Paid Parental Leave in Australia vs Maternity, Paternity and Parental Leave in Italy

Australia funds parental pay mainly through a government payment, Parental Leave Pay, set at the national minimum wage, while the NES give unpaid job-protected leave. Italy’s system is also funded publicly through INPS, but the payments are a percentage of the employee’s own salary, maternity leave is compulsory, and the employer advances the payment through payroll. Full comparison on Italy vs Australia .

Australia: Parental Leave Pay and NES parental leave  

Parental Leave Pay (Services Australia) is paid under the Paid Parental Leave scheme to eligible parents who meet the income, work and residence tests:

• Rate: $200.94 a day before tax, or $1,004.70 per 5-day week, for 2026–27, based on the national minimum wage.
• Length: for children born or adopted from 1 July 2026, a family can get up to 130 days (26 weeks); it was 120 days from 1 July 2025 and 110 from 1 July 2024.
• Flexibility: days can be taken in blocks or single days and shared between parents, with some days reserved for the partner.
• It is taxable and usually paid by the employer, which receives the funds from the government.

Under the NES, employees can take unpaid parental leave with job protection . Employer-paid parental leave above the scheme is a matter of policy or agreement.

Italy: maternity, paternity and parental leave  

Under D.Lgs 151/2001:

• Maternity leave (congedo di maternità): 5 months, compulsory, normally 2 months before and 3 after the birth (or 1 + 4, or all 5 after birth with medical approval). INPS pays 80% of pay; most CCNLs require the employer to top up to 100%. The employer advances the payment in payroll and offsets it against INPS contributions.
• Paternity leave (congedo di paternità): 10 working days at 100%, compulsory, within two months before and five months after the birth.
• Parental leave (congedo parentale): up to 9 months in total between the parents at 30%, of which 3 months at 80% if taken within the child’s sixth year; usable until the child is 14 from 2026. Each parent has individual non-transferable months.
• Breastfeeding rest: two hours a day of paid rest (one for part-time under six hours) during the child’s first year.

The employee also accrues leave, 13th month and TFR during compulsory maternity leave.

Protection from dismissal  

Dismissal is void from the start of pregnancy until the child turns one, except for very limited cases such as closure of the business or serious misconduct. Resignation in that period must be validated by the labour inspectorate. Australia also protects against adverse action, but the Italian rule is an outright ban with very few exceptions.

Side by side  

Cost for the employer  

In Australia the government funds Parental Leave Pay; the employer’s cost is any top-up policy and backfilling. In Italy INPS funds most of it too, but the employer usually pays the CCNL top-up from 80% to 100%, keeps accruing TFR and the 13th month, and cannot dismiss. Budget for a temporary replacement on a fixed-term contract, which is allowed specifically to cover maternity.

Common questions from Australian companies  

Can an employee waive maternity leave? No. Compulsory leave cannot be waived.

Do we pay the employee directly? Yes, through payroll, and the amount is recovered from INPS contributions. With an EOR, it happens in the EOR’s payroll.

Is there a flexible return-to-work right? Parents of children under 12 have priority for smart-working requests, and part-time conversion rights apply in some cases.

Planning ahead as an Australian employer  

An employee in Italy will usually tell you about a pregnancy early, because protection and compulsory leave depend on the expected date of birth. From that point, plan the handover, the replacement and the return. Italian law also protects pregnant employees from risky tasks and night work, so check the role description with the health and safety adviser (RSPP) who supports the employer. During compulsory maternity leave the employee must not work, even remotely or occasionally, so remove access to work tools if needed and avoid asking for help on urgent matters. After the return, the employee may combine parental leave, breastfeeding rest and holiday, which can reduce availability for the first year. A clear plan for workload and a temporary replacement on a fixed-term contract makes the period predictable for the whole team. Fathers should be encouraged to take their 10 compulsory days, which are also non-waivable, and any parental leave months they are entitled to.

What this means if you hire through an EOR  

The EOR handles INPS applications, advances maternity pay, applies the CCNL top-up, arranges the replacement contract if you need one and makes sure no unlawful termination happens. See the Italian employment contract , other countries , the cost calculator or contact us .

Related guides for Australian companies  

• Annual, personal and long service leave vs Italian leave
• Superannuation and PAYG vs INPS and IRPEF
• Unfair dismissal in Australia vs dismissal rules in Italy

General information, not legal advice.