Approved So-called “first of May Labour Decree 2026”

On 28 April this year, the Council of Ministers approved the so-called “First of May Labour Decree 2026”, which introduces a comprehensive package of measures to support incomes and promote stable employment.

Among the main new features:

• three-year incentives and contribution relief for the recruitment of young people and women on permanent contracts, with enhanced measures in Special Economic Zones;
• access to benefits subject to the requirement of a “fair wage”, as defined by the most representative collective agreements;
• in terms of corporate welfare, fringe benefits exempt from tax up to €1,000 or €2,000 are confirmed, with eligible expenses now extended to include domestic utilities and housing.