Contribution relief for solidarity contracts: complete guide

The contribution relief for solidarity contracts is a measure designed to facilitate companies that adopt such contracts. This benefit allows for a 35% reduction in contributions due for each worker involved in reducing working hours by more than 20%. In this detailed guide, we explain who is entitled to it, how it works and how the contribution relief applies to solidarity contracts for 2024

What is the contribution relief on solidarity contracts

The contribution relief is an incentive that accompanies defensive solidarity contracts connected to extraordinary layoffs (CIGS). The contribution reduction is equal to 35% of the employer’s contribution to the salaries of workers affected by the reduction in working hours of more than 20%. The relief is valid for the entire duration of the solidarity contract, up to a maximum of 24 months

How solidarity contracts work

Solidarity contracts (CDs) are agreements between a company and trade unions that provide for the reduction of working hours to protect employment and avoid layoffs. There are two types of solidarity contracts:

  • Defensive solidarity contracts: they reduce working hours to maintain employment during a business crisis.
  • Expansion contracts: they reduce working hours to encourage new hires.

For defensive solidarity contracts, there is a reduction of 35% of the employer’s contribution.

Who is entitled to tax relief in 2024

The companies that can benefit from the tax relief in 2024 are those that:

  • have signed a solidarity contract pursuant to Legislative Decree no. 148 of 14 September 2015.
  • they had an ongoing solidarity contract in the second half of the previous year.

Companies must be in good standing with the payment of contributions and respect collective agreements.

How does the contribution relief work

The contribution relief is recognized on the employer’s contribution for workers with a reduction in working hours of more than 20%. The reduction is 35% of the contribution due and is valid for a maximum period of 24 months in the mobile five-year period. The INPS will provide details on how to adjust CIGS’s performance and on the verification of
the amounts due.

Contributions allowed for relief

The contribution reduction applies to contributions paid for each employee affected by the reduction in working hours, for each pay period included in the authorized time frame. Employers are entitled to a 35% reduction on the part of their contributions for each worker who, in that month, has a reduced schedule of more than 20%

Contributions not eligible for relief

The following are not included in the contribution relief:

  • the contribution of 0.30% for vocational training
  • the solidarity contribution on payments allocated to supplementary pension or health care funds
  • The solidarity contribution for entertainment workers
  • the contribution to the ‘Air Transport Solidarity Fund’ and to the ‘Fund for the provision of severance treatments’

Cumulability and incompatibility

The contribution relief for solidarity contracts is incompatible with any other contribution benefit provided for by the law. However, the benefit could be cumulated with the Southern Decontribution, depending on future indications from the INPS

When to apply

The procedures and deadlines for submitting applications for the 2024 tax relief have not yet been clarified by the INPS. We will update as soon as new information becomes available

How to get a contribution relief

The procedure for obtaining the contribution relief must be initiated by the employer. Requests are made through the “sgravicdsonline” web application, accessible with SPID, CIE or CNS. The payment of stamp duty must be made through the “PagoPA” system

Recovery of relief from previous years

The INPS has specified how to recover the remaining resources for the relief relating to 2019 for companies benefiting from the CDs. Adjustment operations must be carried out by September 16, 2024

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