Recruitment, young and Mezzogiorno bonuses are reduced
The relief for companies hiring under-35s increases from 100% to 70% of contributions until April. Then the 50% aid remains
The incentives for hiring young people (all over Italy) and unemployed people over 35 special economic zone for the Mezzogiorno are thinned out compared to the 'robust' version envisaged by the Cohesion Decree, but gain four months' duration, compared to the original deadline of 31 December 2025. The 100% contribution bonus for hiring disadvantaged women is extended by one year, without being reduced. This is the result of the conversion into law of the Milleproroghe decree (Dl 200/2025), which took place last week.
To refinance the incentives, the government will use in part European and state resources from the National Youth, Women and Work Programme 2021-2027, and in part the funds allocated by the Budget Law 2026 to facilitate employment. In particular, half (417.6 million) of the 825 million earmarked for partial contribution exemptions for employers who hire will be used.
It remains to be seen, also based on the utilisation of the measures, how much room there will be to further extend the bonuses during the course of the year, as called for by Labour Minister Maria Elvira Calderone during the Welfare & Hr Summit 2026 organised by Il Sole 24 Ore.
Young people under 35
The tax exemption for hiringindefinite-term workers or for stabilising young people under 35 who have never been employed on an indefinite-term basis, provided by Decree Law 60/2024, will be available to private employers until 30 April 2026. In the first nine months of last year, the bonus was used for 105,855 relationships.
For hirings made between 1 January and 30 April 2026 the aid will be equal to 70 per cent of the contributions borne by the company, for two years, and no longer 100 per cent, as envisaged until December 2025. If, however, the hiring results in a net increase in employment, i.e. a positive balance between the number of workers employed in the month of hiring and the average number of workers employed in the previous 12 months, the incentive can cover 100% of the contributions due.
