Contribution facilities to promote employment in disadvantaged areas

News No. 8/2025

We draw your attention to two measures that provide contribution relief for employment in disadvantaged areas:

1) SUD SME Decontribution, provided by Budget Law 2025, Art. 1 paragraphs 406 et seq. and as guidance provided by Inps News No. 32/2025; (page 1 et seq.)

2) Bonus ZES, for permanent hires of over 35s who have been unemployed for at least 24 months, as per Decree Law No. 60/2024 Art. 24 (so-called "Cohesion Decree"), on the green light thanks to the publication of the February 21, 2025 Implementing Decree dated January 07, 2025. (page 8 and following)

SUD SME Decontribution

The Budget Law 2025 in Article 1, paragraph 406 et seq. provided for private employers, with the exclusion of the agricultural sector and domestic work contracts, an exemption from the payment of social security contributions, with the exclusion of premiums and contributions due to the National Institute for Insurance against Accidents at Work, limited to microenterprises and small and medium-sized enterprises that employ permanent workers in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria and Sardinia, in order to maintain employment growth levels in the Mezzogiorno and contribute to the reduction of territorial gaps.

The notion of microenterprises and small and medium-sized enterprises includes private employers who have no more than 250 employees, whose annual turnover does not exceed 50 million euros and/or whose annual balance sheet total does not exceed 43 million euros (according to Article 1 of Annex I of Commission Regulation (EU)2014/651 of June 17, 2014).

In this regard, it is recalled that in favor of employers carrying out business activities employing more than 250 employees, or exceeding the above-mentioned thresholds provided on annual turnover and/or budget, there is the different contribution exemption referred to in Article 1 paragraphs 413 et seq. of the Budget Law 2025, subject, however, to the prior authorization by the European Commission..

By express legal provision, employers who enter into apprenticeship contracts are excluded from the scope of this measure.

The exemption referred to in Paragraph 413 is granted on condition that the employer demonstrates, as of Dec. 31 of each year, an increase in employment, compared to the previous year, of permanent labor relations.

In a special circular dated Jan. 30, 2025, Inps provided guidance and operational instructions for the management of social security obligations related to the contribution exemption measure.

The benefit is available, only for permanent employment relationships already established as of December 31, 2024, provided that the place of employment is located in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia.

In cases where the employer, the holder of a company matriculation whose address coincides with the registered office located in regions outside the scope of application of the rule, has one or more operating units located in the above-mentioned regions of the South, it is necessary that the territorially competent Structure of INPS, following a specific request by the same employer concerned and after carrying out the necessary checks, insert in the contributory characteristics of the company's registration number the authorization code "0L", having the meaning of "Employer carrying out contributory centralization with operating units in the territories of the South of Italy", and which will be valid as of January 1, 2025 and with an end validity of December 31, 2029.

The exemption under discussion is recognized:

- For the year 2025, in an amount equal to 25 percent of total social security contributions, up to a maximum amount of 145 euros on a monthly basis for twelve months, for each permanent worker hired as of December 31, 2024;

- For the year 2026, in an amount equal to 20 percent of the total social security contributions for a maximum amount of 125 euros on a monthly basis for twelve months, for each permanent worker hired as of December 31, 2025;

- For the year 2027, in an amount equal to 20 percent of the total social security contributions for a maximum amount of 125 euros on a monthly basis for twelve months, for each permanent worker hired as of December 31, 2026;

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