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.
Early pension: The early pension allowance has been extended for the whole of 2024, with an increase in the age requirement to 63 years and five months—instead of 63 years—and continuation of the contribution requirement.
Women’s early retirement option: The age requirement for access has been raised from 60 to 61 years of age.
Performance bonuses: The substitute tax rate on sums paid as performance bonuses will be reduced from 10 percent to 5 percent for 2024.
Fringe benefits: For 2024, the following do not contribute to the calculation of income, within the overall limit of 1,000 euro (raised to 2,000 euro for workers with children): 1) the value of goods sold and services provided to employees; and 2) the sums paid or reimbursed by employers for the payment of household utilities, the costs of renting the first home or for the interest on the mortgage for the first home.
De Luca & Partners, a firm of labor and employment lawyers in Milan. © 2024 De Luca & Partners. All rights reserved. Reposted with permission of Lexology.
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