Easily manage employment in Italy

Payroll services in Italy

Italy has a strong economy with key industries in automotive, fashion, and manufacturing. With specific labor laws and tax regulations, employers in Italy must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Italy

Employers in Italy must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Italy does not have a statutory minimum wage; wages are determined by collective agreements.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Italy is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated at 125% of the regular wage for extra hours and 150% for work on public holidays.

Taxation and social security contributions

• Personal income tax: Italy has a progressive income tax system with rates ranging from 23% to 43% depending on income levels.
• Employer contributions:
• Social security: 30% of the gross salary.
• Employee contributions:
• Social security: 10% of the gross salary.
• Corporate tax: The corporate income tax rate in Italy is 24%.
• Tax reporting: Employers must file payroll taxes and contributions with the Italian Revenue Agency regularly.

Payroll compliance in Italy

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to Italy’s labor laws and tax regulations to avoid penalties.

Run payroll in Italy with Remote

Managing payroll in Italy requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.