneficiary of the exemption is therefore the private employer, even if not an entrepreneur (with the exception of those operating in the agricultural sector), who has benefited from wage supplementation in May and June 2020, regardless of whether the workers employed during the months of actual exemption are the same workers employed during the wage supplementation period.
In the event of a transfer of a business unit, the right to benefit from the exemption remains with the transferring employer, without any transfer to the transferee of the possibility of benefiting from it. On the other hand, in the event of a merger (whether by incorporation or union), the exemption may be enjoyed by the company resulting from the union/incorporation process.
Amount of the exemption
contribution not subject to exemption
The amount of the exemption is equal to the employer's contribution not
paid for the number of hours of wage supplementation used in the months of