Italy Update: Innovations introduced by the so-called “Labour Decree”

Decree Law, 4 May 2023, n. 48

The decree law approved last May 103 by the Government, with “Urgent measures for social inclusion and access to the world of work”, was published in the Official Gazette no. 4 of 2023 May 1.

The main innovations contained in it are noteworthy.

Fringe benefits

The threshold of IRPEF-exempt fringe benefits (including sums paid for payment of domestic utilities) has been raised for the entire 2023 tax year.

This has been increased to 3,000 euros but only for employees who have dependent children. For all others, the previous rules will continue to apply.

Omitted contributions and rescheduling of contribution debts

Starting from 2023 it will be possible to increase the installments for the payment of contribution debts, which goes from the current 24 to 60 months. In addition, there will be a reduction in administrative penalties for failure to pay social security withholding taxes. These can no longer be remodulated “from € 10,000 to € 50,000” but “from one and a half to four times the amount omitted”.

Fixed-term

If the employment contract is more than 12 months and up to 24 months, the possibility of recruitment is provided where:

– the reason is provided for by the CCNL
– the reason is dictated by the organizational economic needs of the companies and

– absent workers must be replaced.

Relief for new hires

The following recruitment incentives are introduced for:

– Institutions and organizations: a contribution for each person with disabilities hired on a permanent basis between 1 August 2022 and 31 December 2023

– employers who hire inclusion allowance recipients: 100% contribution exemption for 12 months

– employers hiring young NEETs under 30 enrolled in the Youth Employment Incentive program: contribution of 60% of salary for 12 months, combinable with other measures in force.

By Quorum, Italy, a Transatlantic Law International Affiliated Firm.

For further information or for any assistance please contact italy@transatlanticlaw.com

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