The Italian National Institute of Social Security (INPS) has outlined the criteria to qualify micro, small and medium-sized enterprises (SMEs) for the ‘Decontribuzione Sud’ exemption (INPS, message 30 July 2025, n. 2398). The 2025 Budget Law, in article 1, paragraph 406, provides an exemption from the payment of pension contributions, with the exception of premiums and contributions due to INAIL, for micro-enterprises and SMEs employing permanent workers in the regions of Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria, and Sardinia.
The definition of micro-enterprises and SMEs is contained in Annex I to EU Regulation 2014/651 of the Commission, of 17 June 2014 (articles 1 and 2). The identification of “micro-enterprises, small and medium-sized enterprises (SMEs)” takes into consideration three criteria – calculation of the number of actual employees, annual turnover, and the total annual balance sheet.
In particular, the category of micro, small, and medium enterprises comprises businesses that have: less than 250 workers, an annual turnover not exceeding 50 million euros or alternatively, a total annual balance sheet not exceeding 43 million euros.
INPS has introduced a functionality in the monthly reports to check the workforce of the relevant month, and provisionally prevent the possibility of submitting the report with the decontribution if the number of employees calculated in the month exceeds 250 units. However, as the calculation of the actual workforce and financial amounts must take into account the last closed financial year and perform the calculation annually, such control can be bypassed by the interested subject who believes they fall within the legitimate application of the measure under discussion, sending the monthly report with the ‘Decontribuzione Sud PMI’.
In such a case, the Institute specifies that it is the responsibility of the same interested subject to provide, on express request, the supporting documentation relating to compliance with annual size thresholds and turnover or balance sheet.
