The contribution relief for solidarity contracts is a measure that reduces the employer’s social security contributions by 35% for each worker affected by a reduction in working hours of more than 20%. This incentive is linked to defensive solidarity contracts, which are accompanied by the Extraordinary Earnings Supplementation Fund (CIGS). The relief is valid for the duration of the contract, up to a maximum of 24 months
.
Table of Contents:
How does the solidarity contract work
The solidarity contract (CdS) is a wage integration tool that allows working hours to be reduced to maintain employment levels in the event of a business crisis. There are two types of solidarity contracts:
- Defensive solidarity contracts: aimed at avoiding layoffs, reducing working hours.
- Expansion contracts: aimed at reducing working hours to encourage new hires.
The contribution relief is available only for defensive solidarity contracts. The employer benefits from a 35% reduction in social security contributions for each worker with working hours reduced by more than 20%
.
How does the contribution relief on solidarity contracts work
The contribution relief applies to the part of the contribution due by the employer and to the salaries of the workers involved in the solidarity contract. The maximum period of use is 24 months within a mobile five-year period. Companies authorized to access the CIGS for solidarity contracts can apply this relief through adjustment operations, respecting the limits established by the Ministry of
Labor.
Contributions allowed for relief
The contribution reduction applies to the following contributions:
- Contributions paid for each employee involved in reducing working hours.
- Relate to the pay periods within the authorization period of the solidarity contract.
Contributions not eligible for relief
The following contributions are not subject to the contribution reduction:
- Contribution of 0.30% for continuing education (Article 25, paragraph 4, Law 845/1978).
- Solidarity contributions for supplementary pension and health care.
- Solidarity contribution for entertainment workers.
- Contributions to the Air Transport Solidarity Fund and the Fund for severance pay (severance pay).
Who is entitled to a tax exemption in 2024
The companies that can request the tax exemption are:
- Those who have signed a solidarity contract pursuant to Legislative Decree 148/2015.
- Companies that had a solidarity contract in progress in the second half of the previous year.
Companies must be in good standing with their social security contributions and comply with the economic provisions set out in collective employment agreements.
When to apply
Applications for tax relief can be submitted from November 30 to December 10, 2024. Interested companies must use the online application “sgravicdsonline” or the portal of the Ministry of Labor. Access to the platform requires authentication via SPID, CIE or CNS
.
Cumulability and incompatibility
The contribution relief for solidarity contracts cannot be combined with other contribution benefits. However, it is possible that it is compatible with the Southern Decontribution. Specific details will be clarified by the INPS
.
Recovery of relief from previous years
The INPS announced, with Message no. 2179 of 10 June 2024, the recovery methods for companies that did not benefit from the relief in 2019. Companies must make the adjustment by September 16, 2024
.
Demand Support
For assistance with your application, you can contact the Ministry of Labor at: [email protected].
Regulatory references
- Decree-Law 34/2014, converted with amendments by Law 78/2014.
The contribution relief for solidarity contracts represents an important support tool for companies in difficulty, offering significant savings on social security contributions. Companies that intend to request it must ensure that they comply with the established conditions and submit the application within the
established deadlines.
