New obligations to pay severance indemnities to the INPS Treasury Fund
Regulatory summary and effective date
As of 1 January 2026, the Budget Law provides for new contribution obligations for private employers, who will have to pay the portions of severance pay accruing to the INPS Treasury Fund. This provision concerns employees in the private sector for whom art. 2120 of the Italian Civil Code (TFR), excluding domestic employers and employment relationships not regulated by common law.
Privatized public bodies and public economic entities are also included, limited to relationships subject to the discipline of severance pay. Employees of Public Administrations remain excluded, except in special cases.
Who is involved and size thresholds
The obligation to pay concerns employers who reach certain staffing thresholds, calculated on the basis of the annual average of employees in the previous calendar year. These thresholds vary over time:
|
Year |
Average workers in force (previous calendar year) |
|
2026-2027 |
60 |
|
2028-2031 |
50 |
|
From 2032 |
40 |
Practical example: If your company had an average of at least 60 employees in 2025, starting from 1 January 2026 you will be required to pay severance pay to the Treasury Fund. If the threshold is reached during 2026, the obligation will start from 1 January 2027, considering the average of the previous year.
Calculation of the annual average of employees
The annual average is determined by considering all employees (including part-time, counted in proportion to the hour), excluding months of inactivity of the company. The calculation is based only on the months actually worked, ensuring a faithful picture of the employment dimension.
For employers active from 2024, the reference for 2026 is the average number of employees in 2025. For those who started the business in 2025, the average of the year of start applies.
Operational obligations: what the employer must do
Declaration to INPS: Use the SC34 form (available on www.inps.it, “Forms” section) to report the exceeding of the size threshold.
Request authorization code: For DM positions, request the code “1R” (company subject to payment to the Treasury Fund).
Monthly payment of severance pay: Calculate the portion of severance pay (7.41% of the useful salary) for each worker and pay it monthly according to the methods and deadlines of the ordinary social security contribution (by the 16th day of the month following the pay period).
First application: For the portions accrued from January 2026, it is possible to make the payment by 16 May 2026, i.e. within the third month of the publication of the INPS circular.
News on parental leave: new time limits
Extension of the period of use
From 1 January 2026, employed parents can take parental leave within the first 14 years of their child’s life (or 14 years after entry into the family in the case of adoption or foster care), compared to the previous 12 years. For the mother, the period starts from the end of maternity leave; for the father, from the date of birth.
On the other hand, the limits for other types of workers remain unchanged:
Separate management: 12 years of life (or 12 years from entry/adoption).
Self-employed: 1 year of life (or 1 year from entry/adoption).
The new limits apply from 1 January 2026; for periods used until 31 December 2025, the 12-year limit remains valid.
Procedure for submitting an application for parental leave
Electronic application: Use the “Maternity and paternity applications” procedure available on the INPS website to submit the request, according to the new timing.
Correction for previous periods: If it was not possible to submit the prior application between 1 and 8 January 2026, it will be possible to submit it later for the periods already used.
INPS instructions: Refer to INPS message no. 251/2026 for operational details.
Conclusions and operational recommendations
Check the annual average of employees for 2025 and assess whether they fall under the new obligations to pay into the Treasury Fund.
Fill in and send the SC34 declaration to INPS and request the code “1R” if necessary.
Organize the calculations and the monthly payment of the severance pay according to the new deadlines.
Inform your employees about the extension of the time for parental leave and assist them in submitting applications.