Italy’s new under‑35 hiring bonus relies on employer self‑certification, offering up to €500 monthly for two years to convert temporary contracts into permanent posts
Executive summary: Italy’s National Social Security Institute (INPS) launched a subsidy under the Primo maggio decree that provides up to €500 per month for two years to employers who convert temporary contracts to permanent positions for workers under 35, with eligibility certified by employer self‑declaration; the programme is expected to involve about 16,200 workers. The initiative seeks to reduce youth labour market precariousness and encourage stable job creation, while imposing a fiscal cost on the state and potentially altering hiring decisions for firms.
Who is involved: Italian National Social Security Institute (INPS), Ministry of Labour, private employers, and workers aged under 35.
Likely next: INPS will monitor uptake and may introduce audit controls on self‑declarations by late 2026; policymakers could consider extending the scheme or adjusting the benefit level based on early results.
The INPS has activated the subsidy introduced by the Primo maggio decree, targeting workers aged under 35. Employers can self‑declare eligibility to receive the monthly benefit, which aims to stabilise youth employment. The measure covers an estimated 16,200 workers and represents a direct fiscal incentive for firms to shift from temporary to permanent contracts.
Timeline
- — Bonus under 35 solo col salario giusto. Ma per certificarlo basta l’autodichiarazione dell’azienda (la Repubblica — Economia)
Analysis — what this means
Likely next events
- INPS to release first uptake report by 30 September 2026.
- Government to review self‑certification fraud safeguards by 15 December 2026.
Sectors affected
- Temporary staffing agencies
- Youth employment programmes
- Italian manufacturing
Regulatory implications
- Ministry of Labour could set verification thresholds or require third‑party validation for larger firms.
Historical parallels
- Similar to the 2015 Jobs Act incentives that offered contribution relief for permanent hires.
- Mirrors the 2020 Cura Italia wage subsidy that provided €600 monthly for new hires under 30.
Key entities
Sources
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