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Overview
Euro (EUR)
CURRENCY
Rome
CAPITAL
monthly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
29.40 to 32.40
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Italy
Employer
Company Payroll Contributions
29% - 32%
Social Security
0.40% - 0.40%
Injuries at Work Insurance (INAIL)
29.4% - 32.4%
Total Employment Cost
Employee
Worker Payroll Contributions
10%- 0%
Social Security
10% - 0%
Total Employee Cost
Employee Income Tax in Italy
Worker Income Tax
23%
Up to 15,000 EUR
25%
15,000 – 28,000 EUR
35%
28,000 – 50,000 EUR
43%
Over 50,000.01 EUR
Payroll Contributions in Italy
Payroll Cycle
In Italy, paychecks are usually awarded on the 27th of every month on a monthly basis.
13th Salary
Salary assessments are provided in 13 monthly installments in accordance with Italian legislation. Each year, the “tredicesima”, or 13th installment, is paid concurrently with the December salary.
A 14th monthly installment, typically paid in June, is also included in some NCAs.
Employee Benefit in Italy
- Allowance for cell phones.
- Meal coupons.
- For each working day, electronic vouchers with a value of up to € 8 apiece are tax-free.
- Paper vouchers with a daily value cap of €4 that are tax-free.
- Supplementary donations for health care.
- Car stipends.
- Wellness Bonus.
Visa and work permit in Italy
Any foreign national entering Italy with the intent to work needs a work visa, a residence visa, or a D-Visa, which permits entrance within 8 days of arrival. However, in order to stay in Italy, you must have a residence permit (permesso di soggiorno). The Immigration Office (Sportello Unico d'Immigrazione - SUI) of the prospective employer must receive all visa requests via a Nulla Osta document.
Depending on the state of the labor market in Italy at the time, the Italian government only sometimes approves work permit applications (for a few months every year). The government of Italy only issues a limited amount of granted work permits. Declaratory Flussi.
VAT in Italy
In Italy, the normal VAT rate is 22,000%.
Working Hours in Italy
General
In Italy, the norm for working hours is eight hours per day and forty hours per week.
Overtime
All labor that is done in excess of the required number of hours per week is considered overtime and must be compensated accordingly. In general, the NCA's maximum pay rates for overtime are followed.
Working Week
Monday to Friday.
Employee Termination in Italy
Termination Process
Except in cases where both parties have mutually agreed that an employee is not meeting work standards, has engaged in substantial misbehavior, or is being let go for economic reasons, terminations must be justified, come with notice, and comply with the NCA.
Notice Period
In Italy, the length of the notice period depends on whether the employee or the company initiated the termination. Managers must give 30 days' notice if the employer wants to end the agreement, whereas employees must give 60 days' notice. If an employee wants to end the contract, they must give 45 days' notice to managers and 30 days to other employees.
Severance Pay
Severance compensation is applicable in Italy if the company terminated the employee for legal reasons. The TFR (Trattamento di Fine Rapporto), which is something the employer cedes each month, must be paid to the employee upon termination. The TFR is determined by dividing the annual total remuneration by 13.5, adding 1.5% for every year of service, and accounting for inflation.
Probation Period
In Italy, statutory probation terms are determined by the employee's employment role. The probationary period is three months for employees without managerial responsibilities and six months for all other employees, managers, supervisors, etc.
The probationary period, however, may be longer and is frequently set in the pertinent NCAs.
Employee Leaves in Italy
Paid Time Offs
Following the completion of one year of service, the Civil Code defines paid leave in Italy as a mandatory annual minimum of eight days of paid leave. In addition to any national holidays, this leave is provided. All other employees' minimum leave is governed by their collective agreements, which typically provide paid yearly leave of at least four weeks annually.
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 8 vacation holidays throughout the year.
Sick Days
In Italy, workers have a right to paid sick time that is covered by both the government and their employer.
The company pays the first 3 days of the first two sicknesses each year at a rate of 100.00% of the normal income. For the third and fourth periods of sickness, this drops to 66.00% and 50.00%, respectively. Any additional illness within a year is not compensated.
From the fourth day on, the employee currently receives 100.00% of the normal wage rate of pay, which is split equally between the employer and the Italian authorities from days 4 to 21. The employers' contribution drops to 34.00% after day 22, and the government pays 66.00%.
Paternity Leave
Within 5 months of the child's birth, the dad is eligible to 100.00% of the usual wage and 10 days of required paternity leave.
Paternal Leave
A worker may take up to ten months of unpaid maternity and paternity leave in Italy.
Maternity Leave in Italy
Every woman working has a right to five months of maternity leave, which she can take starting two months before her due date and ending three months after giving birth. If the employee's work is hazardous to her health or the health of the unborn child or is postponed until after childbirth, the maternal leave before due date might begin earlier than two months.
During maternity leave, the worker is eligible to 80.00% of her usual wage, which is paid by the employer and then reimbursed by the INPS.
A new mother can also take an additional six months of leave without pay following her maternity leave. As an alternative, a mother can work 6 hours per day up until the child becomes a one-year-old; only if she decides not to pursue parental leave after her maternity leave.
Maternity indemnity will be extended by three months for mothers whose pre-maternity income was less than 8,145 EUR.
There are 140 leave throughout the year.