Italy rolls out INPS youth employment bonus with up to €500 monthly exemption

The Italian Institute of Social Security (INPS) issued operational guidelines for a new incentive aimed at private employers who convert fixed‑term contracts into permanent ones for workers under 35 who have never held a stable job. The measure, part of the 2026 Labour Decree, grants a 100 % contribution exemption of up to €500 per month per employee for a maximum of 24 months. Eligible conversions must occur between 1 August and 31 December 2026, with the original temporary contract having started by 30 April 2026, lasting no longer than twelve months and remaining uninterrupted.

The exemption applies only to private sector firms, including agriculture, and excludes public administrations, domestic work, apprenticeships, intermittent or on‑call contracts, and managerial staff. Employers must meet a set of conditions such as a certified contribution regularity (Durc), compliance with labour and safety regulations, adherence to collective agreements, and a net increase in employment compared to the previous twelve months. The benefit cannot be combined with other contribution incentives, though it aligns with certain tax deductions introduced in the 2025 Budget. Applications will be submitted electronically through the INPS “Agevolazioni” portal once the online form becomes available.