A New Year and new laws are awaiting employers in Italy.
Many are aimed at providing incentives to businesses in order to stimulate local labour markets while others may add additional red tape to already complex human resource management programs.
This article is part of ELLINT ‘s January newsletter which provides employers with a snapshot what they need to know about new regulations which may impact their human resource management and strategies over the next 12 months around Europe.
NEED TO KNOW: NEW EMPLOYMENT & LABOUR LAWS IN ITALY 2017.
The Italian government is looking to create more space for young workers by providing incentives for older workers to leave the workforce earlier. The current retirement age in Italy is 66 years and 7 months for those who have contributed to the pension system for at least 20 years.
The recent Stability Law will allow those who have 63 years of age, and who have contributed to the Italian pension system for at least 20 years, to leave work instead 3 years and 7 months before their official retirement age and receive a ‘bridge salary’ (reddito ponte) from the government up until their official old age pension would take over.
However, employers should note that female employees who have reached 57 years of age, and have contributed to the Italian national pension system for 35 years as of December 31st, 2015, will also be entitled to take early retirement under similar conditions as to those above.
Always seeking ways to stimulate the labour market and youth employment the Italian government has introduced a financial incentive from January 1st (up until December 31st, 2019) for businesses to hire new employees and apprentices for permanent work roles.
The incentive is in the form of waiving €3,250 of social security contributions for a period of up to 36 months.
For employers hiring in Southern Italy the incentives become even greater with €8,060 of waived social security contributions for 12 months. for taking new employees and apprentices on work-study programs.
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