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The Council of Ministers passed the new Labor Decree on the eve of May Day, which includes provisions on wages, employment, and safeguards for digital platform workers. The measure, which was finalized at Palazzo Chigi, provides around €960 million, the majority of which has already been budgeted, principally to extend recruiting incentives. The basic objective of the decree is to promote stable employment by providing tax relief for up to 24 months to companies that employ women and young individuals under the age of 35 who are long-term unemployed or belong to disadvantaged groups on permanent contracts. Incentives can be up to €650 per month for women and €500 for young people, with additional benefits for businesses operating in Southern Italy's Special Economic Zone (SEZ). The "fair wage" principle is a critical component of the measure, as incentives will be awarded exclusively to companies that adhere to wages that are no lower than those established by the most representative national collective bargaining agreements. This legislation intends to counteract so-called "pirate contracts" by bringing the Italian system closer to an indirect minimum wage. The decision also addresses contract renewal delays by requiring an automatic pay adjustment equal to 50% of inflation 12 months after the contract expires. Rider protections are expanded in the context of new forms of employment, including access to platforms only with a confirmed digital identity, more openness of algorithms, and a ban on account transfers. "This is part of a broader strategy to support stable, quality employment", remarked Prime Minister Giorgia Meloni, pointing to the provision of "nearly one billion euros for employment incentives". Finally, the government is already considering future measures: the Housing Plan is next, and a further extension of the excise duty reduction is being considered, which could have a greater impact on diesel fuel than gasoline.
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