[Italy] Budget 2026 employment and benefits changes for employers

In Italy, several employee benefits-related reforms have now been implemented through the nation’s 2026 Budget Law, Lockton reports. 

Among the key reforms are changes to the automatic enrollment mechanism under the severance pay system (Trattamento di Fine Rapporto).

In addition, Italians have reportedly seen an increase in unpaid leave to care for a sick child from five to 10 working days, an increase in the child age limit for parental leave from 12 to 14 years old, and an increase in the meal voucher exemption threshold from €8.00 to €10.00.

The majority of these changes took effect on January 1, 2026. However, certain severance pay system changes will come into effect on July 1.

Source: Lockton

In Italy, several employee benefits-related reforms have now been implemented through the nation’s 2026 Budget Law, Lockton reports. 

Among the key reforms are changes to the automatic enrollment mechanism under the severance pay system (Trattamento di Fine Rapporto).

In addition, Italians have reportedly seen an increase in unpaid leave to care for a sick child from five to 10 working days, an increase in the child age limit for parental leave from 12 to 14 years old, and an increase in the meal voucher exemption threshold from €8.00 to €10.00.

The majority of these changes took effect on January 1, 2026. However, certain severance pay system changes will come into effect on July 1.

Source: Lockton