Italy

Last Update by Federico, 04 Jun 2024

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Exchange Rate

13 Jun 2024

 

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 7.50
Monthly Train and Bus Tickets 35
3 Bedrooms Rental (City Center) 2,700
3 Bedrooms Rental (Outskirt) 1,600

Current Inflation Rate

0.6%

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
1250
Mid-Level
5 Years
1,850
Experienced & Managerial Level
10 Years
3000
Specialized & Senior-Level
15 Years
5000

Annual Salary Growth

4%

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) 1%-1.5% - All staff
Severance Pay (TFR) 7%-7.5% - All staff
13 monthly salary 1 month paid in December - All staff

Other Benefit

Other common employment benefits in Italy include:

  • 14th bonus wage
  • 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

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.
40 Hours
8 hours a day, 5 days a week

Typical practice

40 hours
Monday- Friday

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

Probation

Employees without managing functions: 1 -3 months
All other employees: 6 months

Termination

Varies depending on contract type, seniority, role, employee’s level of qualification and the guidelines of each CCNL (labor Union).

  • Notice periods:
    - 8 days for full-time entry-level employees with > 5 years service in the same company
    - 15 days for full-time entry-level employees with < 5 years service in the same company
    - Employers are required to pay severance

Public Holiday

11 Days + 1 day (differs per region)

Country Level

Date Name
01 Jan New Year's Day
06 Jan - 06 Jan Epiphany
31 Mar Easter
01 Apr Easter Monday
25 Apr Liberation Day
01 May Workers' Day
02 Jun - 02 Jun Republic Day
15 Aug - 15 Aug Assumption of Mary
01 Nov All Saints' Day
08 Dec - 09 Dec Feast of Immaculate Conception
25 Dec Christmas Day
26 Dec Saint Stephen's Day

Leave

Leave Type Entitlement Notes
Annual Leave 20 working days (4 weeks) All staff with full time contracts
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

Reference

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