INPS has published the instructions on the 2017 Youth Guarantee program and on the new recruitment bonus for the South, explaining how the two benefits can be exploited. Be careful not to get confused, because these are two similar but distinct measures.
YOUTH GUARANTEE 2017
Let's start with the Youth Guarantee 2017, the new hiring incentive valid throughout the national territory (only the Autonomous Province of Bolzano is excluded) and aimed at improving the employment levels of young people aged 16 to 29 who are not enrolled in a study program or training.
The incentive, for which 200 million euros have been allocated, can be used by all private employers who hire young people registered in the "National Operational Program Youth Employment Initiative” (in short, “Youth Guarantee Programme”).
Young people between the ages of 16 and 29, the so-called NEETs (English acronym for “Not [engaged in] education, employment or training”), i.e. those who neither study nor work, can register for the Programme. Interested parties must declare their immediate willingness to work and participate in the active employment policy measures agreed with the employment center to the unitary information system of employment policies.
The 2017 Youth Guarantee subsidy is available for fixed-term contracts of at least six months and for permanent contracts, including professional apprenticeship relationships. It is collected in 12 monthly installments starting from the date of employment of the worker and concerns:
– 50% of the social security contributions paid by the employers up to a maximum of 4.030 euros per year for each worker hired with a fixed-term contract (including extensions);
– the social security contribution paid by the employers to the maximum extent of 8.060 euros per year for each worker hired with a permanent contract.
A special procedure is envisaged for the presentation of the application. The employer must send INPS a preliminary application for admission to the Youth Guarantee 2017 through the online form "OCC.GIOV.", which will be published on the INPS website within the "DiResCo – Statement of Responsibility of the Taxpayer”. The following data must be indicated in the form:
– the personal details of the worker hired or who intends to hire;
– the Region and the Province of execution of the work performance;
– the amount of expected or actual average monthly salary;
– the employer contribution rate.
Once the authorization has been obtained electronically, employers will be able to benefit from the subsidy via adjustment starting from April 2017. There is the possibility of recovering the incentive shares relating to the months preceding the publication of the circular and the full operation of the telematic procedures.
Read the Inps circular on Youth Guarantee.
RECRUITMENT BONUS FOR THE SOUTH
The situation is very different for hiring incentives in Southern Italy, which - unlike the 2017 Youth Guarantee - does not include age limits, but geographical ones. The bonus is intended only for some regions: Basilicata, Calabria, Campania, Puglia, Sicily, Abruzzo, Molise and Sardinia.
The incentive concerns the hiring of unemployed people who declare to the single information system of employment policies that they are immediately available to work and participate in active employment policy measures agreed with the employment centre.
The subsidy can be requested for recruitments carried out between 1 January 2017 and 31 December 2017 within the limits of the allocated resources, which for Basilicata, Calabria, Campania, Puglia and Sicily amount to 500 million euros, while for Abruzzo, Molise and Sardinia do not exceed 30 million euros. The reason? The first four regions are considered "less developed", while the last three are defined as "in transition".
The recruitment bonus in the South can only be used for permanent contracts, including apprenticeship relationships.
The bonus can be used in 12 monthly installments from the date of hiring/transformation of the worker and concerns only the social security contributions paid by the employer up to a maximum of 8.060 euros per year for each worker hired.
As for the procedure, the employer must send INPS a preliminary application for admission to the incentive using the "B.SUD" online application form, which will be made available on the INPS website by mid-March in the application "DiResCo – Statement of Responsibility of the Taxpayer”. The request must contain the following data:
– the personal details of the worker hired or who intends to hire;
– the Region and the Province of execution of the work performance;
– the amount of expected or actual average monthly salary;
– the employer contribution rate.
After obtaining the authorisation, the employers will collect the hiring bonus through an adjustment starting from April 2017 and, possibly, will be able to recover the incentive shares relating to the months preceding the publication of the INPS circular and the full operation of the telematic procedures.
Read the INPS circular on the hiring bonus for the South.
