In the Ordinary Supplement No. 42 to Official Gazette No. 301 of 30/12/2025, Law No. 199 (Budget Law 2026) was published, effective 1/1/2026.
Below are the main changes for employers.
Summary
Recruitment of permanent workers
For 2026, an incentive is envisaged for the permanent hiring (or transformation of contracts) of non-executive personnel in the private sector. The incentive is aimed at favouring the employment of young people, disadvantaged women and the development of the single SEZ (Special economic Zone) in southern Italy. It consists of a partial contribution exemption (excluding INAIL) for a maximum duration of 24 months.
The actual operation of the measure remains subject to the issuance of a future inter-ministerial implementing decree.
Recruitment of working mothers
From 2026, private employers will be able to benefit from an incentive to hire mothers with at least three minor children who have not been in regular paid employment for six months.
The benefit consists of total exemption from social security contributions (up to € 8,000 per year), with a variable duration:
- 12 months for fixed-term contracts;
- 18 months in the case of transformation;
- 24 months for open-ended contracts.
Apprenticeships and domestic work are excluded. The measure cannot be cumulated with other tax reliefs, but is compatible with the maxiduction for new hirings (DLgs. 216/2023).
Transformation of contracts
As of 1 January 2026, a priority criterion is introduced for the transformation of the contract from full-time to part-time (with a reduction in working hours of at least 40 per cent) for parents with at least three cohabiting children, up to the age of the youngest child (or with no age limit for disabled children). Private employers who grant such a transformation will enjoy a 100% contribution exemption (excluding INAIL) for a maximum of 24 months and up to € 3,000 per year.
Domestic work and apprenticeships are excluded, and the measure cannot be combined with other reliefs, although it is compatible with the maxi subsidy for new hirings. Operation is subject to a future ministerial decree and to spending limits.
De-taxation of performance bonuses
For 2026-2027, the substitute tax on registered performance bonuses drops from the current 5 per cent to 1 per cent, up to a limit of € 5,000. The tax relief on dividends paid to employees in lieu of bonuses is extended, 50% exempt up to € 1,500.
In 2026, a 5% substitute tax on salary increases resulting from contractual renewals will apply for those with employment income up to € 33,000 in 2025.
Electronic meal vouchers
From 2026, the exemption threshold for electronic meal vouchers rises from €8 to €10, while it remains at €4 for paper ones. Meal vouchers can be used to buy food or to go shopping at the supermarket. They are non-transferable, convertible into cash and can be accumulated up to a maximum of 8 per transaction in the same shop. They are also available to smart workers and part-time workers without reduction.
Bonus for mothers 2026 and postponement of partial decontribution
For 2026, the partial decontribution for working mothers (employees and self-employed) with income up to € 40,000 is postponed to 2027.
In its place, the ‘Bonus Mamme 2026’ is re-proposed, a contribution of € 60 per month exempt from taxes and contributions, which does not count for ISEE purposes. The bonus is available to mothers of two children (up to the child’s 10th birthday) and mothers of three or more children (up to the child’s 18th birthday), including employees, self-employed persons and professionals. For mothers with at least three children, the bonus is limited to periods not covered by an open-ended contract. The benefit will be paid by INPS in a lump sum in December 2026, upon application, covering the months accrued from January to November.
However, the future operability of the decontribution from 2027 remains linked to an implementing decree.
Extension of under 36 incentive and South decontribution to insurance agents
An authentic interpretation rule extends the incentive for hiring the under 36s and the ‘Decontribuzione Sud’ also to insurance intermediaries (brokers, agents and sub-agents). The relief is granted retroactively as of 1 July 2022, in accordance with the decisions of the European Commission.
The employers concerned will be able to recover the credit accrued during the entire year 2026. The measure thus heals the exclusion of these professional categories from the contribution benefits provided for in the Budget Law 2021.
Provisions on severance pay and membership of supplementary pension schemes
As of 2026, the rules on severance pay management and supplementary pensions in the private sector will change radically. Here are the main points:
Extension of the INPS Treasury Fund
The obligation to pay severance pay to the INPS Treasury Fund is extended for companies exceeding the 50-employee threshold. Unlike in the past, the limit is no longer ‘crystallised’ at 2006 or the year of commencement, but is recalculated annually on the average of the previous year. For the two-year period 2026-2027, there is a transitional phase: the obligation is only triggered above 60 employees. From 2032, the structural threshold will fall further from 49 to 39 employees.
New Silent-Assent mechanism
The tacit contribution of severance pay to pension funds is extended. In addition to first-time employees, the mechanism will also apply to those who, although not in their first employment, had already joined a collective pension fund in a previous relationship. In the absence of indications, the TFR will flow to the most representative collective fund in the company or, in the absence of agreements, to the residual pension form provided for by law.
Right of Waiver and Disclosure
The employee retains the right to oppose automatic affiliation within 60 days of employment, choosing to allocate the severance pay to a fund of his preference or to keep it in the company according to the rules of the civil code. The employer has a strict obligation to provide full information on these options at the time of recruitment, also verifying the employee’s past choices by means of a declaration.
Freedom of Transfer
An important innovation concerns portability: the clause that made the employee’s right to transfer new severance pay and employer contributions to a pension fund other than a collective agreement is removed. This strengthens the employee’s freedom to choose the pension fund he or she prefers without losing the company’s contribution.
Amendments to the regulations on supplementary pensions
From 1 July 2026, supplementary pension provision becomes more flexible: the share of liquidated capital rises from 50 per cent to 60 per cent of the accumulated capital.
New payment methods are introduced in addition to the life annuity, such as a defined term annuity, free withdrawals or fractional payments for at least 5 years. If the annuity from 70 per cent of the amount is less than half the social allowance, it can all be redeemed as a lump sum. The new annuities will be managed directly by pension funds.
Adjustment of pension requirements to increases in life expectancy
For the year 2027 only, the increase in pension requirements linked to life expectancy will be limited to one month, postponing the full increase by three months to 2028. This adjustment does not apply to workers employed in heavy or usurious activities (including the ‘precocious’) with at least 30 years of contributions. Finally, the continuity of the benefit is guaranteed for social APE beneficiaries until they reach the new retirement age.