Until October 15, 2024, it is possible to request the contribution exemption for gender equality. This is a 1% reduction on social security contributions, up to a maximum of 50,000 euros per year, intended for private employers who have obtained the gender equality certification by 31 December 2023
.
In this guide, we will see in detail what the contribution exemption for gender equality is, how it works, who can request it and what are the requirements to access this benefit.
What is the Gender Equality Tax Exemption
The gender equality contribution exemption is a benefit that consists of a 1% reduction on social security contributions due by the employer, with a maximum ceiling of 50,000 euros per year. It is intended for companies that have obtained gender equality certification by December 31, 2023. The certification attests to the company’s commitment to reducing gender disparities, promoting equal pay and opportunities between men and women
.
The benefit is governed by the Interministerial Decree of 20 October 2022 and is managed by the INPS, in collaboration with the Ministry of Labor and other bodies.
Who Is Eligible for Exemption
Private sector employers, including economic public bodies and special companies, who have obtained the certification of gender equality, can benefit from the contribution exemption. Among the admitted subjects are:
- Private companies, even non-entrepreneurial ones;
- Economic public bodies and autonomous public housing institutions;
- Companies that, following privatization processes, have become limited companies;
- Former IPAB transformed into private law associations or foundations.
Public employers and entities that do not fall into the categories indicated are excluded from the benefit. Furthermore, the exemption does not concern contributions due to INAIL or other specific non-social security funds
.
When and How to Request a Waiver
To apply for tax exemption, companies that obtained gender equality certification by December 31, 2023, must apply by October 15, 2024. The deadline has been extended from the initial date of April 30
, 2024.
The application must be submitted to the INPS through the online form ‘PAR_GEN’, available in the ‘Facilitations Portal’ on the INPS website. To access the portal, you must authenticate with your CNS, SPID or CIE credentials
.
In the case of errors in filling out the application, the INPS has provided the possibility of correcting the information entered within the deadline.
How Contribution Relief Works
The contribution relief is equal to 1% of the employer’s social security contributions, with a maximum limit of 50,000 euros per year, adjusted on a monthly basis. The exemption is valid for the months of effective certification of gender equality. The INPS will grant the exemption only in case of regular company contributions and in the absence of suspensive measures by
the Labor Inspectorate.
The employer can verify the status of the application and the actual exemption through the INPS “Facilitations Portal”. Instead, the worker can verify the application of the relief by consulting the paycheck
.
Contributions Excluded from the Exemption
The INPS has clarified that the contribution relief applies exclusively to social security contributions paid by the employer. The following contributions are excluded from the exemption
:
- Prizes and contributions due to INAIL;
- Contributions to the severance pay fund and other special funds;
- Contributions to intersectoral and territorial solidarity funds.
The exemption therefore does not apply to contributions that are not strictly social security.
How much is the relief
The contribution exemption can reach a maximum of 50,000 euros per year, adjusted on a monthly basis, equal to a maximum of 4,166.66 euros per month. The relief can be combined with other contribution benefits, except for specific prohibitions
provided for by other benefits.
Furthermore, the exemption is not part of the state aid regulated by the Treaty on the Functioning of the European Union.
Controls and Penalties
Applications for the exemption will be subject to verification by the INPS. If a company has unduly benefited from the exemption, it will have to return the unpaid contributions and will be subject to the penalties provided for by law. In case of revocation of the gender equality certification, the company is obliged to promptly notify the INPS.
The 2024 gender equality contribution exemption represents an important incentive for companies that promote gender equality. Remember to submit your application by October 15, 2024 and to follow the instructions of the INPS to obtain the relief on contributions
.