Employing in Italy.

Minimum wage

Italy has no statutory minimum wage. Under a decree-law in force since 1 May 2026, fair pay is the total pay package of the sector's leading national collective agreement (CCNL).

No statutory minimum wage · from 1 May 2026pay floor = total pay package (TEC) of the sector's national collective agreement (CCNL) signed by the comparatively most representative unions and employer bodies

• Decree-Law 62/2026, art. 7(1): collective bargaining is the instrument for fair pay ('salario giusto') under Constitution art. 36.
• Art. 7(2)-(3): reference is the total economic treatment (TEC) of the CCNL signed by the comparatively most representative national organisations for the sector; other CCNLs may not pay a lower TEC.
• Art. 7(4): sectors with no collective agreement may not pay less than the most closely connected leading CCNL.
• Art. 7(4-bis), added by conversion Law 112/2026 (in force 2026-06-28): TEC covers all fixed and continuous pay items, including additional monthly payments and contractual welfare; discretionary and variable pay are excluded.
• Art. 7(5): the decree's hiring incentives require individual pay not below that TEC.

Employer social security contributions

Employers pay 23.81% of pay for pensions (33% in total with the employee's 9.19%), plus sector-dependent INPS items and INAIL accident insurance; pensionable pay is capped at EUR 122,295 for staff insured from 1996.

Pension (IVS) 23.81% employer share of 33%, plus sector-based INPS items and INAIL; cap EUR 122,295 · from 1 January 2026percent of gross pay, 2026; annual pensionable-pay cap for staff first insured after 31 Dec 1995

• IVS pension rate for the employees' fund (FPLD): 33% in total, of which 9.19% employee (INPS circ. 23/2007); employer share 23.81% by difference.
• Employee pays an extra 1% on pay above the first pensionable band: EUR 56,224 a year (EUR 4,685 a month) in 2026.
• Other employer items (unemployment, sickness, maternity, family allowance, wage-guarantee funds) are excluded or vary by sector, size, legal form and worker category; INPS does not publish a single total.
• INAIL accident premium: rate set by the tariff item for the activity (DM 27 February 2019), adjusted for the firm's accident record; self-assessed by 16 February each year.
• 2026 annual ceiling (massimale) EUR 122,295 for workers first insured after 31 Dec 1995 or who opt for the contributory system; 2026 minimum daily contribution base EUR 58.13.

Our sum of the published rates: the 33% pension (IVS) rate less the employee share of 9.19% leaves 23.81% for the employer; the other INPS items and INAIL vary by sector and size, so no total employer rate is given.

Changes coming, end of January 2027: The INPS circular with the 2027 contribution ceiling; the 2026 circular was dated 30 January 2026. Expected Source: Circolare numero 6 del 30-01-2026 - Determinazione per l'anno 2026 del limite minimo di retribuzione giornaliera e aggiornamento degli altri valori per il calcolo di tutte le contribuzioni dovute in materia di previdenza e assistenza sociale per la generalità dei lavoratori dipendenti

Payroll tax withholding and filing

Employers withhold income tax and pay it via F24 by the 16th of the next month; annual returns to the Agenzia delle Entrate are the Certificazione Unica (16 March) and Modello 770 (31 October).

Employer withholds (sostituto d'imposta); F24 by the 16th of the following monthmonthly payment; annual Certificazione Unica (16 March) and Modello 770 (31 October) to the Agenzia delle Entrate

• Authority: Agenzia delle Entrate, https://www.agenziaentrate.gov.it
• Withholding agents (sostituti d'imposta) are those listed in DPR 600/1973 art. 23; payment by the 16th under D.Lgs. 241/1997 art. 18 (DPR 602/1973 art. 8: month after the withholding).
• Certificazione Unica 2026 (tax year 2025): to the employee and transmitted to the Agenzia by 16 March 2026.
• Modello 770/2026: by 31 October 2026 (2 November 2026 in practice, as 31 October fell on a Saturday); from tax year 2025, withholding agents with up to five employees may use a simplified data system instead (D.Lgs. 1/2024 art. 16).
• Social security (INPS): contributions paid by the 16th of the following month (F24); monthly UniEmens return by the last day of the following month.

Changes on 1 January 2027: The Consolidated Act on tax payments (Legislative Decree 33/2025) takes effect; the deadline of the 16th of the following month does not change. Published Source: DECRETO LEGISLATIVO 24 marzo 2025, n. 33 - Testo unico in materia di versamenti e di riscossione

Salary payments a year and holiday allowance

A 13th month is binding by decree for industrial employers and otherwise comes from national collective agreements; some agreements, such as the commerce and services CCNL, add a 14th month.

13 (13th month); 14 under some CCNLspayments a year

• DPR 1070/1960 makes the 1946 industry interconfederal agreement binding on all employees of industrial firms; its art. 17 grants the Christmas bonus (gratifica natalizia, 200 hours) to blue-collar and the 13th month to white-collar staff, pro rata for part years.
• Outside industry, additional monthly payments are set by the CCNL; DL 62/2026 art. 7(4-bis) counts them ('mensilità aggiuntive') in the fair-pay package.
• 14th month: by agreement only, e.g. the Confcommercio tertiary CCNL (CNEL code H011), per the CNEL study of March 2026.
• No statutory holiday allowance separate from pay was identified.

Paid annual leave

Employees are entitled to at least four weeks' paid annual leave; at least two weeks are taken in the year earned and the rest within 18 months after it.

4 weekspaid annual leave, minimum, whatever the working week (20 working days on a five-day week)

• D.Lgs. 66/2003 art. 10(1): at least four weeks a year; two weeks (consecutive if the employee asks) in the year of accrual, the other two within the next 18 months, unless the CCNL provides otherwise.
• Art. 10(2): the four-week minimum cannot be replaced by pay in lieu except on termination.
• CCNLs may grant more.

Sick pay

INPS pays sickness benefit from day 4: 50% of average daily pay to day 20, then 66.66% up to 180 days a year, advanced by the employer; the first three days depend on the CCNL.

INPS from day 4: 50% to day 20, 66.66% to day 180; advanced by employer; days 1-3 per CCNLpercent of average daily pay; maximum 180 days a calendar year (permanent contracts)

• Days 1-3: borne entirely by the employer if the employment contract (CCNL) provides for it.
• Benefit 50% from day 4 to day 20 and 66.66% from day 21 to day 180.
• Maximum 180 days per calendar year on permanent contracts; on fixed-term contracts, days worked in the previous 12 months (minimum 30, maximum 180).
• Usually advanced by the employer in the payslip and offset against contributions (conguaglio via UniEmens).
• INPS lists the benefit for blue-collar workers in industry and blue- and white-collar workers in the tertiary and services sector; other categories follow their sector rules and the CCNL.

Running payroll without a local entity

A foreign employer without an Italian permanent establishment need not withhold Italian income tax, but must pay Italian social contributions for staff working in Italy and register with INPS as an employer.

INPS employer registration (matricola) for contributions; no Italian tax withholding without a permanent establishmentregistration

• Tax: non-resident companies are withholding agents only for pay through an Italian permanent establishment or fixed base; without one, no withholding duty (Agenzia delle Entrate ruling 312/2019, citing DPR 600/1973 art. 23 and Finance Ministry circ. 326/1997).
• Caution: staff who habitually conclude contracts for the company may create a permanent establishment (personal PE), which would bring withholding duties.
• Social security: INPS states that for an employee of an Italian or foreign employer operating in Italy, contributions are paid in Italy under the rules for employees.
• Registration: online INPS 'Iscrizione e Variazione azienda' procedure using the employer's codice fiscale, directly or through an authorised intermediary (labour consultant, Law 12/1979 art. 1); INPS then issues the matricola.

Being confirmed with the authority: how an employer with no establishment in Italy registers with INPS and pays the contributions. The tax position is confirmed by a ruling of the Agenzia delle Entrate.

Pension

Contributions fund the INPS state pension; employers also accrue severance (TFR) and, since 1 July 2026, enrol first-time private-sector hires automatically in a supplementary pension fund unless they opt out within 60 days.

INPS state pension via IVS contributions; TFR severance accrual; auto-enrolment of first-time private-sector hires since 2026-07-01 (60-day opt-out) · from 1 July 2026scheme

• State pension: INPS, financed by the 33% IVS contribution (see employer_social_security).
• TFR (Civil Code art. 2120): on any termination, a yearly accrual equal to annual pay divided by 13.5, revalued each 31 December at 1.5% plus 75% of the ISTAT price index increase.
• D.Lgs. 252/2005 art. 8(7)-(7-quinquies), as amended by Law 199/2025: first-time private-sector hires (domestic workers excluded) join automatically the collective fund in the applicable agreements (if several, the one with most members in the firm; if none, the residual fund) with the whole TFR and the contractual employer and employee contributions.
• Opt-out within 60 days of hiring (keep TFR under art. 2120 or choose another fund); payments start the month after the 60 days, backdated to the hiring date.
• Employee contribution not compulsory if annual gross pay is below the INPS social allowance (assegno sociale).
• Hires who are not first-time and already have a TFR-fed fund are also enrolled automatically unless they choose within 60 days (art. 8(9-bis)).
• Deduction limit for supplementary pension contributions raised from EUR 5,164.57 to EUR 5,300 from tax year 2026 (art. 8(4)).

Probation and notice

Probation may not exceed six months, or less under the collective agreement, and is proportionate for fixed-term contracts; statutory notice exists but its length is set by the collective agreement (CCNL).

Probation max 6 months (fixed-term: 1 day per 15 calendar days, 2-15 days up to 6 months, max 30 days for 6-12 months); notice length set by CCNL · from 12 January 2025maximum probation; statutory notice duty with length by collective agreement

• Civil Code art. 2096: probation must be agreed in writing; either party may end it without notice or indemnity.
• D.Lgs. 104/2022 art. 7(1): probation may not exceed six months, subject to shorter CCNL terms.
• Art. 7(2), as amended by Law 203/2024 art. 13 (in force 12 January 2025): fixed-term contracts get one day of actual work per 15 calendar days, at least 2 and at most 15 days for contracts up to six months, at most 30 days for six to twelve months; no new probation on renewal for the same duties.
• Civil Code art. 2118: either party may end an open-ended contract by giving notice on the terms set by the 'norme corporative', custom or equity (today the CCNL); pay in lieu if no notice is given.