From May 16, 2025, applications open for the incentive under the Cohesion Decree: up to €650 per month for each permanent young hire
What the new 2025 youth bonus provides
The youth bonus is a government incentive under the Cohesion Decree (Decree Law No. 60/2024, converted into Law No. 95/2024) aimed at encouraging permanent employment of under-35 workers. As of May 16, 2025, the INPS online application system is operational for submitting requests to access the benefit.
The measure is part of the National Programme “Youth, Women and Work 2021–2027”, and has been approved by the European Commission. It’s a key tool to reduce youth unemployment, particularly in economically weaker areas of the country.
How much the incentive is worth
The bonus grants full exemption from employer social security contributions (excluding INAIL premiums), with a maximum of €500 per month per worker for a period of 24 months.
For companies located in Southern Italy (Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria, Sardinia), the benefit is boosted to €650 per month, up to a maximum of 50% of the wage cost, as defined by EU Regulation No. 651/2014.
Who can benefit from the bonus
Eligible young workers must:
- be under 35 on the date of hiring;
- have never held a permanent contract before, unless the previous incentive was only partially used.
The bonus excludes:
- domestic work contracts;
- apprenticeship contracts;
- companies in financial distress as per EU rules;
- employers subject to State aid recovery orders.
How to apply
Interested employers must submit an online application to INPS. In Southern Italy, this request must be filed before the hiring. Once submitted, INPS will:
- verify requirements;
- reserve the necessary resources;
- impose a strict 10-day deadline to complete the hiring.
If the employer fails to hire within this timeframe, the application is void, and a new request must be made.
Conditions for eligibility
To access the incentive, employers must:
- be compliant with contribution and safety regulations;
- not have fired any employees in the same production unit in the 6 months before the hiring;
- not fire the new hire or similar roles in the 6 months following the hiring.
Implementation rules and budget limits
The incentive is regulated by Ministerial Decree No. 66/2025 and INPS Circular No. 90 of May 12, 2025, which define:
- the application procedure;
- management and monitoring rules;
- the maximum spending cap, beyond which INPS will stop accepting new applications.
FAQ
Who can benefit from the youth bonus?
Private companies hiring under-35 workers on permanent contracts.
What is the maximum exemption amount?
€500/month or €650/month in Southern regions.
How long does the exemption last?
For up to 24 months.
What happens if the 10-day hiring window is missed?
The employer must submit a new application.
Is the bonus valid for contract conversions?
Yes, for converting fixed-term contracts into permanent ones.
Can a previously permanently employed youth still qualify?
Only if the bonus was only partially used by a previous employer.
Can part-time contracts benefit from the bonus?
Yes, but the amount will be proportional to the wage.
Are INAIL premiums included in the exemption?
No, they remain the employer’s responsibility.
Are cooperatives eligible?
Yes, if all conditions are met.
Can the bonus be combined with other incentives?
Only if allowed under current legislation and EU rules.
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