Italy's 2024 Budget Law addresses long-standing delays in severance payments (TFS) for public sector employees, following a Constitutional Court ruling that installment-based deferrals violate Article 36 of the Constitution. The reforms aim to phase out delayed payments by spreading costs over multiple budgets while ensuring compliance with legal mandates.
From 2028, the first TFS installment will be paid 6 months after retirement eligibility, reducing the current 12-month delay. By 2030, payments will be made immediately upon leaving the job, eliminating further delays. By 2035, the system will fully transition to single, immediate payments, ensuring public sector employees receive full severance benefits without installments.
The government's strategy balances constitutional obligations with financial sustainability. The 2024 Budget Law introduces these reforms with a phased timeline to ensure compliance. The reform includes a tax bonus of up to €800 for additional salary components in 2027.
The 2024 Budget Law introduces these reforms with a phased timeline to ensure compliance.
The reforms reflect Italy's commitment to addressing systemic delays in severance payments, ensuring workers receive just compensation in a timely manner. The Constitutional Court's ruling on TFS compliance remains a key consideration for the government's reforms.