The application of the NEET Incentive for hirings made by December 31, 2023, entails a series of verifications that the employer must undertake before reserving the entitled amount with INPS. ANPAL, in its communication of October 18, 2023, provides a set of preliminary guidelines regarding these verifications.
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NEET Incentive 2023: What Does it Encompass?
Hiring young NEET individuals by December 31, 2023, allows the employer to benefit from an incentive for a total duration of 12 months. This incentive consists of:
- 60% of the gross monthly taxable wage for pension purposes, paid to the employee.
- 20% of the gross monthly wage paid to the employee in cases of combining the incentive with other relief measures.
INPS further specifies that the reduction of the NEET Incentive to 20% of the gross monthly taxable wage, as mandated by the regulation in cases of combining with other exemption measures (see art. 27, paragraph 2, DL n. 48/2023), is applicable only when other measures provide a benefit to the employer initiating or having initiated the hiring.
Permissible Contractual Types
Hiring must be carried out through full-time or part-time contracts under the following contractual types:
- Open-ended contracts, including those for temporary agency work.
- Professionalizing apprenticeship contracts.
- Subordinate employment relationships established in accordance with the associative bond with a labor cooperative.
The following types are not eligible for incentives:
- The conversion of fixed-term contracts into open-ended contracts.
- Domestic employment relationships.
- Intermittent work.
Objective Requirements and ANPAL’s Suggested Checks
ANPAL emphasizes the need to pay attention to certain preliminary steps to verify that the young individual being hired:
- Has joined the Youth Guarantee program or has signed a Gol Service Pact, which includes a qualitative-quantitative assessment, at an employment center (no additional step at employment centers is required).
- Is under 30 years of age.
- Is not currently employed or enrolled in educational or training programs.
For individuals aged 25 to 29, at least one of the following requirements must also be met:
- Has not had regular paid employment for at least six months.
- Does not possess a high school diploma or a qualification or vocational training diploma.
- Has completed full-time training within the past two years and has not yet obtained their first regular paid job.
- Is employed in professions or sectors characterized by a gender pay gap exceeding 25% compared to the average gender pay gap across all economic sectors in the state.
Subjective Requirements and Application Procedure
In addition to meeting the objective requirements for hiring incentives, the legislation governing the incentive requires compliance with national, regional, territorial, or company-level collective agreements and contracts signed by the most representative employers’ and workers’ organizations at the national level.
Furthermore, the incentive can be legitimately utilized provided it results in a net increase in employment compared to the average number of workers employed in the twelve months prior.
To apply for the incentive, companies must follow the guidelines outlined in INPS Circular No. 68/2023. Applications should be submitted through the INPS portal using the NEET23 online application form, available from July 31, 2023. This form allows for reserving the funds allocated for the incentive, within the limits of availability.
Utilization
The incentive should typically be used for each month within the month following the performance of the employment. However, considering the December 31, 2023 deadline for incentivized hirings and the maximum 12-month duration of the incentive, it must be utilized, under penalty of forfeiture, by February 28, 2025.
Conclusions
ANPAL’s communication on October 18 highlights the importance of conducting the required verifications before proceeding with the reservation of funds at INPS. In cases where the above-listed requirements are not met, INPS may request the return of previously enjoyed benefits.
