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Italian employment and social security regulations

Overview

Italy has introduced several measures regarding employment and social security contributions. Under the Budget Law, the government offers hiring bonuses to private employers who convert fixed-term contracts into permanent roles. These incentives, available until December 31, 2026, target workers under 35 and mothers with dependent children. Companies can receive social security contribution relief of up to 500 euros per month per worker, increasing to 800 euros in Special Economic Zones (ZES).

To specifically boost female employment, the Ministry of Labour and Social Policies has re-funded the ‘Bonus Donne’ for 2026. Supported by a 141.5 million euro allocation co-financed by the European Social Fund Plus, this incentive provides private employers with a 100% exemption from social security contributions for permanent hires. Monthly savings can reach 650 euros, or 800 euros for hires in the Southern Italy ZES. This measure aims to address the national gender employment gap, where female participation is approximately 53% compared to 70% for men.

Regarding taxation for residents working abroad, the Agenzia delle Entrate clarified in response to inquiry n. 5/2026 that individuals maintaining fiscal residence in Italy while working continuously outside the country for their exclusive professional activity can deduct mandatory social security contributions. Following rulings from the Court of Cassation (17747/2024 and 9092/2025), this applies to those spending more than 183 days abroad within a 12-month period. Newer legislative measures have also been implemented to revise the corporate incentive system and promote work-life balance via Legislative Decree no. 138 of June 26, 2026.

Entities

Ministry of Labour and Social Policies · Italy · Sabrina Buoro · Investire SGR · European Union

Timeline

  1. [BUSINESS] 21 sources
    Italy implements 141.5 million euro incentive to boost female employment

    Italy is launching a 141.5 million euro incentive program in 2026 to boost female employment and addressing gender gaps in healthcare leadership and professional management roles.

  2. [BUSINESS] 2 sources
    Italy introduces new business incentives and work-life balance tax relief

    Italy introduces new business incentives and social security relief of up to 50,000 euros for companies implementing certified work-life balance and family-friendly policies.

  3. [BUSINESS] 3 sources
    Italy allows tax deductions for foreign social security contributions

    Italian tax residents working abroad for more than 183 days can now deduct mandatory foreign social security contributions from their taxes, according to the Agenzia delle Entrate.

  4. [BUSINESS] 2 sources
    Italy offers hiring bonuses for permanent employment

    Italy is offering hiring bonuses to encourage permanent employment. Employers can receive social security exemptions of up to 500 euros monthly for under-35s and mothers, or up to 800 euros in ZES areas.

Sources

ameve.eu · blitzquotidiano.it · buonenotizie.it · cagliarilivetv.it · corcianonline.it · egnews.it · epochtimes.it · federlazio.it · forchecaudine.it · iltempo.it · informazionequotidiana.it · inliberta.it · ioarch.it · lacronaca24.it · laragione.eu · lecodellitorale.it · mantovauno.it · mediapress24.it · money.it · notizie.it · notiziedi.it · quibrescia.it · redazionenews.it · sardegnalive.net · stranotizie.it · trapanisi.it · vetrinatv.it · wltv.it

This summary has been updated 3 times: see revision history