Italy introduces new business incentives and work-life balance tax relief

The Italian government has implemented new measures to revise the corporate incentive system and promote work-life balance. Legislative Decree no. 138 of June 26, 2026, was published in the Official Gazette to create a more organic and effective incentive framework for businesses by limiting the total number of incentives offered.

Additionally, under Law no. 112 of June 28, 2026, companies that invest in employee well-being can access social security contribution relief. This benefit allows for a reduction of up to 1% in employer contributions, capped at 50,000 euros per company. To qualify, businesses must obtain certification demonstrating they have adopted formal policies to support work-life balance, such as smart working, flexible hours, or family welfare plans.

The relief is available from June 28, 2026, until December 31, 2028. Eligibility is tied to compliance with the UNI/PdR 192/2026 organizational standard, which requires companies to move beyond one-time bonuses toward structured, long-term organizational policies.