Currency: Euro (EUR)

Capital: Rome

Official language: Italian

Payroll Cycle: Monthly

Paid Time Off

In Italy, employees are entitled to a minimum of 20 days of paid holiday a year.

Public Holidays

• New Year’s day
• Epiphany
• Easter Monday
• Liberation Day
• Labor Day
• Republic Day
• Ferragosto
• All Saints' Day
• Immaculate Conception
• Christmas Day
• St. Stephen’s Day

Additional Regional holidays may also apply.

Individual Income Tax

The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 23% to 43%

Employer Tax

Approximately, 30% of employee salary

Employment Contract Details

There are no statutory requirements for a written employment contract nor the obligation to draft the contract in Italian.

Probation Period

The maximum probation period is 6 months. The length varies depending on the terms of the applicable Collective Bargaining Agreement.

Minimum Wage Requirements

There are no provisions regarding minimum salary stipulated in law.

Maximum working hours and overtime

Normal working hours over a five-day period are 40 hours a week and must not exceed 48 hours.

Bonus and expense payments

Employees are entitled to receive a 13th salary equal to their regular monthly salary, which is paid in December unless the employee requests to receive this on a monthly basis. Most employers are required to provide employees with a 14th salary as well, that is paid in July unless the employee requests to receive this on a monthly basis.

Parental Leave

During the first 12 years of the child's life, the parents are entitled to have a period of absence to take care of their children. Parental leave can be taken by either parent for a maximum period of six months, or by one only for a maximum period of 10 months.

• Maternity Leave: employees must not work for two months before, and three months after, childbirth. This compulsory period of maternity leave can be shifted to up to five months used all after childbirth, if a medical certificate is produced.
• Paternity Leave: If the maternity leave period is not taken, the partner is entitled to the entire or residual period of maternity leave. This right does not apply in any other circumstances.

Sick Leave

In the event of employee illness or injury, Collective Bargains Agreements or individual contracts generally provide for a period of paid time off, during which the employee is entitled to keep their job and to receive their salary in the proportion and for the period set out in any applicable CBA or the individual employment contract. After this period, the employer can dismiss the employee by giving notice. This period is generally between six and 12 months and applies in cases of both a single period of sick leave and multiple periods.

Contracts can be terminated by any party giving notice. An employer can terminate the contract without notice for just cause, for example, where there is a serious violation of the employment contract, or with notice based on either a subjective or an objective reason. Any non taken holiday must be paid upon termination. Employees can appeal to a court if they considered the dismissal unjustified. Additional compensation may be due if the court deems the dismissal to be unfair.

Severance payment: 1 month’s salary for each year of seniority is due to employees upon the termination of the contract.

Notice Period

The employee's notice period will usually be set out in the collective labor agreement and is calculated in accordance with the employee's tenure, position and level in the company.