Parental leave

Under Italian law, parental leave is compensated by the Italian Social Security Agency (INPS) with an indemnity. From 2024 onwards, employees who go on parental leave, to take care of their children aged 12 or below, will be entitled to an indemnity from INPS amounting to 80% of their salary for the first month of leave and 60% of their salary for the second month (exceptionally, for 2024 only, the second month of leave will be indemnified at 80% of the employees' salary). After the second month of leave, the indemnity will be of 30% of the employees' salary. This enhanced parental leave may be used alternatively by either parent.

Early retirement (so-called "Quota 103")

Employees will be entitled to retire early if, by 31 December 2024, they will be at least 63 years old and have paid social security contributions for 41 years. This early retirement option can also be exercised after 31 December 2024, provided that the abovementioned requirements are met. In particular, employees of the private sector will be entitled to early retirement as of:

• 1 April 2024, if they have accrued the requirements by 31 December 2023.
• Seven months following the accrual of the requirements, where this occurs on or after 1 January 2024.

Early retirement option for women

Women will be entitled to early retirement if, by 31 December 2023, they are at least 61 years old (this age requirement may be reduced by one year for each child up to a maximum of two years) and they paid social security contributions for at least 35 years. In addition to these requirements, the employees must alternatively (i) be recognized as a caregiver for at least six months as of the time of the retirement application; (ii) have a certified reduction of their ability to work of 74% or more; (iii) have been previously dismissed or are employed by a company in a crisis state recognized by the Ministry of Economic Development (in the latter case, the age requirement is lowered to 59 years instead of 61).

Additional special retirement plan

In addition to the above early retirement schemes, until 2024, employees will be entitled to retire early if they are at least 63 years and five months old and they have paid social security contributions in the following terms: (i) for 30 years for unemployed individuals, caregivers, and employees certified reduction of their ability to work of 74% or more; (ii) for 36 years if they performed one or more labor-intensive duties during certain statutorily set timeframes.

Social security contribution discounts for working mothers

For three years, from 1 January 2024 to 31 December 2026, employers will not be required to pay social security contributions for working mothers with at least three children and who are hired on an open-ended basis. This social security contribution discount will be granted until the youngest child turns 18 and within a maximum amount of EUR 3,000 per year. On an experimental basis and only for 2024, the discount will also apply to working mothers with at least two children, until the youngest child turns 10.

Tax discount on company performance bonuses

Limited to performance bonuses paid in 2024 and not exceeding EUR 3,000, the relevant amounts will be taxed with a tax rate of 5% instead of 10%. This tax discount will be granted provided that employees do not have a taxable work income higher than EUR 80,000 in the relevant tax period.

Company welfare

In 2024, subject to prior information to be given to the company's works councils (if any), the following will not be subject to income taxation: (i) goods and services given to employees; (ii) amounts given to employees to pay water, electricity and gas bills, as well as to pay rent and interest on loans to buy their first house.

These tax discounts will have a limit of EUR 1,000 per year, increased to EUR 2,000 for employees with children.

General social security contribution discounts

In 2024, employers will benefit from the following social security contribution discounts:

• 6% if the employee has a monthly compensation not exceeding EUR 2,692 (dividing the gross annual compensation by 13).
• 7% if the employee has a monthly compensation not exceeding EUR 1,923 (dividing the gross annual compensation by 13).