Payroll and Benefits Guide

Good to know

In Italy, it is customary to have 13th and 14th salaries. The 13th salary is paid during the employee’s summer holiday, while the 14th salary is paid at Christmas.


Euro (EUR)



Employee Costs


Local Language


Employer Taxes

29.40% – 32.40%

Public Holidays

12 Days

Payroll Frequency


Tax Year

1st Jan – 31st Dec

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Minimum Wage

Italy does not have a statutory national minimum wage applicable to all workers. Instead, minimum wages were set through collective bargaining agreements at the industry or sector level.

These agreements are negotiated between trade unions and employer associations. The minimum wage can vary depending on the specific industry, job category, and location.

Working Hours

Standard Working Hours

In Italy, the standard working hours are 8 hours per day and 40 hours per week. The standard work week is Monday – Friday. 


Any work exceeding the standard 40-hour work week qualifies as overtime and is subject to regulation through employment contracts or collective agreements. 


In Italy, the standard payroll cycle is monthly, with payments typically made on the 27th of each month. According to Italian law, salaries are usually paid in 12 monthly instalments.

Additionally, employees receive an extra 13th instalment (“tredicesima”) alongside their December salary. Some National Collective Agreements (NCAs) may also include a 14th monthly instalment, which is usually paid in June.


Paid time off

All employees are entitled to a minimum of four weeks paid annual leave. 

Sick Pay

In Italy, sick pay and time off are outlined in individual contracts and collective bargaining agreements. The provision of sick pay varies, with some portions covered by the Italian state and others by the employer. The specific amounts depend on the employee’s length of service and the sector of the business.

Maternity Leave

Female employees are granted a period of 5 months for paid maternity leave, typically taken from two months before the expected due date until three months after giving birth. However, if the nature of the employee’s work poses risks to her health or that of the unborn child, the maternity leave before the due date can commence earlier than two months. Alternatively, it can be postponed until after childbirth.

Paternity Leave

The father is entitled to receive 100.00% of the regular salary and compulsory paternity leave of 10 days within five months of the child’s birth.


Termination of Employment

Termination of employment in Italy requires proper justification, with notice provided according to the National Collective Agreement (NCA), unless it occurs through mutual agreement, due to the employee’s failure to meet work requirements, serious misconduct, or economic reasons. 

If an employee feels they have been unfairly dismissed, they have the option to approach an employment tribunal. In such cases, severance pay can range from three to six months’ worth of the employee’s salary.

Notice Period

In Italy, the notice period varies depending on whether the termination is initiated by the employer or the employee. The length of the notice period is determined by the relevant National Collective Bargaining Agreement (NCBA), the duration of the employment, and the classification of the employee.

Probation Period

The length of the probationary period can vary depending on the industry, the job position, and the company’s policies. It is common for probationary periods to last anywhere from 1 to 6 months, with 3 months being a relatively standard duration.


Foreigners intending to work in Italy must obtain a work visa, a national visa, or a D-Visa, which permits entry into Italy within eight days of arrival. However, to remain in Italy, an additional authorization is necessary, known as a residence permit or “permesso di soggiorno.”.

The prospective employer is required to submit all visa applications through a Nulla Osta document at the Immigration Office (Sportello Unico d’Immigrazione – SUI) in the province where the company is located.

The Italian government issues a limited number of approved work permits and accepts work permit applications periodically, typically for a few months every one or two years, depending on Italy’s job market conditions at that time (referred to as “Decreto Flussi”).


The standard rate of VAT in Italy is 22.00%.

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