Politics · Italy · 16 hrs ago
Italy plans faster severance payments for retired public employees
Italy’s 2027 budget plan would speed up end-of-service payments for public employees who retire.
The payment, known as TFS, is a severance benefit that public workers receive when they leave work, while private-sector workers generally receive a similar benefit sooner.
Under the plan, eligible public employees would wait six months in 2028, down from nine months.
The wait would fall to three months in 2029, and from 2030 the payment would be due when workers retire at the age limit.
The plan would also phase out instalments, raising the amount that can be paid in one sum from €60,000 in 2031 to €90,000 in 2034.
From 2035, retired public employees would receive the full TFS payment at once when they leave work.
The changes are intended to address long delays that Italy’s Constitutional Court has said need to be resolved, while phasing them in to limit pressure on public finances.
Italy’s 2027 budget plan would shorten the wait for public employees’ severance payments when they retire.
The waiting period would fall from nine months to six months in 2028 and to three months in 2029 for those who meet pension requirements by that year’s end.
From 2030, eligible employees retiring at the age limit would receive the payment when they leave work.
The plan would gradually raise the amount eligible for payment in one lump sum, ending instalments in 2035.
The changes aim to reduce the difference between severance payments for public employees and private-sector workers.
- Who
- Retired employees of Italy’s public administration.
- What
- A budget plan would speed up severance payments and phase out instalments.
- When
- The changes would begin in 2028, with instalments due to end in 2035.
- Where
- Italy.
- Why
- The plan aims to reduce delays and narrow the difference between public- and private-sector severance payments.
This story does not have two clearly opposing sides.
Italy’s Constitutional Court issued ruling number 130, calling on lawmakers to address delays in public employees’ severance payments.
The Constitutional Court issued order number 25, again urging an end to instalments and calling for a phased transition.
The proposed waiting period would fall from nine months to six months for employees who meet the requirements.
The waiting period would fall to three months for employees who meet pension requirements by the end of the year.
Eligible employees retiring at the age limit would receive their payment when they leave work.
The plan would end instalments, with retired public employees receiving the full payment when they leave work.
- Starting year
- 2028
- Waiting period in 2028
- Six months, down from nine
- Waiting period in 2029
- Three months
- Lump-sum threshold in 2031
- €60,000
- Lump-sum threshold in 2034
- €90,000
- End of instalments
- 2035