Conditions for Access to Statutory and Social Security Incentives
With Circular No. 150 of 16 December 2025, INPS provided guidance on the conditions governing entitlement to statutory and social security incentives in employment and social security matters, pursuant to Article 1, paragraph 1175 of Law No. 296/2006, as amended by Article 29, paragraph 1 of Decree-Law No. 19/2024.
INPS recalls that Article 29 amended paragraph 1175 by broadening the conditions for access to the statutory and contribution-based incentives provided under labour and social security legislation, expressly including the absence of violations relating to the protection of working conditions, as well as health and safety in the workplace, as identified by a decree of the Ministry of Labour and Social Policies.
In addition, new paragraph 1175-bis was introduced, according to which the right to statutory and contribution-based incentives is preserved following the subsequent regularisation of contribution and insurance obligations, within the deadlines set by the supervisory authorities. The provision also establishes a maximum cap on the amount recoverable in the event of non-regularisable administrative violations.
The Circular outlines:
- the amendments introduced by Article 29, paragraph 1 of Decree-Law No. 19/2024 to the rules governing access to statutory and social security incentives;
- the procedures for debiting contribution omissions/evasions resulting from regularisable violations of contribution and insurance obligations, or for contesting administrative violations that cannot be remedied;
- the recovery timelines and amounts payable by employers.
The conditions for accessing incentives are as follows:
- Possession of a valid DURC (Single Regularity Certificate): in the event of irregularities, recovery of the benefit applies to all employees of the company;
- Compliance with statutory provisions, collective agreements and collective bargaining agreements at any level: any violations result in recovery of the incentives enjoyed by the employer only with respect to the employees concerned by the violation and for the period during which the violation occurred;
- Absence of violations of labour and social security legislation, including those relating to the protection of working conditions and health and safety in the workplace, as identified by a Decree of the Ministry of Labour: this requirement is verified through the “Portal of Undeclared Work”.
With reference to the new paragraph 1175-bis of Article 1 of Law No. 296/2006, INPS clarifies that statutory and contribution-based incentives already enjoyed by the employer are not subject to recovery if the employer regularises the issues identified in the inspection report within the time limits indicated by the supervisory bodies, in accordance with specific legal provisions.
In cases where a debt position is identified ex officio by the collecting authorities or following inspection activity, new letter b-bis) introduced in Article 116, paragraph 8 of Law No. 388/2000 provides that payment of contributions in a single instalment within 30 days of notification, or by instalment plan (provided that the application is submitted within the same deadline, the first instalment is paid and subsequent instalments are paid in full and on time), results in a 50% reduction of civil penalties.
With regard to non-regularisable administrative violations, recovery of incentives—applicable to benefits granted for all employees—corresponds to twice the amount of the sanctioned penalty recorded in the inspection report.
Finally, INPS confirms that employers are still required, for incentive purposes, to self-certify to the competent Labour Inspectorate (ITL) the absence of violations preventing the issuance of a valid DURC.
Additional Paid Leave for Employees with Oncological or Invalidating Conditions – INPS Instructions
With Circular No. 152 of 19 December 2025, INPS provided operational guidelines for the implementation of Article 2 of Law No. 106/2025, concerning the use of paid leave for medical visits, diagnostic tests and treatments for private-sector employees insured with INPS who are affected by oncological, invalidating or chronic illnesses. The Circular also sets out the rules for the related economic allowance and provides instructions for UniEmens payroll reporting.
The provision establishes, as of 1 January 2026, the right to additional paid leave for:
- employees of public or private employers affected by active oncological diseases or in early follow-up phases, or by invalidating or chronic (including rare) illnesses entailing a certified disability level of at least 74%;
- employees of public or private employers with a minor child affected by active oncological disease or in early follow-up phases, or by invalidating or chronic (including rare) illnesses with a certified disability level of at least 74%.
Eligible employees are entitled, in addition to existing statutory and collective agreement protections, to an additional 10 hours of paid leave per year for medical visits, diagnostic tests, clinical and microbiological analyses and frequent medical treatments.
Economic Treatment and Application Procedure
The additional 10 hours of leave are compensated through an economic allowance, which in the private sector is paid directly by the employer and subsequently recovered through payroll offsetting.
From 1 January 2026, employees intending to use the additional leave must submit a request directly to their employer. INPS specifies that leave can only be taken in full hours, not in fractions of an hour.
At the time of the request, employees must declare—according to procedures defined by the employer and in compliance with data protection rules—that they meet the statutory requirements, namely:
- a medical prescription issued by a general practitioner or specialist practising in a public or accredited private healthcare facility;
- recognition of a civil disability level of at least 74%.
Once the leave has been taken, employees must provide the employer with certification issued by the healthcare facility where the prescribed services were performed.
The Circular further clarifies that employees requesting leave for a minor child affected by the above conditions are entitled to 10 hours per year, irrespective of whether they have already used the benefit for themselves.
The entitlement to 10 annual hours per child is not affected by whether the other working parent has already used the benefit. In cases involving multiple minor children, each working parent is entitled to 10 hours per year for each child.
The same declaration and certification obligations apply in cases of leave taken for a minor child.
Instalment Payment of Social Security Contributions
Article 23 of the so-called “Labour Linked Act” (Law No. 203/2024) introduced new options for instalment payment of social security contribution debts still at the administrative stage with INPS and INAIL, up to a maximum duration of 60 months as of 1 January 2025. However, implementation was pending the issuance of an implementing decree, which was signed in October 2025 and subsequently published in the Official Gazette.
As in the past, the provision applies exclusively to debt positions not yet assigned to collection agents.
Two debt thresholds are provided, each with a corresponding maximum extraordinary instalment plan:
- debts up to EUR 500,000: maximum 36 monthly instalments;
- debts exceeding EUR 500,000: maximum 60 monthly instalments.
Eligibility for extraordinary instalment plans requires the existence of a temporary and objectively verifiable financial difficulty, meaning that immediate full payment would be unsustainable due to cash flow constraints or specific balance sheet conditions. Such financial difficulty must be properly documented.
Employers already subject to an existing instalment plan may apply for a second instalment arrangement.
Cash Reimbursement of Taxi Expenses
Article 1, paragraph 81, letter c) of the 2025 Budget Law introduced specific traceability requirements for the full deductibility and non-taxability (for employees) of itemised reimbursements of business travel expenses.
To comply with these requirements, employers have implemented internal procedures requiring employees to use traceable payment instruments for meal, accommodation, travel and transport expenses incurred through non-scheduled public transport services. The Italian Revenue Agency addressed this matter in Ruling No. 302/E/2025 concerning taxi expense reimbursements.
The Agency reiterated that Article 51, paragraph 1 of the Italian Income Tax Code (TUIR) provides that employment income includes all amounts and benefits received in connection with the employment relationship, including expense reimbursements, subject only to the specific exemptions provided by law.
Article 51, paragraph 5 of the TUIR governs the tax treatment of travel allowances and reimbursements for duties performed outside the employee’s normal workplace.
In the case of itemised reimbursement of travel expenses outside the municipal territory, documented expenses for meals, accommodation, travel and transport—including taxi fares—do not constitute taxable income provided that payments are made using traceable instruments (bank or postal transfer, debit/credit cards, or mobile payment applications linked to a current account).
The use of traceable payment methods is therefore a mandatory condition for such reimbursements to remain non-taxable.
Pursuant to Article 29, paragraph 1 of Presidential Decree No. 600/1973, employers must apply withholding tax at source on taxable employment income.
Accordingly, where taxi services are used within the Italian territory and paid in cash, the related reimbursement constitutes taxable employment income, subject to withholding at the employee’s marginal tax rate.