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.