2026 Budget approved by Italian Government: more funds for families, jobs, and businesses

Meloni: “This is a serious budget, focused on four priorities: family, tax cuts, business support, and healthcare.” New benefits for working mothers, tax relief, and productive investments on the way.

The Italian Council of Ministers has approved the 2026 Budget Law. Prime Minister Giorgia Meloni, speaking at a press conference, described the measure as “serious and consistent with our established priorities”: support for families and birth rates, tax reduction, business aid, and healthcare investment.

For families, the government is allocating an additional €1.6 billion. The bonus for working mothers will increase from €40 to €60 per month, and primary residences will be excluded from the ISEE income calculation, within a certain cadastral value limit.

On the tax front, the Irpef cut for middle-income earners (up to €50,000) is confirmed, with a cost of €2.8 billion, while €1.9 billion will go toward reducing taxes on productivity bonuses and holiday/night shifts.

To tackle low wages, the budget encourages contract renewals for incomes up to €28,000, applying a reduced 5% tax rate on salary increases. “Wages are finally growing faster than inflation,” Meloni noted, in response to a recent appeal by President Mattarella on the issue of salaries.

For businesses, about €8 billion in investments are planned, along with the return of the super and hyper depreciation schemes. A 120% tax deduction on labor costs is introduced for new hires, rising to 130% for disadvantaged groups. The sugar and plastic tax suspensions are extended through the end of 2026, and the "Nuova Sabatini" business investment program is refinanced.

Budget coverage will largely come from spending cuts in ministries and the Prime Minister’s office, alongside a “significant contribution” from banks and insurance companies — though there will be no windfall tax.

Minimum pensions will increase by €20 per month, and the new tax amnesty (“rottamazione”) will last nine years with bimonthly payments.

Economy Minister Giancarlo Giorgetti reassured that the impact on the banking sector is sustainable and emphasized that Parliament will now debate and potentially amend the proposal.