Commission approves €1.1 billion Italian state aid scheme to support employment of young people and women

The European Commission has approved, under EU state aid rules, an estimated €1.1 billion Italian scheme to support the employment of young people and of female workers. The scheme contributes to the EU's social and employment policy objectives and is partly funded through the European Social Fund Plus (ESF+).

The scheme will support more vulnerable groups of workers who face higher levels of unemployment than other categories of workers (e.g. older than 35 or male workers). In addition, the scheme addresses female unemployment in the regions of Mezzogiorno, where the unemployment rate is considerably higher compared to the rest of Italy and to the EU average.

Under the scheme, employers, who hire young people or female workers with a contract of indefinite duration, will be exempted from the payment of mandatory social security contributions. The maximum amount of aid is €650 per worker per month, and €500 in case of young people in areas other than Mezzogiorno. To be eligible under the scheme, the employment contract must be concluded before 31 December 2025. Eligible employers will receive the aid for a period of 24 months following the recruitment.

The Commission assessed the scheme under EU state aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU (‘TFEU'), which enables member states to support the development of certain economic activities subject to certain conditions, and the Employment Aid Communication.

Executive Vice President Teresa Ribera, in charge of competition policy, said: “Ensuring stable employment for young people and for women remains a priority and a policy goal for the European Union. This €1.1 billion scheme will allow Italy to offer young and female workers better labour perspectives and to combat regional disparities.”

A press release is available online.

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