Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Italian and use the Euro currency (EUR).
Working Hours
Standard working hours within Italy are 8 hours per day, 40 hours per week.
Overtime
All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements etc. In general, overtime maximum limits paid are as set in the NCA.
Public Holidays
If a public holiday falls on a Sunday, the day is carried over to Monday or paid in lieu. In addition to the below national holidays, there may be regional holidays that workers are also entitled to take off.
For the year 2024:
- 1 Jan: New Year’s Day (Monday)
- 6 Jan: Epiphany (Saturday)
- 31 Mar: Easter Sunday (Sunday)
- 1 Apr: Easter Monday (Monday)
- 25 Apr: Liberation Day (Thursday)
- 1 May: International Workers’ Day (Wednesday)
- 2 Jun: Republic Day (Sunday)
- 15 Aug: Assumption Day (Thursday)
- 1 Nov: All Saints’ Day (Friday)
- 8 Dec: Immaculate Conception (Sunday)
- 25 Dec: Christmas Day (Wednesday)
- 26 Dec: St Stephen’s Day (Thursday)
Annual Leave (vacation)
Minimum leave is determined by the applicable collective agreement, which generally provides paid annual leave of not less than four weeks per year.
Sick Leave
Employees in Italy are entitled to paid sick leave, paid for by the employer and subsequently the government.
For the first two periods of sickness per year, the employer pays the first three days at 100.00% of the regular salary rate of pay. This reduces to 66.00% for the third period of sickness and 50.00% for the fourth. Any subsequent sickness in one year is unpaid.
The employee continues to receive 100.00% of the regular salary rate of pay from the fourth day onwards, paid as 50.00% by the employer and 50.00% by the Italian government from days 4 to 21. From day 22 onwards, the government pays 66.00%, and the employers’ payment reduces to 34.00%. Employees are required to provide a medical certificate from a doctor from the first day of their illness.
Maternity and Paternity
Maternity Leave
All female employees are entitled to 5 months of paid maternity leave, generally taken two months before the due date until three months after childbirth. The maternity leave before the due date can start at an earlier date than two months if the employee’s work is dangerous for her health or that of the unborn child or delayed until after childbirth.
The employee is entitled to 80.00% of her regular salary during maternity leave, which the employer pays and is subsequently reimbursed by the INPS.
In addition, a new mother can take up to six months of unpaid leave after maternity leave. Alternatively, if a mother chooses not to take parental leave after maternity leave, she can work 6 hours a day until the child is one year old.
Mothers whose income was lower than 8,145 EUR prior to maternity leave, will have their maternity indemnity increased by three months.
Paternity Leave
The father is entitled to receive 100.00% of the regular salary and compulsory paternity leave of 10 days within five months of the child’s birth.
Paternal Leave
In Italy, an employee can take up to 10 months of unpaid parental leave.
With effect from 1st January 2023, the government issued a new law that introduces an extra month of parental leave, paid with an allowance equal to 80% of the employee’s salary. This month of enhanced parental leave must be used, alternatively by either parent, before the child reaches the age of six.
Other Leave
Bereavement Leave – In the event of the death or serious illness of a family member (up to the second degree), paid leave is granted up to a maximum of 3 days per year. The days of leave may be used by the employee within seven days of the death.
The worker is required to document the event with the relevant certification, the worker must inform the employer in advance of the event giving entitlement to the leave and the days on which it will be used.
Wedding Leave – Employees are eligible for a one-time period of 15 calendar days in the event of marriage.
Employee Severance and Terminations
Termination Process
Termination must be justified, with notice and per the NCA, unless it is through a mutual agreement that the employee is not fulfilling work requirements or has performed serious misconduct or due to economic factors.
Notice Period
In Italy, the notice period is dependent upon the party that initiated the termination, whether it is the employer or the employee. The length of the notice period is determined by the applicable NCBA, the length of the employment and the classification of the employee. According to some of the major NCBA in Italy, If the employer decides to terminate the contract, the notice period can range from 30 days to 12 months. However, if it is the employee who resigns, the length of notice required will vary from 30 days to 4 months.
Severance Pay
In Italy, severance pay is applicable if the employer made the termination for authorised causes. Upon termination, the employee must be paid the TFR (Trattamento di fine rapporto), which the employer defers each month. The TFR is calculated according to the formula of a year’s overall salary divided by 13.5, plus 1.50% for each year of service plus compensation for inflation.
Probation Period
Statutory Probation periods in Italy are set per the job role of the employee. For employees with no managerial responsibilities, the probation period is three months, whereas, for all other employees/managers/supervisors, etc., the probation period is six months.
However, the probation period is commonly set in the relevant NCAs and maybe longer.
Payroll Cycle
The payroll cycle in Italy is generally monthly and is paid on the 27th of each month.
There is no statutory minimum wage in Italy. The sector usually sets minimum wages for each contractual level in the relevant national collective agreements (NCAs).
13th Salary
Under Italian law, salary calculations are paid in 13 monthly instalments. The additional 13th instalment (“tredicesima”) is paid out each year alongside the December salary.
Some NCAs also include a 14th monthly instalment, normally paid in June.
Contributions
Employer Payroll Contributions
VISA
Any foreigners coming to work in Italy require a work visa, a national visa, or a D-Visa, which allows entry into Italy within eight days of arriving in the country. However, additional permission is required (a residence permit – permesso di soggiorno) to stay in Italy. The potential employer must make all visa applications via a Nulla Osta document at the company province’s (Preffetura’s) Immigration Office (Sportello Unico d’Immigrazione – SUI).
The Italian government has a limited number of approved work permits and only accepts work permit applications occasionally (for a few months every one or two years), dependant on the status of Italy’s job market at that time. (Decreto Flussi).
VAT
The standard rate of VAT in Italy is 22.00%.