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Italy's Draft 2026 Budget Extends Parental Leave to Age 14, Incentivizes Hiring of Mothers

The circulating proposal remains provisional pending formal submission to the Senate.

Overview

  • Time off for a sick child would double to 10 days per parent each year, with eligibility expanded to children aged 3 to 14.
  • Private employers would receive full social‑contribution relief up to €8,000 for hiring women who are mothers of at least three minors after six months without regular paid work.
  • Parents with at least three cohabiting children would gain priority to convert full‑time jobs to part‑time until the youngest turns ten, with no limit when a child has a disability.
  • The draft allocates €20 million per year from 2026 to support separated or divorced parents required to leave a family‑owned home, available to those with children up to 21.
  • The version reviewed also proposes revenue changes including raising the flat tax on short‑term rentals to 26%, cutting the IRPEF bracket to 33% up to €200,000, and increasing cigarette excises.