Parental Leave Update: 80% allowance for the first three months only under specific conditions

With Circular no. 95 of May 26, 2025, INPS incorporated the changes to parental leave introduced by Article 1, paragraph 179, of Law no. 213 of December 30, 2024 (2025 Budget Law), which amended Article 34 of Legislative Decree no. 151/2001. The new provisions apply exclusively to employees, excluding self-employed workers and those registered with the INPS Separate Management scheme.

New allowances

As of January 1, 2025, allowances for the first three months of parental leave have been significantly increased. The first month remains set at 80% of the salary, as already established under 2023 regulations. The second month, previously compensated at 60%, is also raised to 80%. The third month, which until 2024 provided an allowance of 30%, will now also be covered at 80%. The amendment introduced by the 2025 Budget Law does not add additional months of paid parental leave, but solely increases the allowance for the first three months.

Start date and conditions

The new allowance rates apply to parents whose maternity or paternity leave ends after December 31, 2024. The parental leave must be taken within the first six years of the child’s life, or within six years of entry into the family in case of adoption or foster care. It is therefore essential to consider both the birth or entry date of the child and the end date of the mandatory leave, which represents the key condition for eligibility for the increased allowance.

Duration, distribution, and compatibility

The maximum duration of parental leave remains ten months in total for both parents, extendable to eleven months if the father takes at least three months. The three months with 80% compensation can be used by only one parent or split between both, even overlapping. After these three months, the next six remain payable at 30%, while any additional months are unpaid unless specific income requirements are met.

Application process

To obtain the benefit, an online application must be submitted through the official INPS channels. Applicants may use the Institute’s online portal or contact accredited patronage services.

Operational instructions

The circular also includes key operational guidance for employers. To align payrolls with the new measures, employers must carry out reimbursement adjustments for retroactive allowances from January 1 to June 30, 2025. These adjustments will be managed via the contribution reports for July, August, and September 2025, following technical instructions that will be issued in a dedicated communication.