SERVICES
Incentives
Youth Bonus: from July 1, 2025, the incentive will be subject to a net increase in employment
INPS
INPS has clarified a significant change regarding youth employment incentives. Following the interministerial decree published last May, the conditions for accessing the social security contribution exemption for employers hiring young people under a subordinate employment contract have been redefined.
The measure, already known as the “Youth Bonus,” provides for the elimination of social security contributions payable by the company (excluding INAIL premiums and contributions), up to a maximum of €500 per month per worker.
However, for hires or contract conversions made from July 1, 2025, the possibility of benefiting from the incentive is subject to an additional requirement: the employer must ensure a net increase in employment compared to the previous company workforce.
This means the benefit will be granted only if the new hire or conversion actually results in an increased total number of employees. This condition, required by the European Commission, aligns the youth incentive with other types of exemptions and aims to promote real employment growth.
Employers must declare, in the application for the incentive, that they will achieve and maintain this increase, in accordance with new operational instructions.
Social security and contributions
Contribution limitation period: late salary payment does not extend the employer’s obligation
Supreme Court, Labor Section
The case arose from a former worker seeking compensation for pension losses due to unpaid contributions on a productivity bonus owed in 2005 but paid years later by court ruling.
The employer asked INPS to accept the late-paid contributions, but the agency refused due to the five-year limitation period.
The Court of Appeal had sided with the worker, reasoning that the limitation should start from the actual payment date.
However, the Supreme Court overturned this, reaffirming the accrual principle: contribution obligations arise based on salary due, not actually paid.
Thus, contributions were due when the bonus should have been paid under law or contract, and the limitation period starts from that date.
Late payment doesn’t delay the obligation or extend the limitation period.
This principle also applies to bonuses, where the relevant month is the one set by law or contract.
Confidentiality and privacy
Employees and digital monitoring: Privacy Authority sanctions excessive metadata retention
Italian Data Protection Authority (Garante Privacy)
The Privacy Authority concluded an investigation into a public administration that retained email metadata of employees for 90 days for security and technical support, without a proper union agreement.
It also found prolonged retention of internet browsing logs and technical support data, as well as contract deficiencies with service providers.
The region involved later corrected its practices: it signed agreements with unions, updated internal policies, and introduced data anonymization procedures after certain periods.
The Garante emphasized that employers must respect principles of data minimization and transparency, even in remote work scenarios, and may monitor workers only within the limits set by labor law protections.