The decision comes after cabinet met in Cutro, close to the site of the February 26 shipwreck in which at least 72 people died.
The prison sentence will be raised for those who cause the death of migrants, a point Meloni considers “universal” and applies to traffickers abroad.
Meloni told a news conference that the decree shows the government is "determined to defeat the trafficking of human beings, which was responsible for this tragedy”.
"Our response to what happened is greater firmness," she added.
“... [people need to know] it won’t be convenient to pay smugglers and risk dying.”
Out of the meeting also comes a revision of the system for coordinating sea rescues.
The prime minister reiterated the international aspect of her cabinet’s plans.
"We want to look for the smugglers," she said, "all over the globe”.
She claimed this could be implemented through "bilateral agreements with countries where trafficking is organised".
Meloni believes such agreements would result in "increased legal flows," of migrants, as well as "cooperation and investment in those nations that most cooperate in the fight against international trafficking".
She claims alongside these agreements will be a "communication campaign in the countries of origin to explain how different the reality is from what the criminals tell”.
Most significantly, Meloni said that countries "that help us will have privileged quotas" for entry into Italy.
This initiative comes despite countries such as Afghanistan, where most of the shipwreck victims were from, having governments that don’t want citizens leaving in the first place.
Protesters on Thursday held up signs reading "not in my name" and shouted "shame!" as the ministers arrived.
Some also threw cuddly toys at the passing vehicles, presumably in reference to the children who lost their lives.
Investigators have opened a probe into the shipwreck amid claims rescue operations were negligently delayed.
Critics have accused the government of failing to intervene.
ANSA