INPS instructions for use

After a long wait, employers can take advantage of the hiring bonus for RdC recipientsthe exemption from contributions for those who employed citizens’ income beneficiaries on a permanent basis in 2023.

After the green light from the European Commission at the end of 2023 and last April, theINPS provided the instructions regarding the measure proposed by the 2023 Budget Law with the circular of 28 June.

The bonus includes a exemption from the payment of 100 percent of contributions for social security purposes within the annual limit of 8,000 euros for one year.

Bonus for hiring citizens’ income recipients: INPS instructions for use

INPS with the circular no. 75published on June 28, 2024, provides the instructions operational for the use of hiring bonus for citizens’ income recipients.

This is the contribution exemption extended to 2023 by the last Budget and recognised in favour of employers private individuals who from January to December of last year have subject the beneficiaries of financial support.

The incentive, one total relief of up to 8,000 euros for one yearconcerns social security contributions paid by the employer, excluding INAIL premiums and contributions.

The bonus is for new ones permanent employment and for them transformations of fixed-term contracts into permanent contracts (including temporary work), carried out from 1 January to 31 December 2023.

I am excluded intermittent employment relationships, occasional work performances, apprenticeship relationships and domestic work relationships. Part-time relationships, however, fall within the scope of application.

Employers (excluding companies in the financial sector and public administration), as mentioned, are entitled to a total exemption from paying contributions up to the maximum limit of 8.000 eurore-parameterized and applied on a monthly basis.

Bonus for hiring RdC recipients: requirements and conditions for use

The fruition the exemption from contributions, moreover, is subject to compliance with specific requirements:

regularity of social security contribution obligations, pursuant to the DURC;
absence of violations of the fundamental rules for the protection of working conditions and compliance with other legal obligations;
compliance with national and regional, territorial or company collective agreements and contracts, signed by the comparatively more representative employers’ and workers’ trade union organizations on a national level.

Furthermore, the right to benefit from the contribution exemption is subject to compliance with specifications conditions:

the hiring must not constitute the implementation of a pre-existing obligation;
the hiring must not violate the right of priority to rehire another dismissed worker;
the employer or user must not be suffering from any suspensions from work related to a company crisis or reorganisation;
the hiring must not concern workers dismissed in the previous 6 months by an employer who, at the date of dismissal, had elements of a relationship with the hiring employer.

The measure was authorized by EU commission in compliance with the conditions established by the “Temporary Crisis and Transition Framework” in force until 30 June 2024 and cannot be combined with other exemptions or reductions in financing rates provided for by current legislation.

It turns out compatible with other benefits, in Contribution limits overall, only in the event that the exemption does not exhaust the entire contribution.

“As expressly provided for by Article 1, paragraph 296, of the 2023 Budget Law, the exemption in question is an alternative to the exemption referred to in Article 8 of Legislative Decree no. 4/2019.”

The exemption is, however, fully cumulative with the tax wedge cut effective for pay periods January 1 through December 31, 2023.

Bonus for hiring RdC recipients: instructions for exposure in UNIEMENS

Beneficiaries access the benefit through the UNIEMENS flow complaints. As usual, employers must expose the workers for whom the exemption is due by valorising the element “Taxable” and the element “Contribution” of the section “Individual Report”.

Per expose the benefit from the relevant period following the publication of the INPS circular, it is necessary to valorise the following elements:

in the element “Reason Code” the new value must be entered “ERCI”meaning “Exemption for hiring/transformations from article 1, paragraph 294, of law 29 December 2022, n. 197”;
in the element “IdentReasonUsageCausal” the hiring date or transformation date must be entered in the YYYY-MM-DD format.
in the element “AnnoMeseRif” the YearMonth of reference for the adjustment must be indicated;
in the element “BaseRif” the amount of taxable salary paid in the month must be entered, to be valued exclusively for periods in arrears, i.e. such that it is different from the period covered by the report;
in the element “ImportoAnnoMeseRif” the adjusted amount relating to the specific competence must be indicated.

INPS will then assign the codes newly established:

“L597” meaning “Equalization exemption for hiring/transformations from article 1, paragraph 294, of law 29 December 2022, n. 197”;
“L598” meaning “Adjustment of arrears exemption for hiring/transformations from article 1, paragraph 294, of law 29 December 2022, n. 197”.

For everyone else details on the use of the bonus for hiring citizens’ income recipients, please refer to the full text of the INPS circular no. 75/2024.