Employers in Italy can benefit from a number of schemes aimed at the sustainable inclusion of young people in the employment market.

Employers in Italy can benefit from a number of schemes aimed at the sustainable inclusion of young people in the employment market as well as at supporting employment in the “less-developed” regions. While youth unemployment reportedly declined in the country to 37.9% in January from 39.2%, the rate remains among the highest in the Eurozone.

Young people the Italian government wishes to engage with this scheme are unemployed, and not enrolled in a formal course of study.

There are two incentive streams for employers to consider.

Incentive for Mezzogiorno hiring

Ministry of Labour Decree no. 367 of 16 November 2016 established the "South employment incentive" for employers with registered offices in the "less-developed" regions of the Mezzogiorno (Basilicata, Calabria, Apulia and Sicily) and "in-transition" regions (Abruzzo, Molise and Sardinia) between 1 January 2017 and 31 December 2017.

The incentive corresponds to the social security amount due by the employer, with exclusion of the sums to be paid to INAIL, up to a maximum amount of €8,060 per year per employee.

Eligibility

Employers qualify for this incentive where they hire young, unemployed people between 15 and 24 years of age, or workers of at least 25 years of age who have been unemployed for at least six months, pursuant to the 20 March 2013 Ministry of Labour Decree.

Incentive for hiring young people

The Ministry of Labour's Directorial Decree no. 394 of 2 December 2016 applies nationwide and includes the implementation of a guarantee for young people. Italy will ensure to young people under 30 years of age a qualified job offer, the continuation of their study, an apprenticeship or an internship, within four months of the start of their unemployment, or from the end of their mandatory education period.

The decree provides incentives for employers who hire young people between 16 and 29 years of age between 1 January 2017 and 31 December 2017. If minors, these young people have discharged the requirements for education and instruction. They are not enrolled in a formal course of study and are unemployed.

The incentive corresponds to the total amount due by the employer as social security contributions, with exclusion of the sums to be paid to INAIL, up to a maximum amount of €8,060 per year per employee in case the employee is hired with an open-ended contract or with an apprenticeship. For employees hired on a fixed-term contract, the incentive corresponds to 50% of the total security contributions due by the employer. For part-time contracts, the incentive is decreased proportionally.