The new recruitment bonus for young people under 35 in 2024 was introduced to encourage stable youth employment in Italy. This incentive, provided for by the Decree of May 1, 2024 (Cohesion Decree), offers a contribution exemption to employers who hire young people under 35 with an indefinite
contract.
Table of Contents:
What is the Under 35 Youth Recruitment Bonus
Definition and Objectives
The bonus consists of an exemption equal to 100% of social security contributions for employers who hire young people under 35 indefinitely or who transform fixed-term contracts into permanent contracts.
Amounts and Duration
The exemption can reach up to 500 euros per month for a maximum of 24 months, with an increase of up to 650 euros per month for recruitment in the regions of Southern Italy (Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia).
Reference Legislation
This incentive was established by Article 22 of Decree-Law No. 60 of 07-05-2024 (Decree of May 1, 2024 or Cohesion Decree) to promote youth employment.
Who is entitled to the bonus
Recipients
The bonus is aimed at private employers who hire non-executive personnel with an indefinite contract or transform fixed-term contracts into permanent contracts.
Requirements
To access the bonus, workers must:
- Be under 35 years old on the date of employment.
- Never having had an indefinite contract.
How does the Youth Recruitment Bonus work
Contribution Exemption
The bonus provides a total exemption from paying social security contributions for employers. Social security rates (IVS) are usually 33%, of which 23.81% are paid by the employer and 9.19% are paid by the worker
.
Limits and Rules
- Contributions for employee pension benefits and INAIL premiums are not included in the relief.
- The exemption does not apply to domestic work and apprenticeship contracts.
- The exemption is revoked if in the 6 months before or after hiring the employer makes dismissals for justified objective or collective reasons in the same production unit.
- It cannot be combined with other exemptions or reductions in financing rates provided for by current legislation.
Duration and Financing
Period of Validity
The bonus is valid from September 1, 2024 to December 31, 2025, with funds already allocated for the following years up to 2027.
Financing
The bonus is financed with funds from the National Youth, Women and Work Program 2021-2027:
- 34.4 million euros for 2024.
- 458.3 million euros for 2025.
- 682.5 million euros for 2026.
- 254.1 million euros for 2027.
Request for the Bonus
Procedure
The request methods have not yet been defined. The INPS will manage the procedures and the instances. The updates will be communicated as soon as they are available
.
Timelines
Implementation
The bonus should be operational by the end of 2024. The methods of implementation will be defined by a Decree of the Minister of Labor and Social Policies, in agreement with the Minister of Economy and Finance
.
The new recruitment bonus for young people under 35 in 2024 represents an important opportunity to promote youth employment in Italy. It is essential that interested employers stay up to date on how to apply and on the specific requirements to benefit from the incentive
.
