A’tax relief comes for businesses and professionals who decide to assume permanent staff. With the new implementing decree of the Ministry of Economy and Labour, a maxi-deduction of labor costs which can reach 130% in the case of hiring workers belonging to the so-called “fragile categories”.
The maxi-discount of 120% it is instead valid for those who hire indefinitely. This is a decree that also opens up opportunities for workers. In fact, the measure not only encourages theincrease in employment stable, but also favors the inclusion of vulnerable workers, contributing to a fairer and more sustainable labor market.
The decree for hiring has been published: the 120 superbonus is coming
The implementing decree, published on the website of the Ministry of Finance and signed by the Minister of Economy Giancarlo Giorgetti in concert with the Minister of Labor and Social Policies Marina Calderone, makes the maxi tax deduction envisaged by the Irpef reform at the beginning of the year (Legislative Decree 30 December 2023, n. 216).
This provision, known as “superbonus 120%“, is aimed at holders of business income and practitioners of arts and professions for the tax period following the one in progress on 31 December 2023.
The decree provides for a deduction of labor costs for new hires indefinitely equal to 120%. As specified in the decree: “The cost of personnel to be hired for the purposes of the benefit is increased, for the purposes of determining income, by an amount equal to 20 percent”. This means that the cost of labor is tax deductible increased by 20% compared to normal.
Hiring “fragile workers”: benefit increased by up to 130%
For the hiring of workers belonging to deserving categories greater protectiona further 10% increase is expected, bringing the total to 130%.
Categories include disabled people (i.e. the well-known protected category), women with at least two children and young eligible for employment incentives. The decree specifies that “the cost is increased by a further 10 percent in relation to new permanent hires of employees included in each of the categories deserving of greater protection”.
How to get a 120% maxi-discount: the requirements
The increase in labor costs, as stated in the decree, is applicable only if the work contract permanent employee is in place at the end of the tax period following the one in progress on 31 December 2023 and if the number of permanent employees at the end of that period is greater than the number of permanent employees on average employed in the previous tax period. In other words, the relief is triggered only if a increase in employment year on year.
However, not all companies can benefit from the superbonus 120. They are excluded:
- companies in ordinary liquidation
- companies subject to judicial liquidation or other liquidation institutions relating to the business crisis, starting from the beginning of the procedure.
Attention: the deduction will be triggered for all signed permanent hires from 1 September 2024 until 31 December 2025.
