It is the world’s ninth largest economy. Italy is a country in south central Europe, occupying a peninsula that is just deep into the Mediterranean Sea. Hosting some of the most varied and scenic landscapes on Earth, Italy is often described as a country shaped like a boot. Art, music, style, and iconic food are the most famous elements of Italian culture. Though not a state religion, Roman Catholicism is the most popular religion in Italy. The Constitution also states that “all citizens have equal dignity and are equal before the law without distinction of sex, race, language, and religion”.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Italy.
Capital : Rome | Currency : Euro (€, EUR) | Languages spoken : Italian |
Population : 59.07 million (2021 est.) | Minimum wage 2023 : Regulated by CBAs | Cost of Living index : $$$$ (32 of 139 nations) |
Payroll Frequency : Monthly | VAT - standard rate : 22% | GDP - real growth rate : 6.6% (2021 est.) |
The national holidays mentioned below are valid for the year 2023.
There are approximately 11 public holidays in Italy. The major cities observe an additional regional holiday on the feast day of their patron saint. Sundays are also considered to be public holidays.
The approximate time for sharing the contract with an employee in Italy is 8 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Employers with 15 or more employees are required to employ at least one person living with serious disabilities.
In Italy, employers are obliged to ensure that employees have access to medical examination of health (pre-hiring, preventive, periodic) and examination of sight
Employees in Italy are classified into four different groups; Executives (“Dirigente”), Middle managers (“Quadro”), White-collar employees (“Impiegati”), and Blue-collar employees (“Operai”). Collective bargaining agreements and corporate norms, in relation to the structure of the company, determine the requirements for belonging to the indicated categories.
Non-compliance by the employer with dismissal regulations results in huge compensation payments.
Working hours are generally 40 hours per week, not necessarily calculated on the basis of a set working week but for each seven-day period.
Employees are entitled to a daily rest period of at least 11 consecutive hours every 24 hours, which effectively restricts how many hours an employee can work in a day.
Any work performed in excess of 40 hours per week constitutes overtime. Whether or not a contract has been signed, the number of overtime hours must not exceed eight hours weekly or 250 hours per year. The 48-hour limit is calculated over a seven-day period within a time period of no more than four months. Overtime is paid at a rate that is 15% more than actual full hourly pay.
The maximum term for probationary periods is six months. The actual length of time for the probation period is usually fixed by the Collective Bargaining Agreements (CBAs).
A written notice has to be served to the employee with detailed reasons for dismissal. The relevant notice period required to dismiss an employee for either a subjective or objective reason is set out in the applicable CBA, based on the employee’s length of service, position, and level.
Workers are entitled to annual paid leave of at least four 20 days plus four ex festivita. This minimum amount of leave cannot be replaced by compensation for leave not taken unless an employment relationship is being terminated. Collective bargaining agreements can establish longer annual leave on the basis of seniority. At least two weeks must be enjoyed in the year of accrual, even consecutively, if the worker so requests; and the other two within the 18 months following the end of the year of accrual.
Statutory sick pay is a benefit that replaces pay, starting from the fourth day of absence from work. The first three days are ‘waiting days’ unless the illness is a relapse, and, if provided for by the employment contract, are paid in full by the employer. Statutory sick pay is paid for a maximum of 180 days per calendar year. Between the fourth and 20th day of illness, the statutory sick pay amount is, generally, equal to 50% of average daily pay, moving to 66.66% between the 21st and 180th day.
During the first 12 years of the child’s life, the parents are entitled to take up to a maximum of 10 months’ leave in a year. The indemnity granted to employees during parental leave is taken until a child reaches 12 years old his to 80% of the base salary, where the following conditions are met:
For parental leave for a maximum period of one month taken only by the mother or, alternatively, by the father;
For parental leave taken until the child turns six years old.
The working mother or, alternatively, the father worker, including adoptive workers who take care of handicapped children, are entitled to the following leave provisions:
Each parent has the right to up to five days of unpaid leave per year to take care of a sick child between three and eight years old, but they cannot both take this period of leave at the same time.
Female employees are entitled to five months of paid maternity leave. Two months of leave is generally taken prior to the expected date of childbirth and three months following the actual date of childbirth. Throughout the period of maternity or paternity leave, a daily allowance equivalent to 80% of the most recent salary is payable by the National Institute for Social Security (INPS), including any payment for sickness.
The employed father abstains from work for a period of 10 working days in the time span ranging from two months prior to the expected date of birth up to five months following birth. The leave can be used, within the same period of time, even in the event of the perinatal death of the child.
In the event of multiple births, the duration of the leave is increased to 20 working days.
The leave also applies to the adoptive or custodial father.
All workers are entitled to paid leave of three working days per year in the event of serious illness or death of their spouse or second-degree relative or a partner.
Employed workers have the right to continue the training courses for the whole span of life, to increase professional knowledge and skills. National and decentralized collective bargaining units define the number of hours to be allocated to the leave, the criteria for identifying workers, and the modality of timetable and remuneration connected to the participation in training courses.
Continuous or discontinuous leave of up to two years may be granted for serious, documented family reasons.
Employees who have at least five years of service in the same company in administration may request a suspension of their relationship work for training leave for a period not exceeding 11 months, continuous or split, throughout their entire working life.
The Italian social security system is funded by contributions paid by employed workers, employers, independent workers, self-employed workers, as well as through general taxation.
Benefits | Employer Contribution | Employee Contribution | Monthly Salary Cap |
|---|---|---|---|
Injuries at Work Insurance (INAIL) | 0.4% | – | |
TFR (Trattamento di fine rapporto) | 7.407% of the monthly salary | – | |
Social Security (Invalidity, Old Age, or Survivors) | 31.58% | 9.19%* | €8,545 |
Medical Check-Up | 27 EUR | ||
Private Health Insurance | 10 EUR | 2 EUR |
NOTE: Employers receive a social security contribution exemption for permanent hires or transformations made between January 1, 2023 and December 31, 2023. The exemption equals 100% of the employer contribution, up from an annual limit of EUR 8,000.
In Italy, healthcare is guaranteed by the National Health Service (SSN) to all residents. The National Health Service (SSN) is funded by all residents of Italy through taxes (income tax, corporate tax, value-added tax), as well as through co-payment of the cost of medicines and health services through payment of what is referred to as the ‘ticket’, and managed by the individual regions through the Local Health Authority (LHA).
The National Institute for Insurance against Accidents at Work (INAIL) manages the insurance system, funded through contributions paid by employers, which protects workers in case of:
The services provided in the event of an accident at work or occupational disease can be of two kinds:
In Italy, pensions are operated by INPS and fed by salary-based contributions paid by both the employer and the employee towards social security. Workers are protected from the risk of loss of ability to work due to old age by the social security system contributions.
They are entitled to old-age benefits if:
During employment, the employer pays 7.407% of the employee’s pay to the local authorities on a monthly basis. The money is paid out by the authorities to the employee upon termination as an “end of service allowance”. TFR is mandatory and is due in any case of termination of employment (including resignation, and dismissal for just cause or death).
Also called Assegno per il Nucleo Familiare, it guarantees support for the families of employed workers and those retired from employed work, whose household is made up of multiple people and who have an income lower than that established annually by law.
A one-off lump sum is granted to pregnant women having completed their seventh month of pregnancy and to adoptive and foster parents.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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