Italy

Last Update by Federico, 28 Jan 2025

You must log in to be able to download this document

Exchange Rate

19 Apr 2025

 

Cost of Living

Indicative value for a working adult in a city: Milan

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (EUR)
McDonalds Set Meal 7.90
Monthly Train and Bus Tickets 39
3 Bedrooms Rental (City Center) 2,700
3 Bedrooms Rental (Outskirt) 1,600

Current Inflation Rate

1.3%

Wage

Minimum Wages

  • No statutory national minimum wage in Italy.
    Wages are determined by the Labour Law Union regulations for each sector.

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (EUR)
Entry-Level
Fresh Graduate
 1,250
Mid-Level
5 Years
 2,000
Experienced & Managerial Level
10 Years
 3,500
Specialized & Senior-Level
15 Years
 5,000

Annual Salary Growth

3.7%

Statutory Contribution

Fiscal year for Statutory Contribution: 1st January - 31st of December
Statutory Contribution are applied on a country level basis.

Country Level

Type Employer Rates Employee Rates Notes
Social Security (INPS) 27%-31% 9.19% All staff
Includes: Pension, Healthcare, Unemployment, Disability, Family Leave.
Injuries at Work (INAIL) 0.4%-1% - All staff
Severance Pay (TFR) 7%-7.5% - All staff
13 monthly salary (Tredicesima) 1 month paid in December - All staff

Other Benefit

Other common employment benefits in Italy include:

  • 14th bonus wage, usually paid during the summer (Quattordicesima)
  • Additional life and medical insurance: Around 250 EUR per month
  • Additional retirement plan: Around 150 EUR per month
  • Car allowance: Around 75 EUR per month
  • Mobile allowance: Around 50 EUR per month
  • Gym allowance: Around 50 EUR per month
  • Electronic Food Voucher: usually 10-12 EUR a day (tax free up to 8 EUR a day)

Income Tax

Residents

  • Each region has different regional tax rates and municipality rates

Country Level

Taxable Income Rate
Up to 15,000 23%
15,001 - 28,000 25%
28,001 - 50,000 35%
50,000 + 43%

State/Province Level

Lombardy

Taxable Income Rate
Up to 15,000 1.23% Regional Tax + 0.8% Municipality Tax (Milan)
From 15,001 - 28,000 1.58% Regional Tax + 0.8% Municipality Tax (Milan)
From 28,001 - 50,000 1.72% Regional Tax + 0.8% Municipality Tax (Milan)
Over 50,000 1.73 Regional Tax + 0.8% Municipality Tax (Milan)

Non-residents

  • Tax for non-residents is the same as residents but only for the income generated in Italy

Working Hours

Statutory

There are no statutory work hours.

Typical practice

40 hours
Monday- Friday
8 hours a day, 5 days a week

Overtime

Cannot exceed 48 hours per week or 250 hours per year

  • 15% more pay between the 41st and 48th hour of work
  • 35% more pay for public holidays
  • 55% more pay for night shifts

Employment Contract

Permanent

Must state permanent and full or part time

Contract Format

Must be written (electronically or printed) in Italian

Payroll Currency

EUR

Probation

Entry level roles: 1-3 months
Senior staff and management: up to 6 months

Contract Period

No minimum duration

Termination

In Italy the termination process adheres to the following rules:

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation - 1 to 3 weeks depending on the CBA and job title - 1 to 3 weeks depending on the NCBA and job title - 1 to 3 weeks depending on the NCBA and job title
Notice Period - Regular Usually regulated by the applicable NCBA - Full-time entry-level staff with under 5 years' service: from 15 days to 1 month (depending on job title) - Full-time entry-level employees with over 5 years' service: one month to 6 months (depending on job title) Usually regulated by the applicable NCBA - Full-time entry-level staff with under 5 years' service: from 15 days to 1 month (depending on job title) - Full-time entry-level employees with over 5 years' service: one month to 6 months (depending on job title) Usually regulated by the applicable NCBA - Full-time entry-level staff with under 5 years' service: from 15 days to 1 month (depending on job title) - Full-time entry-level employees with over 5 years' service: one month to 6 months (depending on job title)
Severance Pay - Employers pay Trattamento di fine rapporto (TFR) - TFR is 1 year's salary / 13.5 with an additional 1.50% for each year of service and compensation for inflation - Employers pay Trattamento di fine rapporto (TFR) - TFR is 1 year's salary / 13.5 with an additional 1.50% for each year of service and compensation for inflation - Employers pay Trattamento di fine rapporto (TFR) - TFR is 1 year's salary / 13.5 with an additional 1.50% for each year of service and compensation for inflation

Public Holiday

11 Days + 1 day (differs per region and city)

Country Level

Date Name
01 Jan New Year's Day
06 Jan Epiphany
21 Apr Easter Monday
25 Apr Liberation Day
01 May Labor Day
02 Jun Republic Day
15 Aug Assumption of Mary
01 Nov All Saint's Day
08 Dec Feast of the Immaculate Conception
25 Dec Christmas Day
26 Dec St. Stephen's Day

Leave

Leave Type Entitlement Notes
Annual Leave - 20 working days (4 weeks)
- prorated for part time employees 		All staff
Sick Leave 180 calendar days maximum All staffs with full time contracts
Maternity Leave 5 months Expectant mothers with full time contracts
Paternity Leave 10 working days Expectant fathers with full time contracts
Parental Leave up to 11 months Both parents with full time contacts
Bereavement Leave 3 days All staff

Reference

Ready To Expand in Italy?

Have any questions? We’d love to hear from you

Contact Us