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Friday, May 15, 2026

Italy: New Budget Law Has Employment and Social Security Provisions - SHRM

Italy’s state budget for 2024 and its multi-year budget for 2024-2026, which took effect Jan. 1, introduced some initiatives aimed at workers and businesses.

Here are some of the most significant provisions relating to employment and social security.

Employment

Parental leave: The parental leave allowance up to the child’s sixth year of life has been increased to 80 percent of the salary up to a maximum of one month and to 60 percent of the salary up to a maximum of one additional month—raised to 80 percent for 2024 only—for either of the parents and for a maximum total duration of two months until the child’s sixth year of life.

Recruitment of women who have been subject to abuse: Private companies that, in the three-year period 2024-2026, hire unemployed women who have been subject to abuse who are beneficiaries of the so-called Freedom Income are fully exempt from paying social security contributions, excluding premiums and National Institute for Insurance against Accidents at Work, up to a maximum limit of 8,000 euro per year. The contribution relief is guaranteed for 24 months in the case of permanent employment and for 12 months in the case of fixed-term employment, with an increase to 18 months if the contract is converted from fixed-term to permanent.

Social Security

Quota 103: The right to flexible early retirement for workers who as of Dec. 31, 2024, are 63 and have at least 41 years of accrued contributions—the so-called Quota 103—has been extended for 2024.

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