EU: green light for 535 million euros in aid to support the labor costs of Italian companies


The European Commission has approved two Italian aid schemes, with a total budget of about 535 million euros, to support the labour costs of companies in the context of Russia’s war against Ukraine. The schemes were approved under the Temporary Framework for State aid in the event of crisis and transition, adopted by the Commission on 9 March 2023 to support measures in key areas in order to accelerate the green transition and reduce the dependence on fuels.

The measures will be open to companies of all sizes, active in all sectors. Under both schemes the aid will take the form of an exemption from the payment of social security contributions for employment contracts for young workers (i.e., under 36 years) and women, up to a maximum of 8,000 euros per contract of employment. Companies may access aid if they have hired between 1 July 2022 and 31 December 2023.