Italy

• New Year's Day
• Epiphany
• Easter Monday
• Liberation Day
• Labour Day
• Republic Day
• Ferragosto
• All Saints' Day
• Immaculate Conception
• Christmas Day
• St. Stephen's Day *Dependent on city/village

Working Hours

Standard working hours are eight hours a day, 40 hours a week with a maximum of 48 hours over seven days.

Minimum Wage

There is no statutory minimum wage in Italy. Wages are often negotiated in collective bargaining agreements.

Employee Tax

Annual income	Tax rate
Up to EUR 15,000	23%
EUR 15,001 - 28,000	25%
EUR 28,001 - 50,000	35%
More than EUR 50,000	43%
Social security contribution	10%

Bonuses

All employees are entitled to a 13th-month salary (also known as tredicesima mensilità), which is paid in December.

Each category of work in Italy has a National Collective Contract, which has been agreed by the trade union relevant to the particular industry. This is not usually issued to employees. Instead, the employer will issue an employment letter which refers to the applicable National Collective Contract.

Casual, permanent, and fixed-term contracts are permissible in Italy.

Annual Leave

Minimum of 26 days’ paid holiday per year. Saturday is considered a working day for the purpose of calculating annual leave, so the annual entitlement is approximately 21.66 days plus Saturdays.

Sick Leave

The amount of sick leave and rate of pay depends on how many instances of sickness absence the employee has per year.

For the first two absences of up to three days each, they will receive 100% of their salary. This is reduced to 66% for the third absence and 50% for the fourth. No payments are made for further sickness absences.

After four days, the employee received 75% of their salary. From day 20 to 180, the employee will receive 100% of their salary.

Parental Leave

• Maternity leave: at least five months' leave, paid by the INPS at a rate of 80% of the salary while the employer pays the difference.
• Paternity leave: up to three days' paid leave.
• Parental leave: parents can take up to six months of leave each, paid at 30% of their salary.

Termination Process

Indefinite contracts can usually only be terminated by the employer, if they have just cause or justified grounds. These usually amount to a breach of contract or serious misconduct.

Fixed-term contracts can only be terminated by mutual agreement or for just cause.

Employees can also terminate the contract by giving notice in line with legal requirements.

Severance Pay

There are four mandatory payments that must be made at the end of a contract, irrespective of the reason for dismissal:

• Severance pay (also known as Trattamento di Fine Rapporto, or TFR)
• Unused annual leave
• Accrued 13th and 14th salary
• Notice pay (by mutual agreement)

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