Discover the global hiring and employment landscape in Italy – renowned for its rich cultural heritage and diverse economic sectors, Italy presents a unique blend of tradition and innovation. With a skilled workforce and strategic location in Europe, Italy offers abundant opportunities for businesses seeking growth and prosperity.
| Taxable Income (EUR) | Progressive Tax Rate (%) |
|---|---|
| Up to 28,000 | 23 |
| 28,001–50,000 | 35 |
| Over 50,000 | 43 |
Taxpayers in Italy may be subject to both a regional income tax that ranges between 1.23% and 3.33% and a municipal income tax of up to 0.9% depending on where they are domiciled.
Italian employers are obligated to register with the Italian Social Security Administration (INPS), and the contributions made by both the employer and employee to the INPS shall be calculated based on the employee's annual salary of up to EUR 119,650.
Note: The rate of contribution to the INPS varies according to the company's activities, number of employees and the employee's position.
| Contribution Rate | Note | |
|---|---|---|
| Social Security (INPS) | 28.46%–29.06% | An additional 1.4% may be levied for fixed-term employees, and this shall further increase by 0.5% with every subsequent renewal. |
| Workplace Accident Insurance (INAIL) | Varies | Premium calculation can be done through the INAIL online service. |
| Contribution Rate | |
|---|---|
| Social Security (INPS) | 9.19%–9.49% |
Employees are usually paid monthly, though a different interval can be agreed on between the concerned parties in accordance with any applicable collective agreement.
There is no statutory minimum wage in Italy, though it can be set by the applicable industry-level collective agreement.
It is common for employees, on the basis of collective agreements, to receive a 13th month salary at Christmas. Some agreements may also stipulate a 14th month salary to be paid during the summer.
Either party to an employment contract can terminate by giving the other party a written notice of their intentions and the reason for the termination. Employers unilaterally dismissing their employees must generally have a just cause (giusta causa) or a justified reason (guistificato motivo) to do so.
| Explanation | Notice Period | |
|---|---|---|
| Just cause | Any reason that does not allow the continuation of an employment relationship, e.g. serious misconduct. | Not required |
| Justified reason | Any reason relating to a significant breach to contractual obligations that is not serious enough to warrant summary dismissal or relating to organizational factors that amounts to redundancy. | Required |
In any case, employees dismissed on disciplinary grounds must be informed of the allegations in writing and be given the opportunity to defend themselves. Moreover, it is important to note that any disciplinary sanction cannot be applied until at least 5 days have elapsed since the employee was first notified of their alleged misconduct.
While there is no statutory minimum notice period, it may be regulated under the applicable collective agreement. Notice periods typically vary according to the employee's length of service and, in the case of dismissals, can range from a week up to 6 months.
Except for termination for just cause, a notice period must be observed by either the employer or employee seeking to terminate their employment relationship.
Note: Employees who resign for just cause can do so without observing any notice period and shall instead be entitled to receive payment in lieu of notice from their employers.
Employees in Italy are entitled to severance (trattamento di fine rapporto, TFR) regardless of the reason for their termination. The amount entitled is accrued throughout the employee's service, with the employer being obligated to make annual contributions to their employees' severance pot.
A year's TFR is calculated by dividing the employee's gross annual wage by 13.5. Moreover, this amount shall also be revalued every year according to the rate of inflation published by ISTAT. The revaluation percentage is given by a fixed percentage of 1.5% + 75% of the increase in CPI compared to the previous year.
For example, an employee with a gross annual wage of EUR 25,000, which does not change in the second year, and with the CPI seeing a 5% rise compared to the previous year, shall have their TFR calculated as follows:
| TFR for Year 1 | EUR 25,000 / 13.5 = EUR 1,851.85 |
|---|---|
| TFR for Year 2 | EUR 1,851.85 + (EUR 1,851.85 * 0.015) + {EUR 1,851.85 * [(0.75 * 5) / 100]} = EUR 1949.10 |
| Total Accumulated TFR for their 2 years of service | EUR 1,851.85 + EUR 1949.10 = EUR 3,800.95 |
A probationary period may be included in an employment contract, up to a maximum period of 6 months unless otherwise stipulated in an applicable collective agreement. During probation, either party can terminate the employment relationship without giving any notice or compensation.
Unless otherwise provided by a collective agreement, the normal working hours is set at 40 hours per week. Moreover, the maximum working hours, including overtime, is set at an average of 48 hours per week, calculated over a 4-month reference period.
Note: The reference period used to calculate maximum weekly hours can be extended to 6–12 months by collective agreement, provided that there are objective, technical or organizational reasons for doing so.
Employees who works 6 consecutive hours are entitled to a break time of at least 10 minutes, which may be extended by the applicable collective agreement.
Furthermore, during the first year following childbirth, working mothers can take one-hour breaks twice daily, or only once per day if working time is less than 6 hours for that day. These breaks may be taken off-premises if the employee wishes to do so.
Any work done in excess of the normal working hours is considered overtime, which can only be done under certain exceptional circumstances.
Unless otherwise provided under a collective agreement, overtime cannot exceed an average of 8 hours per week, calculated over a maximum of 4-month period, or a total of 250 hours per year.
Overtime work must be compensated in the form of a pay supplement and/or time off in lieu as laid down in the relevant collective agreement.
Employees are entitled to at least 11 consecutive hours of rest in between working days and 24 consecutive hours of rest per week.
Weekly rest day is typically given on a Sunday, with this period not being added to the calculation of average working hours. The special provisions allowing the use of weekly rest on a day other than Sunday, as well as the exceptions to the weekly rest is provided for under Law No. 370 of February 22, 1934.
Employees are only permitted to work on their rest days under certain conditions stipulated in the applicable collective agreement. Moreover, those required to work on their weekly rest day must be compensated in the form of a pay supplement and/or time off in lieu as laid down in the relevant collective agreement.
Employees are generally entitled to paid time off during public holidays that fall on their working days. There are at least 11 days of public holidays in Italy for 2024.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Epiphany | January 6 |
| Easter Monday | April 1 |
| Liberation Day | April 25 |
| Labor Day | May 1 |
| Republic Day | June 2 |
| Assumption Day | August 15 |
| All Saints' Day | November 1 |
| Immaculate Conception | December 8 |
| Christmas Day | December 25 |
| Saint Stephen's Day | December 26 |
In addition to the above holidays, there may be an additional day of holiday for the celebration of the local patron saint, the date of which varies across the localities.
Employees required to work on public holidays must be compensated in the form of a pay supplement and/or time off in lieu as laid down in the relevant collective agreement.
Note: A public holiday that falls on a Sunday or another day that is not usually a work day shall entitle the employee to an additional day's pay.
Employees are entitled to at least 4 weeks of paid annual leave, which can be extended by collective agreement.
An employer may require their employees to take annual leave at a specific time in consideration of the company's needs. However, employees shall still retain the right to request for 2 weeks of their annual leave be taken consecutively.
Moreover, unless an applicable collective agreement provides otherwise, at least 2 weeks of annual leave must be taken on the year when the entitlement arises. The remaining leave must be taken within 18 months after the end of the year in which they are accrued, i.e. by June 30 of the following year.
Employees are entitled to sick leave for a duration established under the applicable collective agreement, usually for a duration of up to 180 days per year.
The duration of sick leave are typically paid as follows:
| Paid by the INPS | Paid by the employer | |
|---|---|---|
| Days 1–3 | - | 100% |
| Days 4–20 | 50% | 50%, if required by collective agreement |
| Days 21–180 | 66.6% | 33.3%, if required by collective agreement |
Note: The employers are generally responsible for paying their employees the allowance in advance before having the amount recorded as an adjustment to sums that must be paid to the INPS.
Employees are entitled to 5 months of maternity leave, which may start within 2 months prior to the expected date of delivery. Those on maternity leave may be entitled to receive maternity allowance from the INPS equivalent to 80% of their regular pay.
Note: The amount due by INPS is advanced by the employer, who will then be reimbursed accordingly. Some collective agreements may require the employer to supplement the allowance to make it so that the employee receives 100% of their regular pay for the duration of their leave.
Employees are entitled to 10 days of paternity leave, which can be taken between the 2 months prior to the expected date of birth and the 5 months after the child's birth.
Employers are not required to pay their employees on paternity leave, though employees may still be entitled to receive full allowance from the INPS.
Employees are entitled to, for the first 12 years of their child's life, the following parental leave arrangement:
| Maximum total duration | Maximum duration for each parent | |
|---|---|---|
| Single parent | 11 months | 11 months |
| Non-single parent | 10 months | 6 months |
For parental leave that is shared between both working parents, the total duration may be increased to 11 months if the working father takes at least 3 months' parental leave. Furthermore, in such cases, the father's maximum leave duration shall be increased to 7 months.
If the child has severe disability, one of the working parents are entitled to, after exhausting their normal parental leave entitlement, to take up to 3 years of additional leave up until the child's 12th birthday.
Employers are not required to pay their employees on parental leave, though employees may still be entitled to receive limited allowance from the INPS.
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Child Care Leave | Unpaid | - |
For employees when their child falls sick and requires care. This leave is unlimited for a child under 3 years old, and for up to 5 days per year for a child between 3 and 8 years old. Only one working parent can take this leave at a time. |
| Education Leave | Unpaid | 11 months | For employees with at least 5 years of service to attend college or other training institutions. This leave can either be taken continuously or intermittently. |
| Family Care Leave | Paid | 3 days per year | For employees in the event of a medically certified serious illness or death of their spouse, cohabiting partner or close relatives. |
| Long-term Family Care Leave | Both | 2 years |
For employees who have documented serious family needs to take care of a close relative with a disability or a chronic illness. This can be taken in a single block or over multiple periods totaling to 2 years throughout the employee's entire service. While this leave is generally unpaid, those taking care of a spouse or close relative with a |
| Marriage Leave | Paid | 15 days | For employees at the time of their marriage or civil partnership. |
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