Last December 30, 2019, Law No. 160 of December 27, 2019 (the so-called "Budget Law 2020") was published and came into effect on January 1, 2020. Below are the provisions that we believe are of most interest.
Fund for reducing the tax burden on employees
(Article 1, paragraph 7)
In order to reduce the tax burden on individuals, a fund called the "Fund for Reducing the Tax Burden on Employees" is established in the MEF's budget statement, with an endowment, the amount of which will be
3 billion by 2020;
5 billion by 2021.
Interventions aimed at the above reduction will be implemented by future appropriate regulatory measures, within the limits of allocated resources.
Incentives for hiring entry-level (or dual) apprentices.
(Article 1, paragraph 8)
For first-level apprenticeship contracts for vocational qualification and diploma, upper secondary education diploma and higher technical specialization certificate, if:
stipulated during the year 2020
By employers who employ 9 (nine) or fewer employees in their workforce
is granted, in order to promote youth employment, 100% contribution relief, limited to the first three years of the contract.
For apprenticeship periods after the third one, the 10 percent rate remains unchanged.
Revision of Inail rates