Newsletter January 2026

2026 Budget Law – tax regime of employment income

Substitute tax on pay increases granted pursuant to collective bargaining renewals (art. 1, paras. 7 and 12)

Pay increases paid during 2026 to employees of the private sector as a result of collective bargaining agreements – national, territorial or company-level – entered into between 1 January 2024 and 31 December 2026 are subject to a substitute tax in lieu of IRPEF and regional and municipal surtaxes, set at 5%.

The favourable tax regime, introduced in order to support wage adjustment to the cost of living while strengthening the link between productivity and remuneration, applies only to employees who, during 2025, were in receipt of employment income not exceeding EUR 33,000 gross.
Eligible employees may also waive the application of the favourable tax regime by formally notifying the withholding agent of their intention.

 

Substitute tax applied to performance-related bonuses introduced by territorial or company-level collective agreements (art. 1, paras. 8 and 9)

Art. 1(182) of Law No. 208/2015 provides, as a general rule, that performance-related bonuses of a variable amount, linked to increases in i) productivity, ii) profitability, iii) quality, iv) efficiency and v) innovation, are subject to a substitute tax in lieu of ordinary IRPEF income tax, as well as regional and municipal surtaxes, at a rate of 10%; unless the employee formally waives such regime, the more favourable tax treatment applies to a measurable and verifiable performance bonus with an overall amount not exceeding EUR 3,000.

Regarding performance-related bonuses paid during 2025, said tax regime is applied, as provided for by art. 1(385) of Law No. 207/2024, at the more favourable rate of 5%.

In relation to performance-related bonuses paid during 2026 and 2027, the substitute tax will apply up to the more favourable overall threshold of EUR 5,000 and at the further reduced rate of 1%.

The above tax regime also applies to amounts paid under the declared heading of employee profit-sharing during the years 2025, 2026 and 2027.

 

Employee financial participation schemes (art. 1, para. 13)

For 2026 as well, art. 6(1) of Law No. 76/2025 continues to apply, pursuant to which dividends paid to employees and deriving from shares allocated in substitution for performance-related bonuses due under the aforementioned art. 1(182) of Law No. 208/2015 are exempt from income tax for 50% of their amount, up to an annual limit of EUR 1,500.

 

Revision of IRPEF income tax rates (art. 1, para. 3)

Amendments are introduced to the ordinary tax regime applicable to employment income referred to in art. 49 of TUIR.

With effect from 1 January 2026, the rate applicable to income exceeding EUR 28,000 and up to EUR 50,000 is reduced from 35 to 33%, while the income brackets already amended by art. 1, paragraph 2, of Law No. 207/2024 for the tax period in progress as of 1 January 2025 are confirmed.

New tax rates and corresponding income brackets are summarised below:

Income brackets applicable from January 2025	Rates applicable from January 2025
Up to EUR 28,000	23%
EUR 28,000 – 50,000	33%
Over EUR 50,000	43%

 

Limits on tax deductions (art. 1, para. 4)

With exclusive reference to taxpayers with total income exceeding EUR 200,000, the amount of the deduction from gross tax is reduced by EUR 440 in relation to the following expenses:

expenses whose deductibility is set by the TUIR – as well as by any other tax provision – at 19 per cent. Healthcare expenses referred to in art. 15(1)(c) of TUIR are excluded from the scope of this reduction,

charitable donations to political parties,

insurance premiums covering risks arising from catastrophic events.

 

Substitute meal allowances provided in electronic form (art. 1, para. 14)

The tax treatment of meal vouchers provided by employers to employees is amended.

With effect from 1 January 2026, such benefits do not contribute to taxable employment income up to a daily total amount of EUR 10, where provided in electronic form.

The non-taxable threshold applicable to non-electronic meal vouchers remains unchanged at EUR 4.

The tax exemption up to a daily total amount of EUR 5.29, applicable to substitute meal allowances granted to workers employed at construction sites, other temporary work locations or production units located in areas lacking catering facilities or services, is confirmed.

 

Application of the substitute tax to shift allowances and premiums for night work and work performed on public holidays and weekly rest days (art. 1, paras. 10-12)

For 2026 only, in the private sector a substitute tax in lieu of IRPEF and regional and municipal surtaxes at a rate of 15% applies to:

• premiums and allowances granted to employees under the provisions of the applicable NCBA for i) night work[1]and ii) work performed on public holidays and weekly rest days,
• shift allowances and any emoluments related to shift work as established by the applicable NCBA.

Unless formally waived by the eligible employee by notifying the withholding agent, the favourable tax regime applies:

• up to an overall annual limit of EUR 1,500. For the purposes of calculating this limit, performance-related bonuses and profit-sharing amounts subject to substitute tax pursuant to art. 1(182) of Law No. 208/2015 are excluded,
• provided that the employee’s income for subordinate or assimilated forms of employment for 2025 does not exceed EUR 40,000 gross.

Where the withholding agent applying the substitute tax is not the same entity that issued the single tax certification for 2025 income, the employee is required to certify in writing the amount of employment income earned during that year.

 

Substitute tax on foreign-source income realised by individuals transferring their tax residence to Italy (art. 1, paras. 25–26)

Persons transferring their tax residence to Italy pursuant to art. 2(2) of TUIR may opt for a flat-rate substitute tax on foreign-source income amounting to EUR 200,000 per year, provided that they have not been tax resident in Italy for at least nine years during the ten preceding the start of the option’s validity.

A similar tax mechanism applies, albeit at the lower flat-rate amount of EUR 25,000, to each family member of the individual who has transferred their tax residence to Italy.

As a result of the amendments introduced by the Law under review, the above substitute tax amounts are increased to:

• EUR 300,000 per tax period where, from 1 January 2026, the individual transfers their registered residence to Italy, in compliance with the above conditions, pursuant to art. 43 of Codice Civile,
• EUR 50,000 per tax period in respect of each family member.

The legislative amendment applies exclusively to cases of transfer of registered residence, defined by the aforementioned art. 43 of Codice Civile as ‘the place where a person has their usual abode’.

 

Tax treatment of variable remuneration paid to executives in the financial sector (art. 1, para. 137)

Amendments are introduced to the tax regime governing the 10% IRPEF surtax applied to i) stock options and share-based incentive schemes and ii) variable remuneration or emoluments exceeding three times the fixed component of remuneration, paid to workers classified as ‘executives’ as well as to holders of coordinated and continuous collaboration arrangements, where the employer or principal is a financial intermediary or a financial holding company.

With effect from the 2026 tax period, the said IRPEF surtax does not apply where the employer or principal allocates an amount at least double the total surtax due in favour of Third Sector entities that are different from those directly or indirectly controlling (or controlled by) the entities paying the remuneration.

The procedures and deadlines for payment of the said amount will be set out in a specific measure of the Italian Revenue Agency.

 

Scope of application of the flat-rate regime (art. 1, para. 27)

The increase to EUR 35,000 of the threshold for employment income (art. 49 of the TUIR) and income treated as employment income (art. 50 of the TUIR) received during the previous year, beyond which a worker may not apply the flat-rate regime to self-employment income (art. 1, para. 57, letter d-ter), of Law No. 190/2014), is extended to 2026.

The same income threshold had already been provided for 2025 by art. 1(12), of Law No. 207/2024.

Nova 02/2026

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2026 Budget Law: incentives for businesses and parenthood

Partial exemption from social contribution duties in the event of hiring or conversion of a fixed-term employment contract (art. 1, paras. 153–155)

In order to promote i) stable youth employment, ii) equal opportunities in the labour market for disadvantaged female workers, and iii) employment growth in the Special Economic Zone for Southern Italy, thereby fostering the reduction of territorial disparities, a partial exemption from the overall social security contribution duties payable by the employer is granted for permanent subordinate employment contracts entered into between 1 January and 31 December 2026.

Employers are also eligible for the exemption where, during the same period, they convert a subordinate fixed-term employment contract into a permanent one.

Said exemption – which does not apply to the hiring of executives, nor with regard to premiums and contribution due to INAIL – shall be granted to eligible employers for a period not exceeding 24 months.

The detailed regulation of the requirements and conditions for access to the exemption is entrusted to a specific ministerial decree, to be adopted on the basis of an assessment of the employment effects produced by the incentive measures i) ‘youth bonus’, ii) ‘women’s bonus’ and iii) ‘Special Economic Zone for Southern Italy – single ZES bonus’, as provided for, respectively, by arts. 22, 23 and 24 of Decree-Law No. 60/2024, converted into law, as amended, by Law No. 95/2024. Such assessment will be performed through analysis plans and a specific project implemented by the Ministry of Labour and Social Policies in conjunction with the Ministry of Economy and Finance.

The exemption shall be granted within the following expenditure limits:

• EUR 154 million for 2026,
• EUR 400 million for 2027,
• EUR 271 million for 2028.

 

Partial exemption from social contribution duties for the hiring of working mothers (art. 1, paras. 210-213)

In order to promote the employment of working mothers, private-sector employers who, from 1 January 2026, hire women who have been without regular paid employment for at least six months and who are mothers of at least three children under the age of 18 is entitled to benefit from a total exemption from the payment of social security contributions payable by the employer.

The exemption, which constitutes a structural measure and does not apply with regard to premiums and contributions due to INAIL, is granted up to a maximum annual limit of EUR 8,000.00.

The exemption is granted for a maximum period of:

• 12 months from the date of hiring under a fixed-term employment contract, including through agency work,
• 18 months from the date of hiring under a fixed-term employment contract, where the contract is converted into an open-ended one,
• 24 months from the date of hiring under an open-ended employment contract.

The exemption in question:

• is not cumulative with other contribution exemptions or reductions provided for by the applicable legislation,
• is compatible, without any reduction, with the increase in personnel costs eligible for deduction from business income in the event of new hires under open-ended subordinate employment contracts,
• does not apply to domestic work and apprenticeship relationships.

 

Parental leave and leave for illness of minor children (art. 1, paras. 219–220)

With effect from 1 January 2026, the possibility for a working parent to take compensated parental leave periods is extended until each child reaches the age of fourteen, instead of the previous limit of twelve years of age.

This extension of the time limit for taking parental leave also applies in the case of:

extension of parental leave for each minor child with high support needs,

adoption, both domestic and international, and fostering arrangements.

Amendments are also introduced to the rules governing leave for periods of illness of each child, with an extension of its scope of application.

Where the provisions in force until 31 December 2025 allowed the working parent to benefit from this type of leave in relation to a child aged between 3 and 8 years, with effect from 1 January 2026 such leave may be taken where the illness affects a child aged between 3 and 14 years. The number of annual working days during which each working parent is entitled to abstain from work due to a child’s illness is also increased from 5 to 10.

The leave is also granted where the child is fostered or adopted.

 

Extension of fixed-term employment contracts entered into as replacements for workers on leave (art. 1, para. 221)

Employers may hire workers under fixed-term employment contracts to replace female or male workers on maternity, paternity or parental leave, including up to one month prior to the start of such leave.

With effect from 1 January 2026, these fixed-term employment contracts may also be extended after the return to work of the replaced worker, for an additional overlap period of a duration not exceeding the child’s first year of age (art. 4, para. 2-bis, of Legislative Decree No. 151/2001).

Nova 03/2026

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2026 Budget Law: subsidised furlough measures

Subsidised furlough (CIGS) for companies operating in complex industrial crisis areas (art. 1, paras. 165–166)

In continuity with the provisions already introduced for 2025 (art. 1, para. 189, Law no. 207/2024), additional resources of EUR 100 million are allocated for 2026 from the ‘Social Fund for Employment and Training’ in order to support the completion of employment recovery plans submitted by companies operating in a complex industrial crisis area (art. 44, para. 11-bis, Legislative Decree no. 148/2015).

INPS is entrusted with the control and monitoring of expenditure flows, so that the measure is implemented within the limits of the allocated financial resources.

Employers authorised to access the above income support measures for 2026 are exempt from payment of the related additional contribution for a maximum authorised period of 12 months.

The exemption does not apply, or ceases to apply, if the employer initiates a collective redundancy procedure during the period of use of the extraordinary subsidised furlough (art. 6, para. 2, Decree-Law no. 92/2025, converted into Law no. 113/2025).

 

Subsidised furlough (CIGS) for cessation of production activities (art. 1, paras. 167 and 172)

For 2026, the extraordinary wage integration treatment for companies in crisis that have ceased, or are ceasing, production activities is extended for a maximum overall period of 12 months, within a spending limit of EUR 100 million drawn from the ‘Social Fund for Employment and Training’ (art. 44, para. 1, Decree-Law no. 109/2018, converted into Law no. 130/2018). This applies where there are concrete prospects of transferring the business, leading to re-employment, or where a process of reindustrialisation of the production site can be implemented.

By way of derogation from the rules on (i) the maximum overall duration of ordinary and extraordinary wage integration (art. 4, Legislative Decree no. 148/2015) and (ii) the duration of extraordinary wage integration (art. 22, Legislative Decree no. 148/2015), such subsidised furlough may also be authorised, notwithstanding art. 20, para. 3-bis, Legislative Decree no. 148/2015, for employers covered by bilateral solidarity funds, including alternative funds, and by the Intersectoral Territorial Fund of the Autonomous Provinces of Trento and Bolzano.

Without prejudice to the above, for 2026 companies in crisis may also benefit from a further period of extraordinary subsidised furlough of up to six months, not extendable, subject to an agreement concluded at governmental level before the Ministry of Labour and Social Policies where concrete prospects of transfer, including partial transfer, of the business emerge, with consequent re-employment.

For this purpose, the above spending limit is increased by a further EUR 20 million for 2026.

 

Subsidised furlough (CIGS) for companies of national strategic interest (art. 1, para. 171)

For companies of national strategic interest employing at least 1,000 employees and implementing corporate reorganisation plans not yet completed due to their intrinsic complexity, an additional period of CIGS subsidised furlough may be authorised, on an exceptional basis and in order to safeguard employment and the company’s skills base, until 31 December 2026.

This authorisation operates by way of derogation from the current provisions on (i) the maximum overall duration of ordinary and extraordinary wage integration (art. 4, Legislative Decree no. 148/2015) and (ii) the duration of extraordinary wage integration (art. 22, Legislative Decree no. 148/2015).

The measure is recognised within a spending limit of EUR 63.3 million for 2026; monitoring of this limit is entrusted to INPS.

 

Subsidised furlough (CIGS) for corporate reorganisation or crisis (art. 1, paras. 173–174)

Within an annual spending limit of EUR 150 million for each of the years 2026 and 2027, the provisions granting extraordinary wage integration treatment for corporate reorganisation or crisis are extended for companies of strategic economic relevance, including at regional level, facing significant employment issues.

Subject to the conclusion of a specific agreement at governmental level, an extension of the CIGS special subsidised furlough may be granted for a period not exceeding 12 months (art. 22-bis, Legislative Decree no. 148/2015).

The same treatment had already been financed with EUR 100 million for 2025 (art. 1, para. 193, Law no. 207/2024).

Nova 04/2026

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2026 Budget Law: pension funds

INPS Treasury Fund: obligation for all employers with a headcount of 60 or more employees (art. 1, para. 203)

The 2026 Budget Law provides that, for all companies with an average workforce of 60 employees or more in 2025, the TFR of workers who have not opted for allocation to a pension fund will no longer remain within the company, but will instead be accrued with the Treasury Fund managed by INPS, where employers will pay a monthly contribution equal to the amount of TFR accrued by each employee. From 2028, the headcount limit will be lowered to 50 and, as from 2032, the obligation will be extended to companies with an average workforce of not less than 40 employees.

We recall that the obligation to pay TFR into the Treasury Fund established with INPS had been limited, from 2007 and until the introduction of this new provision, to companies with a workforce equal to or exceeding 50 employees:

• as of 31/12/2026, or
• at the end of the first year of activity.

It is worth noting that the accrual obligation established by exceeding the threshold in any year will remain even in case the employer, in the future, falls below the relevant threshold once again.

As the literal phrasing of the law is open to different interpretations, we await imminent instructions and clarifications from competent Authorities.

Other new relevant regulations re: pension funds will be published once the required operational decrees are published and applicable.

Nova 05/2026

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2026 Budget Law: pensions

Access to old-age and early retirement pensions (art. 1, paras. 185–193)

In order to align access requirements to the pension system with changes in life expectancy as determined by ISTAT on the basis of biennial demographic data, a one-month increase in the minimum age requirement for access to the old-age pension is introduced for 2027 only.

On the basis of estimates prepared by the State General Accounting Office using ISTAT demographic projections (Population and Household Forecasts, 28 July 2025), a further two-month increase in the age requirement will apply from 1 January 2028.

The contribution requirement for access to the old-age pension is increased correspondingly. The revised requirements are therefore as follows:

• 67 years and 1 month of age and 20 years and 1 month of contributions from 1 January 2027,
• 67 years and 3 months of age and 20 years and 3 months of contributions from 1 January 2028.

The increase in the contribution requirement also applies to access to the early retirement pension (art. 24, para. 10, Decree-Law no. 201/2011, converted into Law no. 214/2011). Accordingly, access to early retirement is subject to the following contribution requirements:

• 42 years and 11 months for men, reduced by one year for women, from 1 January 2027,
• 43 years and 1 month for men and 42 years and 1 month for women from 1 January 2028.

These increases do not apply to:

• employees with at least 30 years of contributions who, at the time of retirement, have performed for at least 7 of the last 10 years or 6 of the last 7 years arduous occupations listed in Annex B to Law no. 205/2017 (e.g. extractive industry workers, construction drilling machinery operators, train drivers),
• employees with at least 30 years of contributions who have carried out particularly strenuous or arduous work (art. 1, para. 1, Legislative Decree no. 67/2011) for at least 7 of the last 10 years or at least half of their total working life (e.g. tunnel, quarry or mine work, or high-temperature work),
• early workers with at least 12 months of effective contributions accrued before the age of 19 (art. 1, para. 199, Law no. 232/2016), provided they carry out the above arduous activities and meet the relevant conditions.

The revised requirements effective from 1 January 2027 do not apply to workers who, on that date, are already beneficiaries of the ‘APE sociale’ early retirement plan.

For the 2025–2026 period, age and contribution requirements for old-age and early retirement pensions remain unchanged (Ministerial Decree 18 July 2023).

 

Extension of the ‘APE sociale’ early retirement plan (art. 1, paras. 162–163)

The experimental ‘APE sociale’ early retirement scheme is extended until 31 December 2026. Under this measure, workers enrolled in the compulsory general insurance scheme (AGO), substitute or exclusive schemes, or the Separate Management scheme, who are at least 63 years and 5 months old and have at least 30 years of contributions, are entitled to an allowance until reaching the statutory old-age pension age, provided one of the following conditions applies:

• unemployment following dismissal (including collective dismissal), resignation for just cause, consensual termination, or expiry of a fixed-term contract, provided that in the 36 months preceding termination the worker accrued at least 18 months of employment; the individual must not be receiving unemployment benefits and must have at least 30 years of contributions,
• provision, for at least six months, of care to (i) a spouse, (ii) a cohabiting first-degree relative with severe disability, or (iii) a cohabiting second-degree relative with severe disability whose parents or spouse are over 70, disabled, deceased or absent, and with at least 30 years of contributions,
• certified civil invalidity of at least 74% and at least 30 years of contributions,
• employment in one of the arduous occupations listed in Annex C to Law no. 232/2016, with at least 36 years of contributions and performance of such work for at least 7 of the last 10 years or 6 of the last 7 years.

For female workers, the contribution requirement is reduced by 12 months per child, up to a maximum of two years.

The allowance is not compatible with employment or self-employment income, except for occasional self-employment income up to EUR 5,000 gross per year.

 

Incentives to retain workers in service (art. 1, para. 194)

Workers who, by 31 December 2026, meet the requirements for flexible early retirement (‘quota 103’) or standard early retirement (42 years and 10 months of contributions for men; 41 years and 10 months for women) may waive the crediting of their own employee pension contributions.

As a result, the employer is no longer required to pay the corresponding compulsory contribution from the first possible retirement date. The equivalent amount paid directly to the worker does not constitute taxable employment income for the period following the first retirement eligibility date (art. 51, para. 2, let. i-bis TUIR).

 

Annuity benefits from supplementary pension funds and early retirement (art. 1, para. 195)

The provision allowing workers to count the theoretical value of annuity benefits from supplementary pension schemes towards the minimum amount required for early retirement (art. 24, para. 7-bis, Decree-Law no. 201/2011) is repealed.

This option, introduced for 2025 only, is no longer available from 2026.

 

Failure to pay contributions and establishment of a life annuity (art. 1, para. 196)

Without prejudice to criminal liability for failure to remit withheld employee contributions, an employer who has failed to pay compulsory pension contributions may request INPS to establish a transferable life annuity in favour of the worker equivalent to the pension (or portion thereof) that would have been payable had the contributions not become time-barred.

If the employer is unable to make such request (e.g. due to insolvency), the worker may apply directly, providing evidence of the employment relationship and remuneration received. The worker retains the right to claim damages for the omitted contributions.

To establish the annuity, the applicant must pay INPS an amount calculated on the basis of specific tariffs determined by the Ministry of Labour and Social Policies (art. 13, Law no. 1338/1962).

Updated tariff tables are to be adopted by ministerial decree by 1 April 2026.

Nova 07/2026

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Hiring incentives – New eligibility requirement

With the stated aim of promoting the transparent functioning of the labour market, fostering equal opportunities, strengthening health and safety protections and assessing the impact of public intervention, art. 14, para. 1 of Decree-Law no. 159/2025 (converted, with amendments, into Law no. 198/2025) enhances the role of the Information System for Social and Employment Inclusion (SIISL).

The SIISL platform, introduced by art. 5 of Decree-Law no. 48/2023 (converted into Law no. 85/2023), is designed to facilitate job matching, access to training opportunities and skills development.

Under the new provisions, any private employer wishing to benefit from contribution relief granted in connection with the hiring of an employee must declare its recruitment vacancy through the SIISL platform.

This notification requirement will constitute a necessary condition for access to hiring-related contribution incentives and is intended to enable employers and employment agencies to identify the most suitable candidates for available positions. The measure will apply from 1 April 2026.

In any event, entitlement to contribution relief remains conditional upon compliance with current legislation on health and safety in the workplace.

 

Additional measures effective from 1 April 2026

It is also provided that, from April 2026:

• in the event of the establishment of an employment relationship or a “co.co.co.” collaboration, mandatory employment notifications may be submitted by the employer via the SIISL platform,
• foreign nationals who have completed vocational education and training courses in their country of origin under programmes approved by the Ministry of Labour and Social Policies, the Ministry of Education and Merit, or the Ministry of University and Research (art. 23, Legislative Decree no. 286/1998) will be registered with SIISL.

The implementing provisions governing the notification requirement — both from an administrative perspective and in relation to the processing of personal data — are to be defined by ministerial decree. This decree, to be adopted after consultation with the most representative employers’ organisations and trade unions, as well as the Permanent Conference for relations between the State, the Regions and the Autonomous Provinces of Trento and Bolzano, was due to be issued by 29 December 2025.

 

General conditions for access to employment-related benefits

Without prejudice to the above, it should be noted that access to statutory and contribution-related benefits under labour and social security legislation — including hiring incentives — remains subject to compliance with the general conditions set out in art. 1, para. 1175 of Law no. 296/2006, namely:

• possession of a valid Social Security Compliance Certificate (DURC),
• absence of breaches of labour and social security legislation, including violations relating to (i) working conditions and (ii) health and safety at work. A detailed list of relevant violations is contained in Annex A to Ministerial Decree of 30 January 2015,
• compliance with national, regional, territorial or company-level collective agreements entered into by the comparatively most representative employers’ and workers’ organisations at national level.

Nova 09/2026

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2025 year-end balance – INPS instructions

With circular message no. 156/2025, INPS clarifies on the year-end adjustment operations for 2025 which private employers are required to carry out not only through the contribution return relating to the month of December 2025, but also through the return relating to January 2026, with the relevant payment deadline set for 16 February 2026.

 

2026 ACI car benefit taxable value rates

Rates used to calculate the taxable benefit in kind relating to the use of company vehicles granted for mixed (work-related and private) use to employees and directors have been published (Notice of the Italian Revenue Agency published in the Ordinary Supplement to the Gazzetta Ufficiale issue no. 297 of 23 December 2025).

Nova 01/2026

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Italian Data Protection Authority – public CCTV footage cannot be used to dismiss an employee

By decision of 23 October 2025, the Italian Data Protection Authority imposed a fine on an employer who had relied on images captured by public CCTV cameras to dismiss an employee who was absent from work.

According to the Authority, footage collected by cameras installed on public roads for urban security purposes cannot be used by an employer to ascertain disciplinary breaches by employees.

 

Paid leave for workers affected by oncological diseases – INPS instructions

With circular message No. 152/2025, INPS sets out the procedures for using the paid hourly leave introduced by art. 2 of Law No. 106/2025. With effect from 1 January 2026, such leave is granted to workers affected by certified oncological, disabling and chronic diseases, whether in the active phase or in early follow-up, where such conditions result in an assessed disability of at least 74%, in order to undergo medical appointments, instrumental examinations, chemical-clinical and microbiological tests, or frequent thermal treatments.

Nova 06/2026

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Special tax regime for ‘inpatriate’ workers – applicability in the case of remote work from Italy

In its reply to Query No. 2/2026, the Italian Revenue Agency has provided clarification regarding the application of the special tax regime for ‘inpatriate’ workers.

Subject to compliance with the requirements set out in art. 5 of Legislative Decree No. 209/2023, the regime may also apply where an individual transfers their tax residence to Italy in order to perform their employment activity remotely (under a ‘smart working’ regime) for a foreign employer.

 

Incentives for new hires – Male/Female gender disparity

By Interministerial Decree of 31 December 2025, the economic sectors and professions have been identified which allow employers to benefit from a contribution relief scheme where, during 2026, they establish an employment relationship – whether fixed-term or permanent – with a female worker of any age who:

• has been without regular paid employment for at least six months,
• performs an activity or works in a profession within an economic sector marked by a gender gap exceeding, by at least 25 percentage points, the average male/female gender gap recorded by ISTAT (art. 4, para. 11 of Law No. 92/2012).

Nova 08/2026

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INPS Treasury Fund: obligation for all employers with a headcount of 60 or more employees

The 2026 Budget Law (art. 1, para. 203, Law No. 199/2025) provides that, for all companies with an average workforce of 60 employees or more, the TFR of workers who have not opted for allocation to a pension fund will no longer remain within the company, but will instead be accrued with the Treasury Fund managed by INPS. As from 2032, the obligation to accrue with that fund will be extended to companies with an average workforce of not less than 40 employees.

We recall that the obligation to pay TFR into the Treasury Fund established with INPS had been limited, from 2007 and until the introduction of this new provision, to companies with a workforce equal to or exceeding 50 employees:

• as at 31/12/2026, or
• at the end of the first year of activity.

Consequently, the provision, in addition to diverting liquidity away from companies to the benefit of INPS, also remedies a distortion inherent in the original structure of the Treasury Fund as initially regulated under art. 1(756) of Law No. 296/2006, which excluded from its scope even large companies lacking the requirement of 50 employees as at 31.12.2006 or at the end of the first year of activity.

RegToDate 01/2026

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ISTAT – Consumer price index for December 2025

By press release of 16 January 2026, ISTAT announced the Consumer Price Index for blue- and white-collar households (FOI), excluding tobacco, for the month of December 2025, equal to 121.5 points.

This index is used to determine the revaluation coefficients applicable to severance pay (TFR) and employment-related receivables.

 

Bonus for Working Mothers – New INPS Service for Reprocessing Rejected Applications

With message no. 147/2026, INPS announced that it has implemented an online service enabling:

• working mothers, provided that they meet the requirements set out in art. 6 of Decree-Law no. 95/2025, as converted (with amendments) into Law no. 118/2025, to submit by 31 January 2026 a new application for access to the so-called “Bonus for Working Mothers” in respect of the months not requested in the previous application, and
• the reprocessing of applications that did not pass the initial checks.

 

Income support allowance – calculation of days of absence from work

With reply to ruling no. 7/2026, Agenzia delle Entrate addressed the method for determining the income supplement granted to employees with an annual income below EUR 20,000, as determined by the 2025 Budget Law (art. 1, para. 4 of Law no. 207/2024).

The Agency clarified that, for the purposes of calculating this supplement – which does not form part of the employee’s taxable employment income – the employer is not required to take into account days for which no remuneration is paid.

 

Special tax regime for ‘inpatriate’ workers also applicable to cross-border workers

With reply to ruling no. 12/2026, Agenzia delle Entrate once again addressed the special tax regime for inbound workers.

Specifically, the Agency confirmed that access to the favourable regime is also available to a worker who, prior to returning to Italy, carried out work activities in Italy while being resident abroad as a cross-border worker.

According to the Revenue Agency, the legislation governing the special regime (art. 5 of Legislative Decree no. 209/2023) does not impose any requirement as to the place where the work activity must be performed during the period of foreign tax residence preceding the transfer of residence to Italy.

 

INAIL self-assessment – new adjustment rates to the average premium for favourable claims experience

With circular message no. 3/2026, INAIL clarified on the provisional application, for 2026, of the new adjustment rates to the average premium based on favourable claims experience, for the purposes of the 2025/2026 self-assessment.

 

Company car benefit – tax treatment

With reply to ruling no. 14/2026, Agenzia delle Entrate has once again addressed the correct tax treatment applicable to a company car granted to an employee for mixed (business and private) use. The criteria for determining the related fringe benefit were significantly amended with effect from 1 January 2025, introducing a graduated valuation based on the vehicle’s type of fuel or power supply.

Specifically, the Revenue Agency clarifies on the tax treatment of the amounts paid by the employee to cover the cost borne by the employer for granting the vehicle for mixed use.

Nova 10/2026

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Parental Leaves – INPS instructions for 2026

With message no. 251/2026, INPS provides operational guidance on the management of parental leave following the new time limit for entitlement introduced by Law no. 199/2025.

With effect from 1 January 2026, employed parents whose children have not yet reached 14 years of age (or, in the case of adoption or foster care, where 14 years have not elapsed since the child’s entry into the family) may take parental leave in accordance with the ordinary individual and joint parental entitlement limits.

Where, between 1 January 2026 and the date on which the online application procedure is updated, it has not been possible to submit a prior application for parental leave allowance to INPS, employees may subsequently submit an application in respect of periods of leave already taken between 1 January 2026 and the date of the procedural update.

 

Business Trips – Management of Expense Reimbursements

By means of Circular no. 15/2025, the Italian Revenue Agency has provided clarification on the rules governing business trips and assignments of employees in force as from 1 January 2025, following the latest legislative amendments introduced by Legislative Decree no. 192/2024 and Law no. 207/2024.

These measures have revised the tax treatment applicable to:

• expenses incurred in connection with business trips or assignments, and the related reimbursements; and
• representation expenses.

Approfondimento 01/2026

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JUS – The Case Law Review Journal

In this first issue of JUS of 2026 we shall focus on:

i. a judgment by the Court of Rome concerning the use of AI within work organisation and the effects that such use may have on the employment relationship, up to and including its termination,

ii. the need to apply the principle of ‘repêchage’ where a vacant position in fact exists within the company,

iii. the relevance of conduct outside the workplace, a matter on which case law has adopted markedly varied approaches,

iv. the use of investigative agencies to ascertain the commission of unlawful conduct.

Jus 01/2026

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Subsequent unfitness for duties – Dismissal void where fitness is temporary

The dismissal of an employee on the grounds of subsequent unfitness for duties is void where the employee has been declared temporarily fit for the role pending a further medical examination (Court of Prato, judgment no. 476/2025).

According to the Court, in such circumstances the employer “could have adopted alternative solutions, including suspension of the employment relationship, but certainly could not resort to the ultimate measure of dismissal”.

 

 

AI and human oversight: is a new managerial role emerging?

by Massimiliano Arlati and Luca Barbieri

AG addressed the topic “Artificial intelligence and human oversight: is a new managerial role emerging?” in an article published by Sole 24 Ore, NT+ Lavoro, authored by Massimiliano Arlati and Luca Barbieri.

The signing of the Agreement of 5 November 2025, through which Confcommercio and Manageritalia renewed the NCBA for executives in the tertiary sector, brought to the fore the issue of artificial intelligence (AI), considered a decisive factor in the company’s digital transformation process.

Acknowledging that “the strength of the tertiary sector lies in the ability of companies and executives to address processes of economic, technological and social transformation, contributing to the competitiveness of the production system and to collective wellbeing”, the Parties recognised the need to establish a permanent Observatory to assess whether amendments should be made to the current job classification framework, “including new strategic professional profiles with high-level skills and responsibilities, also in order to ensure rights, transparency and tools for executives operating in contexts that have been transformed, or are undergoing transformation, as a result of innovative processes, with particular reference to the development of artificial intelligence systems”.

 

Sole 24 Ore, NT+ Lavoro

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‘Maxi-deduction’ – conversion of a fixed-term contract following a business transfer

This article examines the possibility of benefiting from the 20% increase in the labour cost deductible, for the purposes of determining the taxes payable by a taxpayer carrying on a business activity, in relation to an employment relationship initially entered into on a fixed-term basis and subsequently converted into an open-ended contract following the transfer of the contract as a result of a transfer of a business unit.

Labour case study 01/2026

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CONCRATUAL DEADLINES

1

NURSING HOMES (ANPIT) Attendance bonus The NCBA of 26 July 2024 for employees of nursing homes, care services and social and healthcare services introduced, for nursing homes, an annual attendance bonus, to be granted in the absence of second-level bargaining providing for additional/bonus amounts at least equal to or greater than the bonus itself.

BUILDING SECTOR – INDUSTRIAL AND COOPERATIVE COMPANIES (CNEL code F012)

Additional collective bargaining   The NCBA of 28 January 2025 (as supplemented by the Agreement of 28 January 2025 as regards the economic provisions, and by the Agreements of 21 February 2025 and 8 October 2025 as regards the regulatory provisions) for employees of construction and related companies and cooperatives provides that the territorial supplementary agreements to be renewed for the years 2024 and 2025 must take effect no earlier than 1 February 2026.

METALWORKERS – INDUSTRIAL COMPANIES

Union contribution   The NCBA of 22 November 2025 for employees in the private metalworking industry and plant installation sector provides that companies, by posting a notice on the company noticeboard from 1 February to 15 April 2026, must inform employees that, on the occasion of the renewal of the NCBA, the signatory trade unions are requesting from employees who are not union members an extraordinary membership contribution of EUR 30.00 for 2026, 2027 and 2028.   The contribution must be withheld through the June payslip of each of the above years. Companies must distribute, together with the April 2026 payslips, the relevant form allowing the employee to accept or refuse the trade union’s request, which must be returned to the company by 15 May 2026.   Collective welfare   The NCBA of 22 November 2025 for employees in the private metalworking industry and plant installation sector provides that, with effect from 1 January 2026, by June of each year companies must make available welfare instruments with a value of EUR 250.00 to employees. Such amount must in any event be made available by the month of February.

 

ADMINISTRATIVE DEADLINES

16	20	31
Declaration and payment of CASAGIT contribution Employers of journalists and trainee journalists with a subordinate employment relationship are required to pay the contributions due for the previous month and, at the same time, submit the relevant documentation relating to the monthly declaration of employee salaries, prepared in electronic format.	Mandatory communication on the usage of temporary workers Employment agencies performing staff leasing activities are required to report the hiring, extension, transformation, and termination of workers employed during the previous month. The communication must be submitted electronically to the Employment Centre.	LUL payslips   Art. 39, L. 133/2008 Employers must complete the Unified Employment Register (LUL) with data related to their employees for each reference month by the end of the following month.
Monthly tax withholdings Employers, acting as tax substitutes, are required to pay the IRPF (income tax) withholdings on employment income and equivalent earnings.		Individual UNIEMENS data flow Employers already required to submit the contribution report using the DM10 form and/or the EMENS monthly payroll report must communicate payroll and contribution data, along with the necessary information for the implementation of individual insurance positions and the provision of benefits.
INPGI separate management Contracting entities that engage professional journalists, publicists, and trainee journalists registered in the relevant professional lists or registers, who work under a coordinated and continuous collaboration arrangement, must report and pay the compensation provided to collaborators and contribute to insurance payments, including the portion payable by the journalist.		FASI fund contribution Industrial companies employing executives must pay FASI fund contribution related to the first quarter of 2026.
INPS Treasury Fund Ministerial Decree 30 January 2007   Employers with a headcount of at least 50 employees must pay contribution to the INPS Treasury Fund corresponding to the monthly portion of the severance pay (TFR) accrued in the previous month and not allocated to supplementary pension schemes.
Payment of contribution to INPS separate management scheme Art. 2(18), Law 8 August 1995, no. 335 Contracting entities employing door-to-door salespersons and those engaged in “Co.Co.Co.” collaboration arrangements must pay social security contribution to the INPS Separate Management scheme.
INPS contribution for employees Employers must pay INPS contribution related to employees’ wages paid in the previous month.

 

NORMATIVE DEADLINES

16	23	28
INAIL self-assessment Employers are required to notify any reduction in the estimated payroll for 2026. They must also pay the premium arising from the 2025/2026 INAIL self-assessment (either the balance due or the first of four instalments).	Procurement contracts Contractors and subcontractors involved in contracts exceeding EUR 200,000 must submit the receipts of the withholding tax payments made on behalf of their employees for the previous month or, if exempted, a copy of the tax compliance certificate.	Subsidised furlough Employers must submit data required for the payment or settlement of subsidised furlough in case of direct payment by INPS, for periods starting in the previous month.
		CIGO subsidised furlough request for unavoidable events Employers must submit CIGO furlough requests for objectively unavoidable events that happened in the previous month.
		INAIL premium Employers must submit an application, in 2027, for the application of the bonus scheme for the 2026 adjustment, provided that they are compliant with health and safety rules and with the payment of contributions and premiums.

AGPill – Resignation by implicit conduct

By Giovanna Caivano

The new pill of Labour Consultancy is dedicated to “Resignation by implicit conduct” by Giovanna Caivano – Team Manager for International Projects. Law No. 203/2024, in force since January 2025, regulates cases of resignation by conclusive conduct arising from prolonged unjustified absence from work. Under Article 19: if the absence exceeds the period provided by the applicable Collective Bargaining Agreement, or in the absence of contractual rules, more than 15 days, the employer may notify the National Labour Inspectorate, which will assess the accuracy of the notification. A positive outcome results in the termination of the employment relationship by implied will of the employee.

The most controversial issue concerns the calculation of the relevant time limits.
Recent case law has adopted divergent approaches:
1) the Bergamo Court excluded the application of disciplinary dismissal time limits set by Collective Bargaining Agreements (In line with the Ministry’s interpretation);
2) the Milan Court, on the contrary, held that the contractual time limit prevails, even if shorter than the statutory 15 days.

These opposing rulings confirm that the legal framework remains uncertain, pending either a consolidated judicial approach or further legislative clarification.

 

WATCH VIDEO

Payment of TFR to the INPS Treasury Fund: Requirements, Effective Dates and Initial INPS Guidance

Thursday, 19 February 2026 – 2.30 pm to 3.00 pm

During the webinar, Maurizio Vitali and Amedeo Mastromarino Horn will examine the initial clarifications and administrative guidance provided by INPS regarding the new obligation to pay TFR into the INPS Treasury Fund introduced by the 2026 Budget Law.

 

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