Reducing costs for permanent contracts. Various provisions in the 2015 stability draft law, approved by the Council of Ministers on 15 October, but is only now being published, prepares the groundwork for the approval of the Jobs Act, the Italian Prime Minister’s significant labor market reform, currently being examined by the Chamber of Deputies (see article n°8642). In order to boost permanent recruitment in the private sector, for permanent staff hired between 1 January and 31 December 2015, employers will be exempt, for a period of 3 years following the date of recruitment, from paying social security contributions (excluding certain varieties, such as contributions to the National Institute for Insurance against Accidents at Work, INAIL).
Italy: labor measures featured in the 2015 stability draft law, proposed by Renzi’s government
The 2015 stability draft law, approved by the Italian Council of Ministers on 15 October, contains two main labor measures. The first is a significant reduction in social security contributions for new recruitment on permanent contracts, in order to make hiring on a permanent basis a more financially attractive prospect. The second is the opportunity for workers to claim, on a monthly basis, their TFR (Trattamento di fine rapporto), a deferred part of the salary paid with interests when the person leaves the company.
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