Business · Economy · 9 hrs ago
Italian SMEs face high costs when hiring young workers, CNA says
CNA says Italian small businesses face Europe’s highest costs for employing young workers.
Its estimate is that a worker receiving €24,000 net a year costs an Italian business more than €43,000, including pay, taxes, social contributions and severance payments.
The comparison assumes a five-person business hiring a single, childless 25-year-old on a permanent contract after hiring incentives end.
The estimated cost is lower in Germany, Portugal, Spain, France and Ireland than in Italy.
CNA says a temporary contribution exemption can bring the cost down to about €37,500 for two years, then push it above €43,500 when the exemption ends, even if the worker’s pay does not rise.
That increase can make it harder for small firms to keep young workers: over five years, the total cost exceeds €200,000, while the worker receives €120,000 net.
CNA is calling for lasting ways to reduce employment costs, saying hiring support should help young people stay in stable jobs, not just start them.
CNA says Italian small and medium-sized businesses face the highest costs among the European countries it compared when employing young workers.
For every €100 a young worker receives net, an Italian small business pays €180, compared with €127 in Ireland and €166 in France.
CNA estimates that providing a young worker with €24,000 net pay a year can cost an Italian small business more than €43,000.
The estimate models a five-person business hiring a 25-year-old on a permanent contract after hiring incentives have ended.
CNA says policy should make young workers’ continued employment affordable, rather than rely on temporary incentives.
- Who
- The CNA, an association representing artisans and small businesses, presented the estimates. Its president is Dario Costantini.
- What
- CNA says Italian SMEs face high costs when hiring young workers and calls for employment policies that support continued employment.
- When
- The article was published on 31 October 2026.
- Where
- Italy, with costs compared with Ireland, France, Spain, Portugal and Germany.
- Why
- CNA says labor costs are high and can rise sharply when temporary hiring incentives expire.
This story does not have two clearly opposing sides.
In CNA’s example, a €6,000 annual contribution exemption reduces the company’s cost to about €37,500.
The company’s cost rises to more than €43,500, a 16% increase without a rise in the worker’s pay.
CNA says the total cost exceeds €200,000, while the young worker receives €120,000 net.
- Cost per €100 net pay
- €180 for an Italian small business
- Annual net pay in CNA example
- €24,000
- Estimated annual company cost
- More than €43,000 in Italy
- Model business
- Five employees; hires a 25-year-old on a permanent contract
- Annual contribution exemption
- €6,000 for the first two years
- Five-year totals
- More than €200,000 in company costs; €120,000 net pay to the worker
What people are saying
It is necessary to move beyond the logic of the continuous succession of temporary incentives, which can support young people's entry into the world of work but risk producing sharp discontinuities in business costs when they end.
It is not enough to incentivize the hiring of a young person; it is also necessary to make their continued employment in the company sustainable.
The problem is not only the level of labor costs. It is above all how they evolve over time.
Italian SMEs pay the highest amount compared with the main European countries.