Italy’s government proposes pension funds for children, longer parental leave, and vouchers for self-employed workers

Italy’s government approved on October 28, 2026, the draft budget law for 2027, which includes measures to support families, the birth rate and work-life balance. The draft, worth approximately €26 billion, is due to be debated and voted on in Parliament, meaning its provisions may be amended.

One of the main new measures is the creation of a pension fund for every child born from 2027 onward. The state would deposit €100 annually into an account managed by INPS until the child turns 18. The public contribution would reach €1,800, to which voluntary family contributions could be added. The money could be used for education or converted into a supplementary pension.

The budget also proposes extending parental leave paid at 80% of salary: four months for the first child, five for the second and six for the third or any subsequent children. The periods would have to be used during the child’s first six years of life.

Self-employed parents could receive a voucher of up to €1,500 for childcare services. Regarding pensions, early retirement at age 64 is being considered, although the conditions have not yet been established. The measure could reduce the pension amount by recalculating it exclusively on the basis of contributions.