As of January 2016, employers are entitled to a reduction of 40% of the social security contributions for new employees if the following conditions are met:
- The new employee is hired on an open-ended employment contract;
- The new employee is hired between January 2016 and December 2016;
- The new employee was not hired elsewhere on a permanent contract in the six months prior to the new hiring.
Although the amount of the exemption was reduced compared to 2015, it still represents an incentive for employers who can save up to €3,250 per year per employee.
Further the conventional salary for Italian employees working abroad is now to be taken into consideration for the payment of social security contributions.