Italy debates tax incentives for youth wages and female employment

Italian political parties are debating various measures to address female employment and youth wages as part of upcoming budget discussions. The governing majority credits recent policies for raising female employment to 54%, with Fratelli d'Italia proposing further reductions in childcare costs and extended school hours to support working parents.

Forza Italia is advocating for support for caregivers and tax relief for self-employed women and freelancers. Meanwhile, the opposition emphasizes the need for equal parental leave to achieve true gender parity in the workforce.

Regarding youth employment, Economy Minister Giancarlo Giorgetti has introduced a proposal for the 2027 Budget. The plan suggests a preferential tax rate on salary increases granted to young workers by companies. This mechanism aims to incentivize businesses to raise wages for entry-level employees by applying a substitute tax lower than standard Irpef rates. Additionally, there is ongoing discussion regarding raising the threshold for the flat tax regime for VAT holders from 85,000 to 100,000 euros.