Parental leave regulations have undergone several changes in recent years with the aim of promoting gender equality and enhancing the balance between private life and work among parents. The Budget Law 2024 has strengthened parental leave 2024 compensation by increasing the percentage for an additional month: one of the months of parental leave will be compensated at 60%; this percentage has been raised to 80% only for 2024, alternatively between the two parents.
Regulatory Evolution
The need to adjust the balance between private life and work was mandated by the European Union with Directive EU 2019/1158, which Italy implemented through the Balance Decree (Legislative Decree 105/2022), making substantial changes to parental leave regulations.
The aforementioned decree provided:
- Extension of the duration of leave from 6 to 9 months compensated at 30% of the salary;
- Extension of the duration of leave for a single parent or with exclusive custody from 10 to 11 months;
- Increase in the age threshold of the child to 12 to enjoy compensated parental leave.
Subsequently, Law 197/2022, article 1, paragraph 359, further amended the regulations by increasing the allowance from 30% to 80% of the salary for a month to be taken within the sixth year of the child’s life or entry in case of adoption or guardianship of a minor, and only for parents who have completed a mandatory leave period after December 31, 2022.
For the Year 2024
The Budget Law for 2024 further modifies this measure: from January 2024, for workers with children under 6 years old, whose mandatory leave ends after December 31, 2023, parental leave will be compensated at 80% of the salary for two months, and subsequent periods, to be taken within 12 years of the child’s age, will be compensated at 30% of the salary until a total of 9 months is reached, including the two months compensated at 80%.
The remaining periods of parental leave are not compensated, up to the limit of 10 or 11 months (if the working father exercises the right to abstain from work continuously or fractionated for a period not less than three months), unless the parent has an individual income lower than 2.5 times the minimum pension amount covered by the mandatory general insurance; in this case, they are compensable at 30% of the salary.
The Scenario for 2025
The Budget Law 2024 implies a further modification of the measure for 2025, in particular, for parents who end mandatory leave after December 31, 2024:
- 1 month of leave compensated at 80% of the salary within 6 years of the child’s age;
- 1 month of leave compensated at 60% of the salary within 6 years of the child’s age;
- Additional 7 months compensated at 30% of the salary to be taken within 12 years of the child’s age;
- Additional 2 months until reaching the maximum limit of 10 or 11 months compensated at 30% of the salary to be taken within 12 years of the child’s age, only in case of income lower than 2.5 times the amount of the minimum pension.
Further Clarifications
It is also highlighted that parental leave presents the following characteristics:
- In case of multiple births, adoption, or guardianship, the right to parental leave applies under the same conditions for each child (e.g., in the case of twins, the right to parental leave and related compensation must be understood as duplicated);
- Parental leave is granted to the requesting parent even if the other parent is not entitled to it;
- Parental leave can also be taken on an hourly basis, depending on the specific provisions of the applied collective agreement (including second-level agreements). In the absence of collective bargaining regulating parental leave on an hourly basis, it can be taken hourly at half of the average daily working hours of the weekly or monthly pay period immediately preceding the one in which parental leave begins;
- Periods of parental leave are counted in seniority of service and do not entail a reduction in holidays, rest days, thirteenth monthly salaries, except for additional emoluments related to actual presence in service (unless otherwise provided by collective bargaining);
- For the determination of the basis for calculating the allowance, as provided for by article 23 of Legislative Decree 151/2001, the salary should be understood as the “average daily global amount of the weekly or monthly pay period expired and immediately preceding the one in which maternity leave begins. To this amount should be added the daily proportion relating to the Christmas bonus or the thirteenth monthly salary and other premiums or monthly allowances or additional benefits possibly paid to the worker. The same elements that are considered for the determination of benefits of mandatory insurance for sickness allowances contribute to the salary.
Conclusions
The intervention provided by the Budget Law 2024 on parental leave regulations with the increase in economic coverage should be considered as part of a series of measures aimed at combating low birth rates, improving the work-life balance of both parents, and promoting gender equality. Parental leave translates into one of the main tools for protecting parenthood that working mothers and fathers can resort to.
