The individual income tax ranges from 0% to 43%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The employer cost is generally estimated at 38% of the employee salary. For employees classified in the Dirigente category, an additional estimated EUR 1,341.84 must be paid.

• Social Security - 23.81%
• Family Allowances - 0.68%
• General Fund - 1%
• Sickness Benefit 2.44%
• Maternity - 0.24%
• TFR Fund (Termination Severance Fund)  7.40%
• TFR (Termination Severance Fund) Guarantee Contribution - 0.20%
• Employment Insurance - 1.61%
• Injuries at Work Insurance - 0.40%

Additional employer costs for Dirigente employees

• Dirigente - Fondo Mario Negri - 12.86%
• Dirigente - Fondo Mario Negri - supplementary - 2.31%
• Dirigente - Fondo Mario Besusso - 5.51%
• Dirigente - Fondo Pastore EUR 358
• Dirigente - Tertiary Management Training Fund EUR 24

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 250 hours of overtime per year. For additional hours, employees are paid:

• 150% of the hourly rate, the first 8 hours.
• 200% of the hourly rate, the following hours.
• 150% of the hourly rate for overtime night work excluding regular duty shifts (from 10 pm to 6 am)
• 130% of the hourly rate, on holidays and Sundays.

Dirigente employees are not entitled to overtime pay.

Employees are entitled to paid sick leave for up to 180 days. This leave is paid at different rates and by different payers depending upon length:

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Italy can be complex. In exceptional cases, there is at-will termination in Italy for employers outside the probation period and generally, the termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Without cause (exceptional cases)
• By the expiration of the contract

The minimum notice period is 30 days and will be increased according to the length of the employment, category of the employee, and type of termination.

Termination by the employee - executive managerial positions (Quadri and Level I)

• 45 days if the length of service is up to 5 years
• 60 days if the length of service is more than 5 years and up to 10 years
• 90 days if the length of service is more than 10 years

Termination by the employee

• 20 days if the length of service is up to 5 years
• 30 days if the length of service is more than 5 years and up to 10 years
• 40 days if the length of service is more than 10 years

Termination by the employer - executive managerial positions (Quadri and Level I)

• 60 days if the length of service is up to 5 years
• 90 days if the length of service is more than 5 years and up to 10 years
• 120 days if the length of service is more than 10 years

Termination by the employer

• 30 days if the length of service is up to 5 years
• 45 days if the length of service is more than 5 years and up to 10 years
• 60 days if the length of service is more than 10 years

In Italy, there is no severance pay or redundancy compensation as such. However, upon the termination of the employment relationship, the employee receives the so-called TFR (Trattamento di Fine Rapporto), which is a part of workers' wages whose payment is deferred upon the termination of the employment relationship.

Hence, it cannot be considered proper severance pay, since it is constituted by a certain amount of salary set aside each month.

The TFR is calculated according to the formula of a year's overall salary divided by 13.5, plus 1.5% for each year of service plus compensation for inflation.

The TFR must be paid to the worker in any case of termination of the employment relationship.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Italy celebrates both 12 national and 10 regional holidays based on the location of the employee.

National public holidays include:

• New Year's Day
• Epiphany
• Easter Sunday
• Easter Monday
• Liberation Day
• Labor Day
• Republic Day
• Assumption of Mary
• All Saints' Day
• Feast of the Immaculate Conception
• Christmas Day
• St. Stephen's Day

Contracts must be in Italian and can be bilingual. To prepare the employment agreement, the employee will have to provide information about their previous employment to select the classification that can be dirigenti, quadri, or impiegato. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Category of the employee
• Termination conditions