Incentives for Hiring 2023

The Law No. 85 of July 3, 2023, conversion of Decree Law No. 48/2023 (known as the “Job Decree”), was published in the Official Gazette No. 153 on July 3, 2023. This law introduces “Urgent Measures for Social Inclusion and Access to the Job Market.” The provisions of Law No. 85/2023 are effective from July 4, 2023, with specific starting dates for some provisions.

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Incentive for hiring recipients of inclusion allowance

Starting from January 1, 2024, the inclusion allowance will be recognized as a measure of economic support and social and professional inclusion, subject to meeting residency, citizenship, and residence requirements, means testing based on ISEE (Equivalent Economic Situation Indicator), the income situation of the recipient and their family unit, and adherence to a personalized path of activation and social and work inclusion.

The inclusion allowance will be provided to family units where at least one member falls into one of the following conditions:

  • With disabilities;
  • Minors;
  • Aged at least 60 years;
  • In a disadvantaged condition and participating in a care and assistance program by territorial social and health services certified by the public administration.

Family units with a member who, within 12 months following voluntary resignation, is unemployed due to voluntary resignations (except for just cause) or consensual terminations of the employment contract through conciliation procedures under Article 7 of Law No. 604 of July 15, 1966, are not eligible for the Inclusion Allowance.

According to Article 10 of Decree Law 48/2023, private employers hiring beneficiaries of the inclusion allowance can benefit from a contribution exemption, as follows:

  • 100% for permanent contracts
  • 100% for apprenticeships
  • 50% for fixed-term contracts

Incentive for hiring young workers 

As per Article 27 of Decree Law 48/2023, private employers are entitled to an incentive for hiring young workers from June 1, 2023, until December 31, 2023, falling into the following categories:

  • Aged less than 30 at the time of hiring;
  • Not engaged in employment or enrolled in study or training courses (“NEET”);
  • Registered in the national operational program “Youth Employment Initiative.”

The incentive is applicable to both permanent contracts and apprenticeships and amounts to 60% of the gross taxable monthly salary for a duration of 12 months. The incentive will be paid to the employer after submitting the relevant application to the National Social Security Institute (INPS). It is important to note that this incentive can be combined with other exemptions or reductions in financing rates provided by current regulations within the applicable period.

Incentive for empoyment of persons with disabilities

Article 28 of Decree Law 48/2023 established a fund aimed at providing a contribution for each person with a disability under 35 years of age, employed according to Law No. 68/99, in favor of:

  • Third-sector entities
  • Volunteer organizations and social promotion associations
  • Non-profit social utility organizations

The contribution applies to the hiring of disabled workers, even if exceeding the minimum mandatory quotas established by Law No. 68/1999, provided that the hiring is carried out in compliance with the procedures laid down by the aforementioned law.

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