Budget Law: New Provisions Effective from January 1, 2020

On December 30, 2019, Law No. 160 of December 27, 2019 (the so-called "2020 Budget Law") was published, entering into force on January 1, 2020. Below are the provisions we deem of greatest interest.

Fund for the reduction of the tax burden on employees

(Article 1, paragraph 7)

To reduce the tax burden on individuals, a fund named "Fund for the reduction of the tax burden on employees" is established within the MEF's forecast statement, with an allocation whose amount will be

• 3 billion euros for 2020;

• 5 billion euros for 2021.

The aforementioned reduction measures will be implemented through future specific legislative provisions, within the limits of the allocated resources.

Incentives for hiring first-level (or dual system) apprentices

(Article 1, paragraph 8)

For first-level apprenticeship contracts for professional qualifications and diplomas, upper secondary education diplomas, and higher technical specialization certificates, if:

• entered into during the year 2020

• by employers with a workforce of 9 (nine) or fewer employees

a 100% contribution exemption is granted, limited to the first three years of the contract, with the aim of promoting youth employment.

For apprenticeship periods beyond the third year, the 10% rate remains fixed.

Revision of Inail rates

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