Good to know
Local currency: Euro (€)
Minimum salary: Italy does not have a legally mandated, nationwide minimum wage set by the government.
Salary Payment: Salaries are typically paid monthly
While less common, some agreements or specific circumstances may involve weekly or other payment frequencies.
Salary Calculation: Gross to Net
Legal Working Hours: 40 hours, typically divided into eight-hour days from Monday.
About Italy
Italy is part of Europe, and it is composed of 20 regions, with Rome as its capital. The country has a population of approximately 60 million and covers an area of roughly 301,000 square kilometres. In this beautiful country, there are three different climates: mountains in the north, continental in the plain, and Mediterranean in the south, a perfect climate to spend a beautiful holiday.
Payroll Italy is different from that of the most European countries, and newcomers to the Italian market may find local requirements complex and confusing.
Italy is subject to National Labour Collective Agreements, they define the general rules of work, and individual employment contracts cannot deviate from them. Deviations from NCLA are permitted only when the terms of the individual employment contract are higher than those described in the NCLA (for example, an employer may decide to offer more vacation days than the one specified in the applicable NCLA).
Ready to Benefit from Italian Payroll & HR Experts ?
The Italian Social Security System
The Italian social security system has like four key players and contributions as following:
- INPS (Istituto Nazionale della Previdenza Sociale): e primary body responsible for managing and administering the social security system. It collects contributions and disburses benefits.
- INAIL (Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro): Handles insurance for work-related injuries and occupational diseases.
- Employers and Employees: Both employers and employees contribute to the social security system.
All Italian employees, even those hired for a fixed period, must be registered at the INPS, which covers services including but not limited to:
- Retirement Pensions (Pensioni di Vecchiaia e Anticipate).
- Disability Benefits (Invalidità): Supporting individuals unable to work due to disability.
- Survivors’ Pensions (Pensioni ai Superstiti): Offering financial assistance to surviving family members.
- Family Allowances (Assegno Unico Universale): Supporting families with children.
INPS rates vary according to many factors such as industry, the total number of employees on the payroll and the location of the business but typically range between 29% and 32% of the employee’s gross wage. The specific contribution rate depends on the profile of the company, its industry, the number of employees and their positions.
Income Tax
In Italy, the personal income tax (IRPEF – (Imposta sul Reddito delle Persone Fisiche) is deducted at source. Italy utilizes a progressive income tax system, meaning the tax increases as income rises. For 2025, the IRPEF rates structured as follows:
- Income up to €28,000: 23%
- Income from €28,001 to €50,000: 35%
- Income over €50,000: 43%
Residents Taxation in Italy:
- Global Income:
Residents are taxed on their worldwide income, regardless of where it’s earned. - Deductible Expenses (Oneri Deducibili):
They can deduct a wide range of expenses to reduce their taxable income, including social security contributions, charitable donations, and certain medical expenses. - Deductions (Detrazioni):
Residents can claim various deductions from their gross tax, such as deductions for dependents (spouse, children), and certain types of expenses (mortgage interest, education)
Non- Residents Taxation in Italy:
- Italian-Sourced Income:
Non-residents are taxed only on income earned within Italy. - Limited Deductible Expenses:
They have a more limited range of deductible expenses, primarily specific donations. - Limited Deductions:
They can claim certain deductions from gross tax, but these are restricted compared to residents. - No Family Deductions:
Non-residents cannot claim deductions for family dependents.
Social Contributions in Italy
The contribution rates in Italy vary according to the business sector to which the company belongs (industry, commerce, public sector, etc.), the number of employees and their professional qualifications.
The total social security contribution is approximately 40% of an employee’s gross salary, with the exact rate varying based on the company’s industry, workforce size, and the employee’s role. The contributions are distributed as follows:
- Employees’ charge is around 30% (range between 29% and 33%).
- Employee’s charge is around 10%
The rates of financing for social insurance schemes (sickness, maternity, IVS (invalidity, old age, survivors), unemployment, family benefits, etc.) and other social security insurance may be excluded or may be payable to varying degrees depending on the production sector to which the company belongs. For example, the standard employer rate for maternity is indeed 0.46%, and it is reduced to 0.24% for the commercial sector.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Italy.
Our Payroll and HR services in Italy
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Italy
HR & Payroll in Italy
Good to know
Local Currency: Euro (EUR)
Average Salary: € 1,580 Per Month
Tax Year: 1st January – 31st December
Average Working Hours: 38 Hour Per Week
Ready to Benefit from Italian Payroll & HR Experts ?
About Italy
Payroll in Italy is different from that of the most European countries, and newcomers to the Italian market may find local requirements complex and confusing.
Italy is subject to National Labour Collective Agreements, they define the general rules of work, and individual employment contracts cannot deviate from them. Deviations from NCLA are permitted only when the terms of the individual employment contract are higher than those described in the NCLA (for example, an employer may decide to offer more vacation days than the one specified in the applicable NCLA).
The Italian social security system
All Italian employees, even those hired for a fixed period, must be registered at the Istituto Nazionale della Previdenza Sociale (INPS), which covers services such as health, unemployment, maternity, family allowances, education and retirement. Both the employer and the employee pay contributions to the INPS. INPS rates vary according to many factors such as industry, the total number of employees on the payroll and the location of the business but are generally estimated at 30% of the gross salary of the firm. Depending on the profile of the company and the industry, affiliations with additional funds may be required. The contributions for accidents at work and occupational sickness are collected by the Istituto Nazionale per l’Assicurazione (INAIL).
Income Tax
In Italy, the personal income tax (IRPEF) is deducted at source. It is calculated according to five different branches of income:
- 23% for income between €0 – €15,000
- 27% for income between €15,000 – €28,000
- 38% for income between €28,000 – €55,000
- 41% for income between €55,000 – €75,000
- 43% for income exceeding €75,000.
Social contributions in Italy
The contribution rates in Italy vary according to the business sector to which the company belongs (industry, commerce, public sector, etc.), the number of employees and their professional qualifications.
The table below shows only the general contribution rates for industrial and commercial companies, which represent the most important categories.
| Contributions as of January 1, 2021 | ||
| Contributions | Employee | Employer |
| Sickness (cash benefits) | – | 2,22% (1) |
| Maternity (cash benefits) | – | 0,46% (2) |
| Invalidity, old age, survivors (IVS) | 9,19% | 23,81% |
| Unemployment (varies according to the duration of the employment contract) | – | 1,61% (3) |
| Family benefits (may be paid by the employee according to the employment contract) | – | 0.68% |
| Accident at work and occupational sickness | – | (4) |
| Guarantee Fund (Fondo di garanzia TFR) (5) | – | 0,20% |
(1) Depending on the employee’s status, this contribution may be waived.
(2) Only 0.24% for the commercial sector.
(3) Most fixed-term contracts are subject to an additional contribution of 1.40% (increased by 0.5% per year in case of renewal of the fixed-term contract).
(4) The contribution for work accidents and occupational diseases (premio assicurativo) varies according to the risks of the professional branch to which the company belongs. It is payable by the employer.
(5) In Italy, the termination of an employment contract leads to the payment of a severance pay (trattamento di fine rapporto, TFR), a sum accumulated each year according to the worker’s seniority. The INPS Guarantee Fund intervenes in case of employer insolvency.
Some companies must also pay an “ordinary salary supplement” (Cassa Integrazione Guadagni Ordinaria, CIGO) or an “extraordinary salary supplement” (Cassa Integrazione Guadagni Straordinaria, CIGS) to finance the maintenance of the remuneration of workers in companies in difficulty. The CIGS contribution is split between the employer (0.60%) and the employee (0.30%). The CIGO contribution varies according to the branch concerned.
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Italy.
Our Payroll and HR services in Italy
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Euro (EUR)
Average Salary: € 1,580 Per Month
Tax Year: 1st January – 31st December
Average Working Hours: 38 Hour Per Week
Ready to Benefit from Italian HR & Payroll Experts?
About Italy
Italy is part of Europe, and it is composed of 20 regions, with Rome as its capital. The country has a population of approximately 60 million and covers an area of roughly 301,000 square kilometres. In this beautiful country, there are three different climates: mountains in the north, continental in the plain, and Mediterranean in the south, a perfect climate to spend a beautiful holiday.
Payroll Italy is different from that of the most European countries, and newcomers to the Italian market may find local requirements complex and confusing.
Italy is subject to National Labour Collective Agreements, they define the general rules of work, and individual employment contracts cannot deviate from them. Deviations from NCLA are permitted only when the terms of the individual employment contract are higher than those described in the NCLA (for example, an employer may decide to offer more vacation days than the one specified in the applicable NCLA).
The Italian social security system
All Italian employees, even those hired for a fixed period, must be registered at the Istituto Nazionale della Previdenza Sociale (INPS), which covers services such as health, unemployment, maternity, family allowances, education and retirement. Both the employer and the employee pay contributions to the INPS. INPS rates vary according to many factors such as industry, the total number of employees on the payroll and the location of the business but are generally estimated at 30% of the gross salary of the firm. Depending on the profile of the company and the industry, affiliations with additional funds may be required. The contributions for accidents at work and occupational sickness are collected by the Istituto Nazionale per l’Assicurazione (INAIL).
Income Tax
In Italy, the personal income tax (IRPEF) is deducted at source. It is calculated according to five different branches of income:
- 23% for income between €0 – €15,000
- 27% for income between €15,000 – €28,000
- 38% for income between €28,000 – €55,000
- 41% for income between €55,000 – €75,000
- 43% for income exceeding €75,000.
Social contributions in Italy
The contribution rates in Italy vary according to the business sector to which the company belongs (industry, commerce, public sector, etc.), the number of employees and their professional qualifications.
The table below shows only the general contribution rates for industrial and commercial companies, which represent the most important categories.
| Contributions as of January 1, 2021 | ||
| Contributions | Employee | Employer |
| Sickness (cash benefits) | – | 2,22% (1) |
| Maternity (cash benefits) | – | 0,46% (2) |
| Invalidity, old age, survivors (IVS) | 9,19% | 23,81% |
| Unemployment (varies according to the duration of the employment contract) | – | 1,61% (3) |
| Family benefits (may be paid by the employee according to the employment contract) | – | 0.68% |
| Accident at work and occupational sickness | – | (4) |
| Guarantee Fund (Fondo di garanzia TFR) (5) | – | 0,20% |
(1) Depending on the employee’s status, this contribution may be waived.
(2) Only 0.24% for the commercial sector.
(3) Most fixed-term contracts are subject to an additional contribution of 1.40% (increased by 0.5% per year in case of renewal of the fixed-term contract).
(4) The contribution for work accidents and occupational diseases (premio assicurativo) varies according to the risks of the professional branch to which the company belongs. It is payable by the employer.
(5) In Italy, the termination of an employment contract leads to the payment of a severance pay (trattamento di fine rapporto, TFR), a sum accumulated each year according to the worker’s seniority. The INPS Guarantee Fund intervenes in case of employer insolvency.
Some companies must also pay an “ordinary salary supplement” (Cassa Integrazione Guadagni Ordinaria, CIGO) or an “extraordinary salary supplement” (Cassa Integrazione Guadagni Straordinaria, CIGS) to finance the maintenance of the remuneration of workers in companies in difficulty. The CIGS contribution is split between the employer (0.60%) and the employee (0.30%). The CIGO contribution varies according to the branch concerned.
Source : The Cleiss
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Italy.
Our Payroll and HR services in Italy
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure