Minimum Wage

General

There is no statutory minimum wage in Italy. The sector usually sets minimum wages for each contractual level in the relevant national collective agreements (NCAs).

Payroll

Payroll Cycle

The payroll cycle in Italy is generally monthly and is paid on the 27th of each month.

13th Salary

Under Italian law, salary calculations are paid in 13 monthly instalments. The additional 13th instalment (“tredicesima”) is paid out each year alongside the December salary.

Some NCAs also include a 14th monthly instalment, normally paid in June.

Working Hours

General

Standard working hours within Italy are 8 hours per day, 40 hours per week.

Overtime

All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements etc.  In general, overtime maximum limits paid are as set in the NCA.

Working Week

Monday-Friday

Leave

Paid Time Off

The Civil Code outlines paid leave in Italy as a statutory minimum of 8 days paid leave a year, following completion of 1 year of service. This leave is in addition to any public holidays.  Minimum leave of all other employees is determined by their collective agreement, which generally provides paid annual leave of not less than four weeks per year.

Public Holidays

There are 11 national holidays and 1 regional holiday.

If a public holiday falls on a Sunday, the day is carried over to Monday or paid in lieu.

Sick Days

Employees in Italy are entitled to paid sick leave, paid for by the employer and subsequently the government.

For the first two periods of sickness per year, the employer pays the first three days at 100.00% of the regular salary rate of pay.  This reduces to 66.00% for the third period of sickness and 50.00% for the fourth. Any subsequent sickness in one year is unpaid.

The employee continues to receive 100.00% of the regular salary rate of pay from the fourth day onwards, paid as 50.00% by the employer and 50.00% by the Italian government from days 4 to 21. From day 22 onwards, the government pays 66.00%, and the employers’ payment reduces to 34.00%.

Maternity Leave

All female employees are entitled to 5 months of paid maternity leave, generally taken two months before the due date until three months after childbirth. The maternity leave before the due date can start at an earlier date than two months if the employee’s work is dangerous for her health or that of the unborn child or delayed until after childbirth.

The employee is entitled to 80.00% of her regular salary during maternity leave, which the employer pays and is subsequently reimbursed by the INPS.

In addition, a new mother can take up to six months of unpaid leave after maternity leave. Alternatively, if a mother chooses not to take parental leave after maternity leave, she can work 6 hours a day until the child is one year old.

Mothers whose income was lower than 8,145 EUR prior to maternity leave, will have their maternity indemnity increased by three months.

Paternity Leave

The father is entitled to receive 100.00% of the regular salary and compulsory paternity leave of 10 days within five months of the child’s birth.

Parental Leave

In Italy, an employee can take up to 10 months of unpaid parental leave.

Termination

Termination Process

Termination must be justified, with notice and per the NCA, unless it is through a mutual agreement that the employee is not fulfilling work requirements or has performed serious misconduct or due to economic factors.

Notice Period

In Italy, the notice period is dependent upon who initiated the termination, whether it is the employer or the employee. Should the employer terminate the contract, the notice required is 30 days for employees and 60 days for managers.  Should the employee terminate the contract, the notice required is 30 days for employees and 45 days for managers.

Severance Pay

In Italy, severance pay is applicable if the employer made the termination for authorised causes. Upon termination, the employee must be paid the TFR (Trattamento di fine rapporto), which the employer defers each month. The TFR is calculated according to the formula of a year’s overall salary divided by 13.5, plus 1.50% for each year of service plus compensation for inflation.

Probation Period

Statutory Probation periods in Italy are set per the job role of the employee. For employees with no managerial responsibilities, the probation period is three months, whereas, for all other employees/managers/supervisors, etc., the probation period is six months.

However, the probation period is commonly set in the relevant NCAs and maybe longer.

Common Benefits

General

• Mobile Phone Allowance
• Meal Vouchers
• Electronic vouchers (non-taxable up to € 8 in value each for each working day)
• Paper vouchers ( non-taxable up to € 4 in value for each working day)
• Supplemental health care contributions
• Car Allowances
• Wellness Allowance

VISA

VISA

Any foreigners coming to work in Italy require a work visa, a national visa, or a D-Visa, which allows entry into Italy within eight days of arriving in the country. However, additional permission is required (a residence permit – permesso di soggiorno) to stay in Italy. The potential employer must make all visa applications via a Nulla Osta document at the company province’s (Preffetura’s) Immigration Office (Sportello Unico d’Immigrazione – SUI.

The Italian government has a limited number of approved work permits and only accepts work permit applications occasionally (for a few months every one or two years), dependant on the status of Italy’s job market at that time. (Decreto Flussi).

VAT

General

The standard rate of VAT in Italy is 22.00%.