Country facts
The Italian Republic is a member of the European Union and the Eurozone, the UN, the Group of Seven, the G20, NATO and the OECD.
Its nominal GDP in 2021 was 2.106 trillion USD, which makes it the eighth largest economy in the world. Its Human Development Index is at 0.892, which is categorized as very high, with a global ranking of 29th.
Capital
Rome
Currency
Euro (EUR)
Languages spoken
Italian
Population size (2020)
59,55 million
Ease of doing business (world bank ranking)
58
Cost of living index(2021)
73,11
Payroll frequency
Monthly
VAT – standard rate
22%
GDP – real growth rate(2020)
-8,87%
Employing in Italy
In order to pay out salaries in Italy, it is generally necessary to register a local company.
24 hours prior to the start of a new employment, the employer has to notify the public employment service (Centro per l’Impiego). As such, social security institutions INPS and INAIL are notified in accordance with the law.
Various collective labour agreements (CCNL) dictate the employer’s obligations. These agreements affect weekly work hours, minimum wages, probation periods and more. As such, it is wise to define a new employment contract together with a professional as it can have an important impact on your business.
Italy’s standard working hours are 8 hours per day (40 hours per week). Any additional work time spent by an employee has to be paid as overtime, which is further defined depending on the employment contract as well as the applied collective agreements.
List of Public Holidays - 2024
| Date | Holiday Name |
|---|---|
| 1 January | New Years Day |
| 6 Januray | January Epiphany |
| 31 Mars | Easter Sunday |
| 1 April | Easter Monday |
| 25 April | Liberation Day |
| 1 May | Labour Day |
| 2 June | Republic day |
| 15 August | Assumption of Mary |
| 1 November | All Saints Day |
| 8 December | Immaculate conception |
| 25 December | Christmas Day |
| 26 December | 2nd Day of Christmas |
Minimum wage
Italy has no nationwide statutory minimum wage. Instead, it is set by the respective National Collective Agreements.
Salary payouts
In Italy, payment of salaries takes place between the 31st of the current month or the 5th of the following month: i.e. the January salary will be paid on January 31st or February 5 at the latest.
For the payment of contributions and taxes, the deadline is the 16th of every month and the employer must have an Italian current account for the payments.
Italian law also dictates that salaries are paid in 13 monthly instalments, with the 13th instalment (known as la tredicesima) paid out yearly together with the December salary. Depending on the National Collective Agreement applied, some cases also call for a 14th monthly instalment, which is then usually paid out in June.
Taxes in Italy
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Italy.
Employer
Corporate income tax rate: 24%
Social Security : 29% – 32%
Injuries at Work Insurance (INAIL) : 0.40%
Total employer cost : 29.40-32.40%
Employee
Social Security : 10.00%
About Internago
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