Understanding parental leave laws in Italy: rules and employer duties

For business owners expanding their teams in Italy, it is essential to understand everything about employee benefits. Managing parental leave in Italy presents a complex but essential responsibility for employers. Italy’s labour laws grant significant protections and benefits to parents, reflecting the country’s commitment to supporting family life. With multiple leave types, including maternity, paternity, and optional parental leave, employers must navigate eligibility criteria, timing, pay systems, and legal safeguards.

This guide will help you understand your obligations, avoid pitfalls, and consider how an Employer of Record (EOR) can ease compliance, especially if your organisation lacks an Italian legal entity.

Parental leave categories in Italy: overview

Italy provides three main types of parental leave. Maternity leave is mandatory and highly regulated, while paternity leave is shorter but still compulsory. Optional parental leave, also known as Congedo Parentale, is available to both parents and offers flexible benefits until a certain age of the child. Each type carries different eligibility and administrative responsibilities, requiring clarity and proactive planning from employers.

Maternity leave in Italy: what employers need to know

Maternity leave typically spans five months, consisting of two months before the expected date of birth and three months after. Women may choose to take leave closer to delivery if supported by a medical certificate. During this time, Italian law protects the employee’s job status and prohibits dismissal except for justified economic reasons.

Payment during maternity leave is primarily handled by INPS, the Italian social security agency, which covers 80% of the gross salary. Employers must verify leave eligibility, process leave notifications, and ensure that their payroll systems accurately account for maternity benefits. They must also continue contributions and maintain all employee benefits throughout the leave period.

Paternity leave in Italy

Since 2019, Italian law grants fathers 10 days of compulsory paternity leave, to be taken around the time of childbirth, either before or after. This paid leave is funded entirely by INPS (Istituto Nazionale della Previdenza Sociale) and is intended to promote shared parenting responsibilities and early bonding with the newborn.

Employers play a key role in the process. They must collect and record the employee’s formal leave request, update payroll systems accordingly, and coordinate with INPS to ensure that benefits are paid out correctly.

Accurate documentation is essential, both for legal compliance and for ensuring the father receives his entitled pay. Employers are also responsible for safeguarding the employee’s position during this period, meaning the father has a right to return to the same role under the same conditions. Failure to comply may lead to disputes or penalties, so it’s essential to have a transparent process in place.

Optional parental leave (Congedo Parentale)

Optional parental leave allows either parent (or both in turn) to take up to six months of unpaid leave (or nine months if not shared) while caring for a child under 12. During this period, INPS contributes 30% to 50% of the employee’s salary, depending on the circumstances.

The leave must be taken in blocks lasting at least 15 days, and employers must respond to leave requests, maintain employment conditions, and continue benefits like pension contributions. Missteps, such as failing to reinstate the employee afterward, spark compliance issues and create legal risk.

Employer responsibilities and compliance

Italian employers bear administrative duties that extend beyond simply accepting leave. Leave requests must be formalised in writing and communicated to INPS within deadlines. Employers should not only maintain benefits and compensation continuity but also enforce non‑discrimination.

Failing to do so, whether by denying leave, making rehiring conditions worse, or penalising employees for taking leave, can result in hefty fines or legal action. Common mistakes include miscalculating leave periods, failing to reinstate positions, incorrect benefit calculations, or misunderstanding INPS processes.

How an Employer of Record ensures compliance with parental leave laws

When you don’t have an Italian legal presence, staying compliant across parental leave obligations can be daunting. An Employer of Record (EOR) takes on legal employer responsibilities, ensuring you meet all Italian leave rules without needing your own entity. The EOR manages entitlements for your employees in Italy, such as maternity or paternity leave, processes leave notifications, handles INPS filings, and makes accurate payroll adjustments. They also monitor usage of optional parental leave, ensure job protection, and manage return‑to‑work arrangements.

5 best practices for managing parental leave in Italy

Managing parental leave effectively is crucial for ensuring compliance and maintaining workforce stability in Italy. With strict labour protections and detailed procedures, employers must be proactive to support both the business and the employee. The following best practices can help you meet legal obligations while fostering a supportive workplace culture.

1. Establish clear leave policies and processes for your workforce.
2. Maintain a real‑time tracker of entitlement and leave taken.
3. Prepare coverage plans in advance to ensure teams remain supported.
4. Ensure your systems manage pay adjustments, contracts, and benefits accurately during periods of leave.
5. Conduct a reintegration meeting to ensure a smooth transition post-leave.

By implementing these practices, from setting clear policies to planning reintegration, you’ll ensure your company handles parental leave professionally, lawfully, and respectfully. A structured approach minimises disruption and shows your commitment to employee wellbeing and compliance with Italian labour law.

Always stay compliant with Italian EOR

Employer compliance with parental leave law in Italy means more than fulfilling legal obligations; it shows respect and support for employees at a critical time in their lives. With complex leave types, statutory protections, and administrative burdens, partnering with a trusted Employer of Record can significantly reduce your risk and administrative load.

Contact us to learn more about how EOR can help you remain compliant, respectful, and prepared to support employees through one of life’s most impactful experiences.