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Dignity Decree: bonus for hiring under 35 until 2020

An amendment agreed by M5S and Lega plans to extend the "Gentiloni bonus" in the current version also to the next two years - There is also talk of the return of the higher cost to companies that stabilize workers, but the incentive is already in force

Dignity Decree: bonus for hiring under 35 until 2020

The companies they will hire permanent workers under 35 will benefit from the incentives currently in force – contribution discount of 50% with a ceiling of 3 thousand euros – also in 2019 and in 2020. This would be the main change to the Dignity Decree agreed between M5S and Lega to make the provision less indigestible for businesses and at the same time promote stable employment.

The bonus active today, in the version launched by the Gentiloni government, provides for the halving of contributions on the hiring of under 35s for this year only. From the next, the bar would drop to 30 years. The amendment to the dignity law intervenes precisely on this point, confirming the quota 35 also for 2019 and extending it to 2020.

It is not clear whether this corrective will be enough to appease the ongoing fight between the Minister of Labour, Luigi Di Maio, and the president of INPS, Tito Boeri, who predicted a net loss of 8 jobs a year due to the anti-precariousness package which forms the heart of the decree.

But, apparently, the parliamentarians could develop a further amendment precisely to sweeten those measures so unwelcome to INPS and Confindustria. As it is, the Dl the additional contribution increases by 0,5%. on each renewal starting from the second. The idea is of return the sum corresponding to this increase to the companies the cost of labor in the event that the contract is transformed from precarious to permanent.

There are however two problems. First, the numbers involved are so small which are unlikely to convince entrepreneurs to change their policy on contracts: at most we are talking about savings of 110-120 euros per year for each stabilized worker.

Second, this incentive is already in place. Since 2012. It was precisely the Fornero law, much reviled by the exponents of the current government, that introduced it. That reform provided for a 1,4% increase on fixed-term contracts, to which the 0,5% introduced with the Dignity Decree will be added. Except that the provision of the Monti government already provided for the repayment of the higher cost in case of stabilization of the contract.

The eligibility of about a thousand amendments presented to Dl Dignity will be evaluated on Monday. The next day the vote will begin in the commission and from Wednesday the decree will be in the Chamber. "We will put trust only if there is obstructionism", Di Maio said.

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