Mezzogiorno, Zes bonus and decontribution to boost employment

Let's talk about the Mezzogiorno. The government's objective is to continue to increase hiring in the southern regions, after the encouraging figures recorded in recent months. One lever is certainly that linked to incentives. And in particular two measures, one just started, the other expiring in December (and awaiting review, as announced by the government).

The first brand new measure is called bonus Zes, the Special Economic Zone of Southern Italy. The measure was introduced with the Cohesion Decree, and it works as follows. For each employee hired on an indefinite-term basis from 1 September 2024 until 31 December 2025, 100% exemption for a maximum of 24 months from the payment of social security contributions owed by the private employer up to a limit of EUR 650 on a monthly basis (excluding Inail premiums and contributions).

The relief is only available to private employers employing up to 10 employees in the month of recruitment. The employee must be at least 35 years old, have been unemployed for at least 24 months, and be employed at an office or production unit in the SEZ of the South. The bonus Zes also does not apply to domestic work and apprenticeships. The number of new hirings of workers over 35 estimated by the technical report is 40,000.

The second measure is the South decontribution that the Meloni government has extended until 31 December, but only for contracts signed by 30 June 2024. In the first four months of the year, about 500,000 new contracts took advantage of this incentive. The exemption is for companies operating in the South, Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily. Until 31 December 2025, the exemption is 30% of the contribution. However, the measure is being examined by the government, which has stated that it wants to rework the South decontribution.