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Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure IT-2020-33/1196 – measures in Italy

Reduction of social security contributions for affected companies

Esonero dal versamento dei contributi previdenziali

Country Italy , applies nationwide
Time period Temporary, 15 August 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Lisa Dorigatti (University of Milan) and Eurofound
Measure added 28 September 2020 (updated 05 November 2020)

Background information

Law Decree No. 104 of 14 August 2020 envisages several temporary and permanent measures to reduce social security contributions in charge of employers (art. 3, 6 and 27) in order to support them to face the socio-economic consequences of the COVID-19 pandemic, and to retain or possibly expand employment.

Content of measure

The Law Decree introduced various temporary and selective measures to reduce employer social security contributions. A total exception is granted to:

  • Companies which relied on the COVID-19 wage guarantee fund in the months of May and June 2020 and do not further benefit of the fund. The reduction is granted for a maximum of four months and until 31 December 2020, and the amount granted is equal to an amount of hours double the hours of wage guarantee fund used;
  • Companies activating permanent contracts by 31 December 2020 (both in the case of a new hire and in the case of transformation of a previous fixed-term contract). The reduction is granted for a maximum of six months.

A reduction of up to 30% of the social security contributions due for companies located in economically disadvantaged areas.

Use of measure

No information available.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A


The measure was set unilaterally by the government, but social partners were heard by the Labour Ministry.

Views and reactions

The trade unions, and particularly CGIL, were rather sceptical to measures aiming at reducing business contributions, as they are considered unconditional not able to positively influence business behaviour.



Eurofound (2020), Reduction of social security contributions for affected companies, measure IT-2020-33/1196 (measures in Italy), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.