In Italy, statutory rules in the Civil Code and labour decrees are filled out by national collective agreements (CCNL), which set pay scales, notice periods, overtime rates and much more for each sector. Here is what employers need to know about leave, pay, tax, social security and ending employment.
The law sets minimum leave, and the applicable collective agreement usually adds more, such as extra paid leave hours (permessi) and fuller sick pay. Maternity and paternity pay are funded by INPS, the national social security institute, and usually advanced by the employer through payroll.
At least 2 weeks must be taken in the year they accrue and the rest within 18 months after. The minimum cannot be paid out except on termination.
Normally 2 months before and 3 months after the birth, or all 5 months after it with medical approval. Paid at 80% of pay by INPS.
10 working days, 20 for multiple births, taken from 2 months before to 5 months after the birth. Fully paid.
Employees on sick leave keep their job for a protected period (periodo di comporto) set by the collective agreement. For most private sector employees INPS pays a sickness allowance, which the collective agreement typically requires the employer to top up. A doctor sends the medical certificate to INPS electronically.
Set up each Italian leave type in IceHrm with its own accrual, carry forward and approval rules, including ferie, permessi and the extra days your collective agreement grants. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Italy has no statutory minimum wage. Minimum pay for each job level is set by the national collective agreement for the sector, and employers generally apply the relevant CCNL even if they are not members of an employers' association.
Collective agreements can set shorter normal hours or average them over longer periods.
Including overtime, averaged over 4 months (extendable by collective agreement). Employees get 11 hours' daily rest.
A 13th month (tredicesima) is paid in December under all collective agreements. Some sectors, such as retail, also pay a 14th in June or July.
Overtime premiums and limits are set by the collective agreement. Where the agreement is silent, overtime is limited to 250 hours a year and must be agreed with the employee.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the premiums in your collective agreement are applied to what was actually worked. Time & attendance →
Employees pay national income tax (IRPEF) at progressive rates, plus regional and municipal surcharges. The employer acts as withholding agent (sostituto d'imposta), deducts tax each month, and issues each employee an annual certificate of income and tax (Certificazione Unica).
| Taxable income | Rate |
|---|---|
| Up to €28,000 | 23% |
| €28,001 – €50,000 | 33% |
| Over €50,000 | 43% |
Regional surcharges generally range from 1.23% to 3.33% and municipal surcharges from 0% to 0.9%, depending on where the employee lives.
Employers register with INPS and pay both their own contributions and the employee's share, which is withheld from pay. Exact rates depend on the sector, the size of the business and the employee's category.
Covers pension, unemployment, sickness, maternity and other funds. The employee pays around 10% on top.
Each year the employer sets aside annual pay divided by 13.5, revalued annually and paid out when employment ends or to a pension fund.
Compulsory workplace accident insurance, paid by the employer at a rate based on the risk of the work.
Build Italian pay the way you already structure it, with your own salary components, deductions and formula columns, such as a TFR accrual column and 13th month instalments. Want to know how well IceHrm handles payroll calculations for Italy? Contact us or see Payroll →
Outside probation, an employer can only dismiss for just cause (giusta causa), which allows dismissal without notice, or for a justified reason relating to the employee's conduct or to the organisation of the business. The dismissal must be in writing and state the reasons. Remedies for unfair dismissal depend on the size of the employer and when the employee was hired.
Notice periods are not fixed by statute. They are set by the applicable collective agreement and depend on the employee's level and length of service, from a few days for junior staff to several months for managers. Notice can be replaced by a payment in lieu.
Every departing employee receives their accrued TFR severance fund, whatever the reason for leaving, plus pay for untaken leave and the accrued portion of the 13th (and any 14th) month. Additional compensation is only due where a court finds the dismissal unlawful or under a settlement.
Dismissal is prohibited during pregnancy and until the child is one year old, and on marriage, except in limited cases such as just cause or closure of the business.
Italy has 12 national public holidays, including the feast of St Francis of Assisi on 4 October, restored as a national holiday from 2026. Each town also celebrates its patron saint's day as a local holiday.
Employees who work on a public holiday are paid a premium or given time off under their collective agreement. When a holiday falls on a Sunday, collective agreements usually provide an extra day's pay.
Leave groups give each office its own holiday calendar, so staff in Milan, Rome and Turin each get their own patron saint's day on top of the national holidays automatically. Holiday calendars →
Employers must give new employees written information on their main terms of employment when they start, under the Transparency Decree, and must notify each hire to the authorities electronically through the mandatory communication (Comunicazione Obbligatoria Unilav) by the day before work begins.
A probation period must be agreed in writing and cannot exceed 6 months; collective agreements often set shorter limits by job level. A fixed-term contract can be agreed freely for up to 12 months. It can last up to 24 months only where a collective agreement allows it, for specific technical, organisational or production needs identified in the applicable agreement, or to replace other workers. Without these conditions, a contract that runs past 12 months becomes permanent.
Send contracts and written terms for e-signing, store them on the employee's record, track probation and fixed-term end dates, and use onboarding task lists so the Unilav notification is filed on time. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Italy, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Italy? Talk to us.
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