Payroll & Employment Guide: Italy

Hiring in Italy

Hiring in Italy requires strict compliance with national labour laws and sector-specific Collective Bargaining Agreements (CCNL), which define salary ranges, benefits, notice periods, and working conditions.

Employers must follow CCNL wage tables, ensure that compensation meets or exceeds sector minimums, and respect working-time, leave, and termination rules. Before onboarding employees, review the relevant CCNL to understand salary levels, benefits, and classification requirements for each role.

Learn more

Employee Benefits

Italy offers strong employee protections, statutory benefits, and CBA-mandated perks. Employers often enhance benefits beyond the legal minimum to remain competitive.

Mandatory Benefits:

• Paid annual leave (typically 20–26 days per year, depending on CCNL)
• Sick leave, paid jointly by the employer and INPS (social security)
• Maternity leave and paternity leave as required by law
• Social security contributions for pension, unemployment, and other protections
• CBA-specific benefits, such as meal vouchers, additional leave days, and welfare fund contributions

Leave Policies:

• Annual leave: generally 20–26 days per year, depending on CCNL and seniority
• Sick leave: typically compensated at 50–100% of salary, shared between employer and INPS, depending on duration and CCNL rules
• Maternity leave: 5 months, usually paid at 80% of salary via INPS
• Paternity leave: 10 mandatory days
• Additional parental leave: up to several months, often up to 6 months shared between parents, with partial pay

Healthcare:

• Universal public healthcare coverage via the National Health Service (SSN)
• Many employers provide supplemental private health insurance through welfare funds tied to the CCNL

Designing a benefits package aligned with the applicable CCNL and competitive market practices helps attract and retain talent in Italy.

Get more benefits

Taxes in Italy

Italy uses a progressive individual income-tax system (IRPEF), supplemented by regional and municipal surcharges. Employers must withhold wage tax and remit all contributions each month.

Personal Income Tax Rates (IRPEF – 2026 projected):

• 23%: up to €28,000
• 35%: €28,000 – €50,000
• 43%: above €50,000

Additional Local Taxes:

• Regional tax: approximately 1.2%–3.3%
• Municipal tax: approximately 0%–0.9%

Tax Allowances & Reliefs:

• General tax credits for employees
• Deductions and tax credits for dependents
• Work-related tax credits
• Certain CBA-specific benefits with tax advantages

Employers must configure payroll systems to apply IRPEF brackets and local surcharges correctly, and to reflect all tax credits or allowances as permitted by law.

Payroll in Italy

Employers must follow CCNL wage tables, pay mandatory contributions, and respect payroll compliance obligations in Italy.

Base Salary:
Base pay is determined by the applicable CCNL, based on job level, skill category, and seniority. Employers may pay above the minimums but cannot go below CCNL wage floors.

Minimum Wage:
Italy does not have a statutory national minimum wage. Instead, each sector’s CCNL establishes minimum salary levels (e.g., hospitality, retail, engineering, transport).

Payment Schedule:

• Salaries are typically paid monthly, around the 27th–30th of the month
• A 13th-month salary (“Tredicesima”) is mandatory in most CCNLs
• A 14th-month salary (“Quattordicesima”) is required in some sectors, according to CCNL

Additional Payments:

• Meal vouchers (often required or standard under CCNL)
• Overtime supplements in line with CCNL rules
• Night and weekend work premiums
• Seniority increments and other CCNL-related bonuses

Taxes & Social Security:

• Employee social security (INPS): approximately 9.19% of salary
• Employer social security: approximately 30% (varies by sector, company size, and risk)

Payroll Reporting Requirements:

• Monthly: INPS and INAIL (work accident insurance) contributions, plus wage-tax submissions
• Annual: CU forms for employees and 770 form for employer tax reporting

Key Deadlines:

• Salary payment: monthly
• Taxes: usually due by the 16th of the following month
• INPS/INAIL contributions: monthly and annual reporting as required

Payroll Currency: EUR.

Looking for detailed guidance on Italy’s payroll cycles, CCNL wage tables, and statutory deductions?

About payroll

Legal Regulations

Italy’s employment framework is guided by the Italian Labour Code, the Civil Code, and a wide range of CCNLs that govern sector-specific employment conditions.

Total Employment Cost:

• Employer contributions: approximately 30% of salary
• Employee contributions: approximately 9% of salary
• Minimum wage: defined by the applicable CCNL, not by a single national law
• Probation period: generally 30–180 days, depending on CCNL and role

Employers must ensure compliance with working-time limits, rest periods, health & safety obligations, non-discrimination rules, and CCNL-specific conditions for wages, bonuses, and termination procedures.

Learn more

Work Permits & Visas for Italy

Non-EU nationals require a valid work visa under the Italian immigration system. The appropriate permit depends on the type of contract, job role, and skill level.

Types of Permits (examples):

• Highly Skilled Worker visas and permits
• Other work visas tied to employer sponsorship and labour quotas

Employers must ensure the worker obtains the correct visa and residence permit before beginning employment and must complete all necessary registrations with social-security and local authorities. For companies without an Italian entity, EOR solutions can help reduce immigration and compliance risk.

Learn more

EOR & PEO Services in Italy

Using Employer of Record (EOR) and Professional Employer Organization (PEO) services in Italy allows you to hire and manage staff compliantly without navigating all local complexities alone.

Employer of Record (EOR) in Italy:

An EOR allows you to hire in Italy without establishing an Italian legal entity. Your EOR typically handles:

• CCNL-compliant employment contracts
• Monthly payroll processing and payslips
• Tax withholding and social-security contributions (INPS/INAIL)
• Benefits and mandatory welfare fund enrolments
• Onboarding, offboarding, and HR documentation
• Local HR compliance monitoring and updates

PEO Services in Italy:

PEO services streamline HR administration while you remain the legal employer. A PEO can support:

• HR support and day-to-day workforce oversight
• Payroll and benefits management
• CCNL interpretation and compliance
• Contract drafting and HR documentation

EOR/PEO solutions reduce administrative burden and help ensure compliance with Italian labour law and CCNL requirements.

Learn More

Payroll Calculator

Use Dhi ADT’s payroll calculator to estimate gross-to-net pay, employer contributions, and tax deductions in Italy. Model different salary levels, CCNL scenarios, and bonus structures to understand your total employment cost.

Go to Calculator