It is unlawful to include advance payments of severance pay in monthly paychecks

News Flash No. 14/2025

The National Labor Inspectorate, in its memorandum No. 616/2025, has clarified that it is not permissible to include monthly installments of severance pay in paychecks, except in the cases provided for by law.

In particular, it should be noted that the legislation that had introduced the so-called “QUIR” (supplementary pay component, introduced in 2015 through a mechanism that allowed eligible private-sector workers to receive monthly payments of their severance pay) no longer exists.

Law No. 190/2014 (the so-called 2015 Stability Law) had in fact introduced the measure only on a trial basis and was in effect from March 1, 2015, through June 30, 2018.

The measure therefore no longer exists, as the legal provision that had introduced it on a trial basis has expired and has not been extended.

Any advance payment of severance pay included in a paycheck must comply with the provisions of Article 2120 of the Civil Code.

In this context, the Inspectorate reiterates that a collective or individual agreement may concern an advance payment of the accrued accrual at the time of the agreement, rather than a mere automatic transfer to the paycheck of the monthly accrual, which, in this case, would constitute a mere supplement to wages, with consequent implications also in terms of social security contributions.

Any payment made outside the circumstances provided for in Article 2120 of the Civil Code therefore constitutes a violation of the law.

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