Italy’s 2027 budget measures include changes to severance payments for public-sector employees, gradually reducing the delay between leaving work and receiving the first instalment of the TFS, or public-sector severance benefit.
The initial nine-month suspension will be cut by three months each year, reaching zero in 2030. From that year, the maximum amount payable in the first instalment will also rise by €10,000 annually. The objective is to bring public-sector treatment fully into line with the private sector by 2035 for employees leaving work after reaching the statutory retirement age.
The transition away from the existing instalment system will last nine years. According to the information reported, the measure is intended to manage the estimated cost of eliminating the instalments, which the Italian Social Security Institute places at more than €16 billion.
The budget also includes a measure affecting Magistrates’ pay adjustments. Arrears worth €979 million will be paid, while future increases will once again be linked to the weighted average of salary increases across the rest of the public sector. This restores a criterion that had been rejected by administrative judges.
Separately, the public administration is expected to face another year with staff turnover limited to 75% under the 2027 budget measures.
Sources: Il Sole 24 Ore Italia.