Employment in italy in 2016 costs less. Clarifications from the ministry of labour
It is often said that investments in Italy are discouraged by the excessive cost of labour. The new regulations seek to move in the direction of reducing the tax and contributions on income earned.
One of the most recent legislative changes in this regard was provided for in Article. 1, paragraph 178, of the 2016 Stability Law. It provides, in favour of private employers, for a maximum period of 24 months, the exemption from the payment of 40% of total social security contributions, to a maximum of the amount of exemption up to 3,250 euros on an annual basis in the case of new employment contracts with fixed-term employment contract of indefinite duration entered into during the period from 1st January 2016 to 31 December 2016.
The law also provides that the above is not for the foretold benefit of those workers for whom the contribution exemption has been enjoyed in relation to the previous permanent employment.
The Ministry has recently stated that it must be held that foreclosure is made only to the previous facilitated working relationship established with the same employer, including companies controlled by them or connected to it.
? exemption is available where
(1) the employer (or the subsidiary or associate) who (re) assumed in 2016 compared to a worker who has already enjoyed exemption under Law Stability 2015;
(2) in the sub (1) even if between the termination of the previous report and the new employment (in 2016) elapses by a period of six months.
? the responsibility exemption
(I) in the case of an unemployed worker for at least six months, and in which, the previous and separate employer, has taken advantage of the exemption contributory 2015;
(Ii) in the case of an unemployed worker for at least six months, and in which, the previous and separate employer, has taken advantage of the exemption contributory 2016.