Country Payroll Guide Italy
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Key Facts
- Capital
- Rome
- Date format
- dd/mm/yyyy
- Currency
- Euro (EUR)
- VAT
- the standard rate is 22%
Contributions
Employers
- Social Security
- Social Security - 29% to 32%
- Injuries at Work Insurance
- Injuries at Work Insurance - 0.4%
- Total Employment Cost
- Total Employment Cost - 32.4%
Employees
- Social Security
- Social Security - 10%
- Total Employee Cost
- Total Employee Cost - 10%
Minimum Wage
- Minimum Wage
There is no mandatory minimum rate of pay for workers in Italy. Pay rates must be agreed upon directly with the employer through collective bargaining or other means of negotiating a fair living wage.
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
13th and 14th salaries.
Income Tax
- Employee Income Tax (1)
- Up to 15000 EUR - 0%
- Employee Income Tax (2)
- 15,000 - 28,000 EUR - 27%
- Employee Income Tax (3)
- 28,000 - 55,000 EUR - 38%
- Employee Income Tax (4)
- 55,000 - 75,000 EUR - 41%
- Employee Income Tax (5)
- Over 75,000 EUR - 43%
Working Hours
- General Working Hours
4o hours per week / 8 hours per day.
- Overtime
Limited to 2 hours a day and must be approved by the company. There is no set overtime pay, however, overtime pay must be more than the regular rate.
Leave
- Paid Time Off
The mandatory minimum number of paid leave is 26 days and employees can carry over the unused days to the following year, however, they must be used by June 31st.
- Public Holidays
11 days.
- Sick Days
For the first three days, the employee is entitled to a 100% payment which is covered by the employer. From the 4th to the 21st day of the illness the employee is entitled to 75% of the salary of which 50% is covered by the government and 50% by the employer. From the 21st day onward, the employee is entitled to 100%, of which 66% is covered by the government and the rest by the employer.
- Maternity Leave
Mothers are entitled to 5 months of maternity leave. Two months must be taken before birth. The employee will receive a 100% pay.
- Paternity Leave
Within the first 5 months of the child’s birth fathers receive 10 days of compulsory leave and a paid 100% of their salary.
- Parental Leave
Up to 10 months of unpaid parental leave: – For a mother after maternity leave she can take up to 6 months of unpaid leave. A single parent can take up to 10 months of unpaid leave.
- Other Leave
Paid permits are a special amount of paid leave out of which paid permits can be used only for specific reasons stated in each CCNL, the most common are the following: – Death or serious illness of a family member – Handicapping of a family member – Family reasons.
Termination
- Termination Process
Notice and reasons must be given by employer.
- Notice Period
30 days.
- Severance Pay
Employers must set aside funds for severance (TFR) for the employee and is to be paid out to them within 6 months of leaving the company. TFR is calculated by: – Taking the gross annual salary from January 1st to December 31st and is divided by 13.5 – Deduct the taxable income (pension, social security) and multiply this amount by 0.5%.
- Probation Period
2-6 months.
Visa
- Employment Visa
Not required.