Italy

Employment

Employment contracts are written and usually for indefinite term. Fixed term agreements are also an option, but only permitted in certain types of employments.

Payroll

Salaries are paid on monthly basis for work between the first and last day of the month. Paydays are typically at the end of the month.

HR & Labor

Working Hours: Full time employees work 40 hours a week. Each employee is entitled to one paid day off during the week. Overtime is agreed by collective agreement at the time of hiring. Employees receive 200% of the regular wages if they work on holidays. Also depending on the employer, employees might be entitled to 13th and 14th salary. Minimum Age: Employees below 15 years of age cannot be hired.

Immigration

If the employee is not an EEA/EU national, they must obtain a workers permit prior to entering Italy.

Benefits

Benefits such as fuel card, bonuses, meal vouchers and eligibility for a company car (salary grade 15 and above) are available.

Minimum Wage

No national minimum wage

Pension Fund

Employer contributes 28-30% of regular wages.

Employees contribute 9.19% with salary ceiling of 100,324 EUR for anyone who started to contribute after Jan 1st, 1996. Anyone who started contributing prior to Jan 1st, 1996, there is no salary ceiling. For both cases, income exceeding 46,123 EUR per year, additional 1% contribution is added.

Severance Payments

Severance payment is 7.5% of annual salary.

Advance Notice

Advance notice is one month.

Termination Procedure

For regular office workers, the notice can be from one month to four months, for managerial positions it can be from even month if they worked in the company for less than two year and increased by 2 weeks for each year in the company.

Sick Days

Managers (dirigenti) are paid 100% of the regular salary by their employer for the first 12 months.

Employees (quadri & impiegati) are entitled to the following payouts:
- From day 4-10, employees are entitled to 50% of normal salary.
- From day 21, the employee has the right to 66% of normal salary.

Public Holidays

There are 12 official public holidays

Vacation Days

Employee is entitled to 4 weeks per year of paid vacation.

Maternity Leave

Female employees are entitled to five months maternity leave. This leave is typically taken two months before birth, and three months after. However, this can be changed to one month, and four months after if a medical certificate is provided.

In the case of a premature birth, the days of unused leave before childbirth are added to the postpartum maternity leave.

Paternity Leave

If the mother does not take maternity leave (due to death, infirmity, or the father having exclusive custody), the father is entitled to three months’ paternity leave after the birth of the child. These rules also apply if the mother is self-employed.

Parental Leave

Additional parental leave (up to six months) can be used until the child is 12 years old. Both parents can take such a parental leave up to a total of 10 months (11 if the father takes at least three months.

VAT

VAT is 22% standard rate.