INPS launches €500‑per‑month contribution exemption to stabilize young workers

The INPS has issued operational guidelines for a new contribution exemption aimed at encouraging private employers to convert temporary contracts into permanent ones for workers under 35 who have never held a permanent job. The measure exempts 100 % of the employer’s social security contributions, excluding INAIL premiums, up to a maximum of €500 per month per employee for a period of up to 24 months.

Eligibility requires that the original term contract be concluded by 30 April 2026, with a total duration of no more than 12 months, and the transformation to an indefinite contract must occur without interruption between 1 August and 31 December 2026. Eligible employees must be aged 34 years 364 days or younger at the time of conversion and must not have previously held a permanent position. The exemption applies to private firms, including agricultural employers, but excludes public administrations, domestic workers, apprenticeships, and managerial staff.

Employers must apply online through the INPS “Portale delle agevolazioni” using the dedicated form. The programme is funded with a ceiling of €18.2 million for 2026, with monitoring to stop acceptance if the limit is reached.