Italy: Payroll & Employment Facts
Verified statutory employment facts for Italy, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Italy employer-of-record guide and the Italy country hub.
What is the minimum wage in Italy?
| National minimum wage |
Not available
|
|---|
What employer social contributions apply in Italy?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
7.17%
|
|---|---|
| Pension |
23.81%
|
| Healthcare |
0.00%
|
| INAIL - Workplace Accident Insurance |
Not available
|
| TFR - Trattamento di Fine Rapporto (Severance Pay) |
7.41%
|
| Annual contribution ceiling |
119,650.0 EUR
|
| Total employer burden |
30.98%
|
What notice and leave rules apply in Italy?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0 to 23 months | 4 weeks |
| 24 to 59 months | 8 weeks |
| 60 to 119 months | 12 weeks |
| 120+ months | 16 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
20 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
12 days
|
Is 13th-month pay required in Italy?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
Yes
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
No
|
How is severance calculated in Italy?
| Formula |
The statutory severance payment in Italy is the 'Trattamento di Fine Rapporto' (TFR), a form of deferred compensation due upon any termination of employment. The formula for annual accrual is the total annual gross remuneration divided by 13.5. The accumulated fund is revalued at the end of each year at a rate composed of a fixed 1.5% plus 75% of the annual increase in the ISTAT consumer price index for blue- and white-collar worker households.
|
|---|---|
| Per-year multiplier |
0.889 months of pay per year of service
|
| Minimum qualifying tenure |
0 months
|
| Calculation base |
Gross all non-occasional components of remuneration
|
Worked example
An employee with 5 years of service and a consistent annual gross salary of €35,400 (approx. £30,000) would be entitled to a TFR payment. The basic accrued amount, before the mandatory annual revaluation, is calculated as follows: Annual TFR Accrual: €35,400 / 13.5 = €2,622.22; Total Base Accrual over 5 years: 5 years * €2,622.22 = €13,111.10. Note: The final payable amount would be higher due to the mandatory annual revaluation of the accrued funds.