From September 1, 2024, the new Youth Under 35 Recruitment Bonus comes into force, a measure aimed at promoting stable youth employment throughout Italy. Introduced by the Cohesion Decree, this incentive offers a contribution relief to employers who hire young people with permanent contracts. This guide will provide you with all the necessary information on how the bonus works, who is entitled to it and how to claim
it.
Table of Contents:
What is the 2024 Under 35 Youth Recruitment Bonus
The Youth Under 35 Recruitment Bonus consists of an exemption of 100% of employers’ social security contributions. This incentive is valid for permanent hires made from September 1, 2024 to December 31, 2025. The relief is applicable up to a maximum of 500 euros per month, for a period of 24 months, and can reach up to 650 euros per month if the recruitment takes place in the regions of Southern Italy, such as Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria
and Sardinia.
Who is entitled to the New Under 35 Recruitment Bonus
The bonus is reserved for private employers who hire young people with an indefinite contract or transform a fixed-term contract into an indefinite one. Young people must meet the following requirements:
- Not being 35 years old at the time of employment.
- Never having had an indefinite employment contract.
How the New Youth Hiring Bonus Works
The bonus works through a total exemption from paying social security contributions, with some exceptions and limitations. For example, it does not include employee pension contributions or INAIL premiums and contributions. In addition, the exemption does not apply to domestic work contracts and apprenticeship contracts, unless these are transformed into permanent
contracts.
Duration and Conditions of the Incentive
The incentive is operational from September 1, 2024 to December 31, 2025. However, funds have been allocated to extend the bonus also to the years 2026 and 2027. It is important to note that the effectiveness of the measure is subject to authorization from the European Commission
.
How to Claim the Bonus
At the moment, the methods for claiming the bonus have not yet been specified. The INPS will manage the procedures and provide the necessary instructions. Once the Implementing Decree is published and the guidelines defined, detailed updates will be provided on how
to proceed.
Next Steps and Implementation
The methods for implementing the bonus will be defined by a Decree of the Minister of Labor and Social Policies, in agreement with the Minister of Economy and Finance. This process will ensure that the provisions are consistent with the 2021-2027 Partnership Agreement and with the objectives of the National Youth, Women and Work Program
.
Available Financial Resources
The Government has allocated a significant amount to finance the bonus:
- 34.4 million euros for 2024
- 458.3 million euros for 2025
- 682.5 million euros for 2026
- 254.1 million euros for 2027
These funds will be taken from the National Youth, Women and Work Program 2021-2027.
The new Youth Under 35 Recruitment Bonus represents a significant opportunity for employers who intend to invest in young talent, while at the same time helping to reduce youth unemployment in Italy. With the detailed information in this guide, employers can prepare to make the most of this opportunity as soon as the application procedures are defined
.
