2021 Budget Law
- Studio Piceci
- Jan. 15, 2021
- Reading time: 13 min
This document outlines some of the most significant changes in labor law introduced by the 2021 Budget Law, Law No. 178 of December 30, 2020. Specifically, it summarizes the provisions relating to:
Deduction for employees (Article 1, paragraphs 8-9)
Contribution exemption for hiring young people under 36 (Article 1, paragraphs 10-15)
Contribution exemption for hiring women (Article 1, paragraphs 16-19)
Fund for exemption from social security contributions owed by self-employed workers and professionals (Article 1, paragraphs 20-22)
Support for working mothers returning to work (Article 1, paragraphs 23-24)
Paternity leave (Article 1, paragraphs 25, 363-364)
Contribution exemption for agricultural entrepreneurs and young farmers (Article 1, paragraph 33)
Southern Italy tax relief (Article 1, paragraphs 161-169)
Extension and renewal of fixed-term contracts (Article 1, paragraph 279)
Extension of Covid layoff benefits (Article 1, paragraphs 299-314)
Freeze on layoffs until March 31 (Article 1, paragraphs 309-311)
Interprofessional expansion agreement (Article 1, paragraph 349)
ISCRO (Article 1, paragraphs 386-401)
Vulnerable workers (Article 1, paragraphs 481-484)
Provisions on pensions (Article 1, paragraphs 336-339)
Baby bonus (Article 1, paragraph 362)
Contribution to mothers with disabled children (Article 1, paragraph 365)
The provisions shall apply from January 1, 2021.
Deduction for employees (Article 1, paragraphs 8-9)
For the purpose of a structural review of the deduction system, the deduction introduced in 2020 is stabilized, providing for a tax deduction for 2021 of €1,200 for a total income of €28,000, re-proportioned for incomes between €28,000 and €32,000, and €1,800 for a total income of €32,000, re-proportioned for incomes between €32,000 and €36,000, for income from employment and certain types of income similar to that from employment. a tax deduction for 2021 of €1,200 for a total income of €28,000, re-proportioned for incomes between €28,000 and €40,000.
Contribution exemption for hiring young people under 36 (Article 1, paragraphs 10-15)
In order to promote stable youth employment, the measure of contribution exemption for new permanent hires and for the conversion of fixed-term contracts into permanent contracts for young people, introduced by the 2018 Budget Law, for the two-year period 2021-2022, is recognized at 100%, for a maximum period of 36 months and in any case up to a maximum limit of €6,000.00 per year, with reference to individuals who, on the date of the first incentivized hire, have not reached the age of 36.
The period during which the exemption can be enjoyed is extended to 48 months if the recruitment concerns a worker whose place of work is located in one of the following regions: Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria, and Sardinia.
The contribution exemption applies to employers who have not carried out, in the six months prior to hiring, nor will carry out, in the nine months following hiring, individual dismissals for justified objective reasons or collective dismissals of workers with the same job title in the same production unit.
The effectiveness of these provisions is subject to authorization by the European Commission.
Finally, the above exemption does not apply in the event of confirmation of the apprenticeship contract at the end of the training period, as well as for permanent hires, within 6 months of obtaining the qualification, of students who have carried out work experience at the same employer1 or a period of apprenticeship for the qualification and professional diploma, a secondary school diploma, a higher technical specialization certificate, or periods of apprenticeship in higher education, for which the exemption from paying contributions remains valid at a rate of 50 percent up to a maximum amount of €3,000 per year, for a maximum period of 12 months, provided that the worker has not reached the age of 30 on the date of continuation (the provision of Article 106 of Law 205/2017 remains valid; in this case, the exemption is applied from the first month following the month in which the contribution benefit linked to the apprenticeship contract expires).
Contribution exemption for hiring women (Article 1, paragraphs 16-19)
For the hiring of female workers in the two-year period 2021-2022, on an experimental basis, the exemption introduced by Law No. 92/2012 is recognized, recognized at 100% and in any case up to a maximum amount of €6,000.00 per year.