At a glance
- The Italian government has recently approved the 2025 Budget Bill.
- Important measures have been announced regarding parental leave.
- Hiring incentives for young people and women have been extended.
- A social security exemption will apply to working mothers.
- Tax contributions for productivity bonuses have been halved.
- Special tax benefits for overtime and night shifts will apply.
The Italian government has recently released the 2025 Budget Draft Law, which introduces significant employment-related measures, which are detailed below.
Parental leave
In 2025, parents will be entitled to a total of ten months of parental leave, which can be extended to 11 months if the father takes at least three consecutive months. It is expected that three of these months (if taken in the first six years of the child's life) will be compensated at 80% of the gross monthly salary.
Hiring incentives
Incentives to hire youth and females, which were introduced in 2024, will also apply from 2026-2027. Specifically, these incentives include:
- Bonus Giovani: a 100% exemption from social security contributions (for a maximum period of 24 months) for private employers hiring non-managerial staff under the age of 35 who have never been permanently employed under a permanent contract.
- Bonus Donne: A 100% exemption from the payment of social security contributions (for a maximum period of 24 months), capped at EUR650 per month, for each woman hired on an open-ended contract who falls into the following categories:
- women of any age, who have been unemployed for at least six months, residing in the Special Economic Zone in southern Italy (ZES), which includes Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sicily, and Sardinia); or
- women of any age, unemployed for at least 24 months, regardless of residence.
- Bonus ZES: A 100% exemption from the payment of social security contributions (for a maximum period of 24 months), capped at EUR650 per month, for each non-managerial permanent employee hired in ZES areas. This is only available to private employers with up to ten employees at the time of recruitment. In addition, the employee must:
- be at least 35 years old;
- have been unemployed for 24 months; or
- have been employed at a location or production unit located in the ZES region.
Social security exemption for working mothers
For working mothers with two or more children, a contribution exemption (amount to be determined by decree by the Ministry of Labour in consultation with the Ministry of Economy) is planned until the youngest child reaches the age of ten.
Productivity bonuses
The Budget Bill proposes halving the contribution rate (from 10% to 5%) on amounts paid as performance bonuses or profit-sharing.
Special tax benefits for overtime and night shifts
In order to address labour shortages in the tourism and thermal sectors, a special tax incentive is planned for the period from 1 January 2025 to 30 September 2025. This will provide for a 15% supplement on gross wages for night work and overtime on public holidays for workers in the catering, tourism and spa sectors, up to an annual income of EUR40,000 in 2024.
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