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The individual income tax ranges from 0% to 43%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The employer cost is generally estimated at 37.42% of the employee's monthly salary + fees.

Monthly Costs

• Social Security - 23.81%

• National Sickness Benefits Contribution - 2.44%

• National Maternity Benefits Contribution - 0.24%

• Termination Severance Funds (TFR) - 6.91%

• Termination Severance Fund (TFR) Guarantee Contribution - 0.20%

• Unemployment Insurance - 1.61%

• Work Accident Insurance (INAIL) - 0.40%

• Subsidized Furlough Fund (FIS) - 0.53%

• Subsidized Furlough Fund (CIGS) - 0.60%

• Family Allowance (CUAF) - 0.68%

Monthly 13th and 14th Salary Installments

Employees in Italy are entitled to two additional payments: the 13th and 14th salaries. These payments amount to 1 month's salary each, calculated as the annual salary divided 14, not including other salary payments such as bonuses and allowances. The 13th and 14th salaries are included in the annual gross salary of EOR employees and are paid in monthly installments.

One-off Costs (1st invoice only)

• Onboarding Medical Check - €119

• Health and Safety Training: €42 (+€12 for training in English upon request)

Additional Costs for Quadro and Dirigente Employees

For employees classified under the Quadro and Dirigente job categories in Italy, additional employer costs apply.

Quadro Employees

• QuAS One-off contribution - €340 one-off

• QuAS Annual Contribution - Up to €370* per year

• Quadrifor Annual Contribution - €50 per year

*The QuAS annual contribution is prorated based on the months of employment in the calendar year and up to €370.

Dirigente Employees

• Private Pension (Fondo Mario Negri) - €769.43 per month

• Supplementary Health Insurance (Fondo Mario Besusso/Fasdac) - €320.43 per month

• Private Pension (Fondo Pastore) - €392.20 per month

• Solidarity Contribution - €148.21 per month

• Tertiary Management Training Fund (CFMT) - €26.24 per month

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 250 hours of overtime per year. For additional hours, employees are paid:

• 115% of the hourly rate, the first 8 hours.
  120% of the hourly rate, the following hours.
• 150% of the hourly rate for overtime night work excluding regular duty shifts (from 10 pm to 6 am)
• 130% of the hourly rate, on holidays and Sundays.

Dirigente employees are not entitled to overtime pay.

Employees are entitled to paid sick leave for up to 180 days. This leave is paid at different rates and by different payers depending upon length:

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Italy can be complex. In exceptional cases, there is at-will termination in Italy for employers outside the probation period and generally, the termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Without cause (exceptional cases)
• By the expiration of the contract

The minimum notice period is 30 days and will be increased according to the length of the employment, category of the employee, and type of termination.

Termination by the employee - executive managerial positions (Quadri and Level I)

• 45 days if the length of service is up to 5 years
• 60 days if the length of service is more than 5 years and up to 10 years
• 90 days if the length of service is more than 10 years

Termination by the employee

• 20 days if the length of service is up to 5 years
• 30 days if the length of service is more than 5 years and up to 10 years
• 40 days if the length of service is more than 10 years

Termination by the employer - executive managerial positions (Quadri and Level I)

• 60 days if the length of service is up to 5 years
• 90 days if the length of service is more than 5 years and up to 10 years
• 120 days if the length of service is more than 10 years

Termination by the employer

• 30 days if the length of service is up to 5 years
• 45 days if the length of service is more than 5 years and up to 10 years
• 60 days if the length of service is more than 10 years

In Italy, there is no statutory severance pay or redundancy compensation beyond the TFR (Trattamento di Fine Rapporto). The TFR is a deferred portion of an employee's wages, calculated as one year’s salary divided by 13.5, plus 1.5% for each year of service, adjusted for inflation. It must be paid to the employee upon any termination of the employment relationship.
While not mandated by law, it is a common local practice to offer an additional severance payment equivalent to 4 to 5 months’ salary on top of the TFR. This is typically provided in exchange for a waiver of future claims or liabilities.

To protect against potential risks from terminations, Deel applies a Severance Accrual to all employment agreements in this country. This accrual is based on statutory entitlements, prevailing local practices, and our global expertise in managing litigation risk. If an employee resigns or is otherwise not entitled to severance, unused amounts are returned to you.

Italy celebrates both 12 national and 10 regional holidays based on the location of the employee.

National public holidays include:

• New Year's Day
• Epiphany
• Easter Sunday
• Easter Monday
• Liberation Day
• Labor Day
• Republic Day
• Assumption of Mary
• All Saints' Day
• Feast of the Immaculate Conception
• Christmas Day
• St. Stephen's Day

Contracts must be in Italian and can be bilingual. To prepare the employment agreement, the employee will have to provide information about their previous employment to select the classification that can be dirigenti, quadri, or impiegato. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Category of the employee
• Termination conditions