Italy: Contribution Exemptions for Hiring Women

April 12, 2021
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The 2021 Budget Law 92/2012 established that, if an employer hires female employees during 2021 and 2022, a 100% contribution exemption -up to a maximum of €6,000 per year- is provided.

This exemption is subject to a net increase in employment, calculated based on the difference between the number of employees recorded each month and the average number of employees during the previous 12 months. For part-time employees, the calculation is weighted based on the ratio between the agreed hours and normal full-time working hours.

A decrease in the number of employees in subsidiaries or associated companies must not, according to Article 2359 of the Civil Code, be considered, including in the case of association of the same entity through a third party.

The benefit is granted under the Temporary Framework and is subject to authorization by the European Commission.

Who can avail of this benefit?

All private employers, including non-entrepreneurial employers and employers in the agricultural sector are eligible.

While the exemption does not apply in the case of Public Administration bodies, it does apply for public economic entities and autonomous social housing institutes transformed, according to the various regional laws, into public economic entities.

What female employees are eligible for the exemption?

The exemption is related to the hiring of disadvantaged women who fall into these categories:

  • Women of at least 50 years of age and were unemployed for over 12 months
  • Women of any age residing in regions eligible for funding under EU Structural Funds (areas identified by the 2014-2020 Regional Aid Charter, approved by the European Commission on 16th September 2014 and subsequently amended by Commission C (2016) Final of 23rd September 2016) who were without regularly paid employment for at least 6 months. No time constraints exist regarding the permanence of residence requirements in disadvantaged areas, and the employment relationship may also take place outside of the areas indicated.
  • Women of any age who carry out professions or working activities in economic sectors characterized by a marked gender employment inequality. The unemployed woman must be hired either in a sector or in a profession included in the list outlined in the Decree and without regularly paid employment for a period of at least 6 months.
  • Women of any age, resident in any region, and without regular paid employment for at least 24 months. It is necessary to consider the period of 24 months before the hiring date and verify that in that period, the employee has not carried out any subordinate employment activities relating to a contract of at least 6 months, a Co.Co. Co. contract or any other working activity as outlined by Article 50, Paragraph 1, letter c-bis, TUIR; does not have an annual remuneration exceeding €8,145 or self-employment activity such as to produce a gross annual income exceeding €4,800 and is, therefore, either in a state of long-term unemployment of more than 12 months or complies, in conjunction with further provisions, with the definition of “unemployed.”
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