Politics · Italy · 9 hrs ago
Italy plans to end public workers’ severance pay delays by 2030
Italy’s budget plan sets out a step-by-step end to state workers’ payment delays for their end-of-service benefit, known as TFS.
Employees who qualify in 2027 would wait nine months, while those qualifying in 2028 would wait six months.
The wait would fall to three months for people qualifying in 2029, and there would be no delay from 2030.
The plan addresses a long wait between leaving public service and receiving this payment.
Separately, a new tax code taking effect in 2027 keeps a safeguard for severance pay.
It lets workers use the more favourable income-tax rates and bands if those produce a lower bill; the protection applies to TFR kept with an employer, while TFR paid into pension funds is taxed differently.
The next change to the payment timetable is due in 2027, when the nine-month wait applies.
Italy’s 2026 budget plan would phase out waiting periods for public employees’ severance payments by 2030.
The waiting period would fall from nine months for workers qualifying in 2027 to six months in 2028 and three months in 2029.
No delay is planned for workers qualifying from 2030.
The article describes the payment as Trattamento di Fine Servizio (Tfs), a severance benefit for state employees.
- Who
- Public employees in Italy who qualify for Tfs.
- What
- The budget plan would gradually reduce delays in receiving severance payments, ending the delay from 2030.
- When
- The phase-out begins in 2027 and reaches no delay in 2030.
- Where
- Italy.
- Why
- To overcome long waits for payment of Tfs to state employees.
This story does not have two clearly opposing sides.
Workers qualifying for Tfs will face a nine-month wait.
The waiting period will fall to six months for workers qualifying that year.
The waiting period will fall to three months for workers qualifying that year.
No delay is planned for workers qualifying for Tfs.
- Workers qualifying in 2027
- 9-month wait
- Workers qualifying in 2028
- 6-month wait
- Workers qualifying in 2029
- 3-month wait
- From 2030
- No payment delay planned