Formula 1 Cost Cap Revisions: Maternity Leave and Employee Entertainment Excluded
In a move to alleviate concerns among Formula 1 staff, the FIA has confirmed that maternity leave and employee entertainment will remain outside the revised cost-cap system in 2026. This development is a significant one, as it addresses the concerns of team staff who were worried about the impact of the cost cap on their benefits.
Introduced in 2021, the cost cap aims to level the playing field in Formula 1 by keeping all 10 teams to a spending limit. The current cap stands at approximately $135 million, with plans to increase it to $220 million in 2026. The FIA has expanded the scope of the cost-cap framework to include more items, sparking some resistance from teams.
“During the discussion with teams, a range of exclusions, including maternity/paternity leave and entertainment, were considered for being included in the perimeter of the cost cap,” explained FIA Head of Single Seater Financial Regulations Federico Lodi. “But during the last F1 Commission meeting, it was unanimously agreed that these costs should remain excluded from the perimeter of the cost cap.”
Red Bull Team Principal Christian Horner welcomed the move, highlighting the need to strike a balance between cost control and staff welfare. “I think it’s a matter of striking a balance,” Horner said. “I think there’s been a huge amount of learning through the cost cap. And I think that what I think is the most important thing for 2026 is that the employees don’t bear the brunt of those changes.”
Sauber Team Representative Alessandro Alunni Bravi also raised an important point, citing the increased cost of living in Switzerland where Sauber is based. He hopes the new cost-cap can strike a balance that doesn’t negatively affect his team.
As the Formula 1 cost cap continues to evolve, it’s clear that finding a balance between cost control and staff welfare will be crucial. The FIA’s decision to exclude maternity leave and employee entertainment from the cap is a positive step, and one that will be closely watched by teams and staff alike.
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The revised cost-cap system aims to simplify the regulation and include more parameters. Matters of inflation and the growth of the F1 calendar are also factors at play. With the 2026 season on the horizon, all eyes will be on how the cost cap evolves and its impact on the sport.
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