Italy
Executives of the trade sector - Renewal of the “Dirigenti Commercio” NCBA
Impact date: 1 January 2026 On 5 November 2025, the National Collective Bargaining Agreement (“NCBA”) for executives of the Trade Sector was renewed. The new agreement will be valid from 1 January 2026 to 31 December 2028. The most significant provisions include:
- a gradual increase in the minimum monthly base salaries, totaling €800 over the next three years (i.e. 2026, 2027 and 2028)
- an annual corporate welfare benefits equal to €1,500 during the three-year period 2026–2028
- the contribution to the complementary pension Fund (the so-called “Fondo Mario Negri”) has been increased for both employers and employees
- the insurance coverage to the fund with insurance and welfare nature (the so-called “Associazione Antonio Pastore”), has been increased to €560 gross
- measures to support active ageing, such as mentoring roles for executives close to retirement
- a contribution of €2,000 to the CFMT platform (the so-called “Piattaforma Welfare CFMT”) for each executive dismissed
Employer implications/action needed Employers must comply with the new provisions of the collective agreement concerning the terms and conditions for executives of the trade sector.
Employer risk Failure to comply with the new NCBA may result in claims for damages brought by executives, as well as union actions for anti-union behavior.
Budget Law 2026 (Law No. 199/2025)
Impact date: 1 January 2026 Law No. 199/2025 (published on 30 December 2025) introduces several employment, tax and social security measures for 2026–2028.
Below is a summary of the key updates relevant for employers:
- personal income tax (IRPEF) reform: the 35% tax bracket (€28,000–€50,000) is reduced to 33%. For income above €200,000, certain tax deductions are reduced by €440 (with limited exceptions)
- collective agreement salary increases: a 5% substitute tax applies to salary increases under collective agreements signed between 1 January 2024 and 31 December 2026, for private employees earning up to €33,000 (reference year 2025)
- performance bonuses and profit-sharing: for 2026–2027, the substitute tax is reduced to 1% (from 5%), with an increased annual cap of €5,000 (from €3,000), for employees earning up to €80,000 (reference year 2025)
- night, holiday and shift work: for tax year 2026, a 15% substitute tax applies to related allowances, up to €1,500 per year, for employees earning up to €40,000 (reference year 2025), excluding the tourism/hospitality sector
- tourism and hospitality sector: a 15% special additional allowance for night and holiday overtime is confirmed from 1 January to 30 September 2026
- meal vouchers: the tax-free threshold for electronic meal vouchers increases from €8 to €10
- employee share plans: 50% IRPEF exemption on dividends from shares granted in lieu of performance bonuses is extended (up to €1,500 per year)
- part-time priority: parents with at least three dependent children are granted priority for conversion from full-time to part-time, with a 100% social security exemption for up to 24 months
- parental leave and child sickness leave: the child age limit increases from 12 to 14 years; child sickness leave increases from five to ten days per year
- fixed-term contracts for maternity replacement: extension allowed for handover purposes within the child’s first year
- hiring incentives: 100% social security exemption (up to €8,000 per year) for hiring unemployed mothers with at least three minor children (subject to income limits)
- supplementary pensions: deductibility ceiling increased to €5,300 per year from 1 July 2026
- pensions: gradual increase in retirement age (67 years + one month in 2026; 67 years + three months in 2028). No renewal of “Opzione Donna” and “Quota 103”
- TFR (severance accruals): broader obligation to transfer TFR to the INPS Fund for larger employers; reduced silent-consent period (60 days) for new hires from 1 July 2026 for allocation to pension funds The employer is required to provide full and clear information to the employee at the time of hiring
Employer implications/action needed Employers must ensure compliance with the new provisions.
Employer risk Failure to comply with the new provisions (e.g., substitute tax regimes, contribution exemptions or TFR allocation rules) may result in tax adjustments, administrative sanctions, and social security claims.
Link Budget_Law_2026
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