Support for employees returning from parental leave: benefits and solutions for employers
The 2026 Budget Law introduces important incentives for companies managing the return of employees from maternity/paternity leave.
The employment contract of replacement staff may now be extended for an additional transition period, up to the child’s first year of age. This allows for a smoother handover, ensuring operational continuity and retention of know-how.
Companies with fewer than 20 employees may also benefit from a 50% reduction in social security contributions for fixed-term hires made for replacement purposes. This incentive is extended to the period following the return of the employee on leave.
INPS has already issued the relevant operational guidelines and, as of January 1, 2026, employers may access contribution relief also for the post-return transition period, regardless of role equivalence, provided that working hours are equivalent.
This measure enables companies to optimize workforce management while benefiting from significant contribution savings.
Tax treatment of scholarships: how to manage benefits and taxation effectively
The Italian Revenue Agency has clarified that scholarships and education-related contributions granted by employers to employees or their family members may benefit from favorable tax treatment. In particular:
- Scholarships granted directly to employees are taxed as employment income.
- Scholarships provided for employees’ family members (under Article 12 of the Italian Income Tax Code – TUIR) may be tax-exempt, provided specific conditions are met.
- Scholarships granted to individuals with no employment relationship with the company are treated as employment-equivalent income.
A correct application of these rules allows companies to enhance employee benefits while optimizing the related tax treatment for both employer and employees.