Budget Law: Changes Effective January 1, 2020
- January 7, 2020
- Reading time: 9 min
On December 30, 2019, Law No. 160 of December 27, 2019 (the so-called “2020 Budget Law”) was published and entered into force on January 1, 2020. Below are the provisions we believe to be of greatest interest.
Fund to Reduce the Tax Burden on Employees
(Article 1, paragraph 7)
In order to reduce the tax burden on individuals, a fund called the “Fund for the Reduction of the Tax Burden on Employees” is established in the MEF’s budget estimate, with an allocation amounting to
3 billion euros for 2020;
5 billion euros for 2021.
The measures aimed at achieving the aforementioned reduction will be implemented through future specific regulatory measures, within the limits of the allocated resources.
Incentives for Hiring Entry-Level (or Dual) Apprentices
(Article 1, paragraph 8)
For first-level apprenticeship contracts leading to a vocational qualification or diploma, a high school diploma, or a certificate of advanced technical specialization, if:
entered into during 2020
by employers who have 9 (nine) or fewer employees
To promote youth employment, a social security contribution relief equal to 100% of the contributions is granted, limited to the first three years of the contract.
For apprenticeship periods following the third one, the 10% rate remains in effect.
Revision of INAIL Rates
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