Extension of the tax exemption to promote stable youth employment

News Flash No. 07/2022

Subject: Extension of the tax exemption to promote stable youth employment, female employment, and the Southern Italy Social Security Contribution Reduction

In its Notice No. 403 of January 26, 2021, INPS announced that the European Commission, on January 11, 2022, by Decision C(2022) 171 final, extended the applicability of certain incentives provided for in Budget Law No. 178/2020 until June 30, 2022.

Therefore, until June 30, 2022:

1. The following may be utilized (provided all legal requirements are met): the exemption for permanent hires/conversions made between January 1, 2022, and June 30, 2022, of young people under 36 who have never held a permanent employment relationship either with the hiring employer or with any other employer (for an amount equal to the employer’s contribution, up to a maximum limit of €6,000 per year and for a maximum period of 36 months, with the possibility of extension to 48 months for permanent hires/conversions of young people carried out at locations or production units situated in the regions of Molise, Abruzzo, Puglia, Campania, Basilicata, Sicily, Calabria, and Sardinia);

2. The exemption (up to a maximum amount of 6,000 euros per year) provided for in Budget Law 178/2020 may be used for the hiring of disadvantaged female workers under the terms of Law 92/2012 on a permanent basis and for the conversion of fixed-term employment contracts into permanent ones (namely: women of any age who have been without regular paid employment for at least 24 months, regardless of where they reside; or women of any age who have been without regular paid employment for at least 6 months and reside in regions eligible for funding under the European Union’s Structural Funds and in areas identified annually by decree of the Minister of Labor and Social Policies (we attach herewith the latest decree issued addressing gender disparity); or the conversion to permanent contracts of fixed-term employment contracts entered into with women over 50 years of age who had been unemployed for at least 12 months);

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