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Italian payroll is governed by sector CCNLs, mandatory TFR severance accrual (~6.91%/year), 13th-month salary, and high employer INPS contributions (~23–29%). No national minimum wage — the CCNL sets the floor. Rippling handles INPS, INAIL, and IRPEF filings.
Italy is the third-largest economy in the Eurozone with strengths in manufacturing, design, fashion, automotive, food and beverage, and a growing technology sector centered in Milan. Italian employment law is highly regulated through sector-level national collective agreements (CCNLs — Contratti Collettivi Nazionali di Lavoro), which govern pay minimums, overtime, notice periods, and supplementary benefits. Milan is the primary business hub; Rome, Turin, and Bologna are significant secondary markets.
| Contribution | Rate | Notes |
|---|---|---|
| INPS (Social Security) | ~23–29% | Varies by sector CCNL; includes pension, sickness, maternity |
| INAIL (Workers' Comp) | 0.4–8% | Risk-class dependent |
| CCNL supplementary funds | Varies | Per applicable CCNL (health funds, severance top-ups) |
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| Contribution | Rate | Notes |
|---|---|---|
| INPS (employee share) | ~9.19% | On gross wages |
| IRPEF (income tax) | 23–43% | Progressive 3-bracket system plus regional and municipal surcharges |
| Annual Income | Rate |
|---|---|
| Up to €28,000 | 23% |
| €28,001–€50,000 | 35% |
| Above €50,000 | 43% |
Plus regional surcharges (1.23–3.33%) and municipal surcharges (0–0.9%). Employer withholds IRPEF monthly and remits to Agenzia delle Entrate.
Dismissal requires just cause (giusta causa) or justified reason (giustificato motivo). Notice periods set by CCNL (1–6 months depending on seniority). TFR (severance): ~6.91% per year of service, paid on termination regardless of reason. Wrongful dismissal: reinstatement or indemnity of 2–32 months' salary.
TFR (Trattamento di Fine Rapporto) is Italy's statutory severance fund. Employers accrue approximately 6.91% of gross annual salary per year of service and pay it to the employee upon termination regardless of reason. Companies with 50+ employees must remit TFR to INPS or a supplementary pension fund rather than holding it. It is roughly one month's extra salary per year of service.
A CCNL (Contratto Collettivo Nazionale di Lavoro) is a sector-level national collective agreement negotiated between employer associations and unions. Over 900 CCNLs exist covering sectors from metalworking to technology. The applicable CCNL determines minimum salary by grade, overtime rules, notice periods, and supplementary benefits. Employers must apply the relevant CCNL even if employees are not union members.
Italy does not have a statutory national minimum wage. Minimum pay is set by the relevant sector CCNL for each job classification and seniority level. Italy has discussed introducing a statutory minimum (proposed at €9/hour) but it has not been enacted as of 2024. Employers must apply the CCNL minimum for the employee's grade.
Virtually all Italian CCNLs require a 13th-month salary (tredicesima), paid in December, equal to one month's gross salary. Many CCNLs (commerce, banking, some industrial sectors) also require a 14th-month salary, paid in June or July. These are pro-rated for partial years and must be budgeted from the start of the employment relationship.
