The package, which had already received the green light from the Lower House, features benefits to ensure that disadvantaged households which meet certain requirements have a source of income.
Labour Minister Giuliano Poletti said two billion euros each would be earmarked for 2017 and 2018, enabling the government to help some two million people in need.
"We are very satisfied by the approval of the bill on poverty," Poletti said.
Premier Paolo Gentiloni made an announcement on Twitter yesterday, sharing news of the approved law with his followers.
“Law on poverty approved. A step forward to help families in difficulty. Social policy is a government priority," he wrote.
The law, which particularly aims to assist young families, will be implemented over the coming weeks.
With ANSA