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The complete guide to pay and work in Italy: contract types, CCNL and livelli, RAL vs net, tredicesima, IRPEF and INPS tax, TFR, Ferie, the tax return, and company benefits.
An Italian job offer comes with its own vocabulary — RAL, CCNL, livello, lordo and netto, TFR, tredicesima, Ferie. None of it is translated away on your payslip, so this guide explains each term in plain English while keeping the Italian word you will actually see. By the end you will understand exactly what a contract promises, what reaches your account, and what the State and your region take.
Want the numbers for your own offer? Our free Italian salary calculator turns a RAL into your real monthly netto, with IRPEF, INPS, and the regional and municipal addizionale for your exact comune.
Italian labour law recognises several contract types. The one you sign decides your stability, your notice period, and often your access to benefits. The two that matter most are lavoro subordinato a tempo indeterminato (permanent) and a tempo determinato (fixed-term).
| Contract | What it is | Key point |
|---|---|---|
| Tempo indeterminato | Permanent subordinate employment | No end date; strongest protection and the norm for stable roles |
| Tempo determinato | Fixed-term employment | Has an end date; renewals and total length are capped by law |
| Apprendistato | Apprenticeship (training + work) | Lower INPS rate (5,84%) and reduced pay band while you train |
| Somministrazione | Agency / temp work | You are hired by an agency and placed at a company |
| Lavoro intermittente (a chiamata) | On-call work | Paid for the hours actually called; common in hospitality |
| Part-time | Reduced hours | Can be orizzontale, verticale or misto; pay and Ferie pro-rated |
| Co.co.co. | Coordinated continuous collaboration | Para-subordinate; not a full employee, limited protections |
| Partita IVA | Self-employed / freelance | You invoice the client, manage your own tax and contributi |
| Tirocinio / stage | Internship | Training, not employment; paid via an indennità, not a salary |
A periodo di prova (probation) at the start lets either side end the contract with little notice. After it, a preavviso (notice period) set by your CCNL applies.
Almost every Italian employee is covered by a CCNL — Contratto Collettivo Nazionale di Lavoro, a national agreement between employer associations and unions. It sets your minimum pay (minimo tabellare), working hours, Ferie, notice periods, and extra months of salary. Which CCNL applies depends on your employer's sector, and it is named in your contract.
| Major CCNL | Sector | Extra months |
|---|---|---|
| Metalmeccanica Industria | Engineering, manufacturing, IT in industry | Tredicesima (13) |
| Commercio / Terziario | Retail, trade, services, offices | Tredicesima + quattordicesima (14) |
| Turismo / Pubblici esercizi | Hospitality, tourism | Tredicesima + quattordicesima (14) |
| Edilizia | Construction | Tredicesima + quattordicesima (14) |
| Studi professionali | Professional firms | Tredicesima + quattordicesima (14) |
Inside a CCNL you are placed in a livello of inquadramento — your classification. Higher livelli mean higher minimum pay and more responsibility. The recent Metalmeccanica renewal, for example, replaced the old numeric scale with letter levels, so an old 5S became the new B1; contracts often write both as "livello B1 (ex 5S)" during the transition. Your livello, not your job title, is what the minimo tabellare is tied to.
Your CCNL is far more than a minimum wage. For your livello it fixes a whole package of rights, and this is where things like overtime live. The main items to know:
Overtime is never automatic: it has to be requested or agreed, and your CCNL sets the premium. As a rough guide the *maggiorazione* runs from about +15% for ordinary weekday overtime up to +50% or more for nights, Sundays and public holidays — but the exact figures are contract-specific, so check the *lavoro straordinario* article of your own CCNL. Some contracts also let you take banca ore (time off in lieu) instead of being paid the extra.
Your contract states a RAL — Reddito Annuo Lordo, the gross annual salary. It is not what you take home. From the gross come INPS social-security contributions and income tax; what remains is the netto, shown on your monthly busta paga (payslip). The gap is large — often a third of the gross — and it depends on your income, your region and your comune.
See the exact split for any figure with the Italian salary calculator: enter a RAL and it breaks out INPS, IRPEF, the regional and municipal addizionale, and the net per month.
The RAL is paid across 13 or 14 mensilità, not 12. The tredicesima is an extra month's pay, usually in December; some CCNLs (Commercio, Turismo) add a quattordicesima around June/July. The annual total is the same either way — more mensilità simply means a smaller regular month and a lump sum later. These extra months are taxed like normal pay, but no detrazioni are applied to them, so the net on a tredicesima looks smaller than a regular month.
Two things come out of the gross. First, INPS contributions (9,19% for most private employees), which fund your pension and are deducted before tax. What is left is the imponibile fiscale — your taxable income — on which IRPEF is charged progressively:
| Taxable income | IRPEF rate (2026) |
|---|---|
| Up to €28.000 | 23% |
| €28.000 – €50.000 | 33% |
| Over €50.000 | 43% |
On top of IRPEF sit the addizionale regionale (0,70%–3,33% depending on region) and the addizionale comunale (up to 0,9%, set by your town). Against it you get the detrazioni da lavoro dipendente (a work tax credit that shrinks as income rises) and, for lower and middle incomes, the cuneo fiscale and the trattamento integrativo — a tax-free top-up. The salary calculator applies all of these automatically.
The headline IRPEF brackets are not what lands on your payslip. Several reliefs are applied automatically and pull your real tax rate well below the bracket rate, especially on low-to-middle incomes:
Put together, these mean a €30,000 RAL typically yields roughly €22,000–€23,500 netto a year — an *average* tax-and-contribution rate near 22–25%, not the 33% middle bracket. The exact figure depends on your region, comune and family, which is what our free Italian salary calculator works out euro by euro.
The INPS contributions aren't just a deduction: they fund your pension and a whole safety net. Your contributi (33% of your gross in total — 9,19% from you, the rest from your employer) pay for:
“When does it unlock?” The pension unlocks at pensione di vecchiaia — 67 years of age with at least 20 years of contributi (2026; the age edges up from 2027) — or earlier with pensione anticipata, which ignores age and needs 42 anni e 10 mesi of contributi for men, 41 anni e 10 mesi for women. Estimate what your contributi will actually pay with the Italian pension calculator.
Your RAL is not what you cost the company. On top of your gross salary the employer pays its own share of INPS, insures you against workplace accidents with INAIL, and sets aside your TFR every month. Add it up and the real cost — the *costo azienda* — is well above your gross.
| Layer | Roughly | What it is |
|---|---|---|
| Costo azienda | ~1.3–1.5 × RAL | Everything the company spends on you: your RAL + employer contributi + INAIL + TFR accrual |
| Employer INPS | ~24% office, up to ~30%+ industry/large firms | The employer's social-security share, paid on top of your pay (you pay 9.19% from your side) |
| INAIL | ~0.4% office, more for manual/risky work | Mandatory work-accident and occupational-illness insurance, entirely employer-paid |
| TFR accrual | ~7.4% of gross/year | Your severance, set aside each month and paid when you leave |
| RAL | your gross | What your contract states, before your own INPS and IRPEF |
| Netto | what reaches you | After your 9.19% INPS and income tax |
Two things follow from this. First, in a negotiation the company is thinking in *costo azienda*, so a request that looks small to you can be ~1.4× bigger on their side. Second, those employer contributi are not lost — they fund the same INPS that will pay your pension, so they are part of your deferred pay, not a tax on the business alone.
Dependents reduce your tax through the detrazioni per familiari a carico (art. 12 TUIR). A family member counts as *a carico* when their own income stays under €2.840,51 a year (€4.000 for children up to 24).
The TFR is deferred pay: a severance sum your employer sets aside every year and pays when the job ends, for any reason. Each year the amount added is roughly 6,91% of your gross (precisely, the year's pay divided by 13,5, per art. 2120 of the Codice Civile). Balances already accrued are revalued yearly by 1,5% plus 75% of ISTAT inflation, and that revaluation is taxed at a 17% imposta sostitutiva.
You choose where your TFR goes: left in the company (TFR in azienda) or paid into a pension fund (previdenza complementare / fondo pensione), where it is invested for your retirement. When paid out as severance, the TFR is taxed separately (tassazione separata) at roughly your average IRPEF rate, not added to the year's income.
New rule: for private-sector employees hired for the first time from 1 July 2026, if you do not choose within 60 days your TFR is enrolled automatically into complementary pension (adesione automatica). Make an active choice if you want it to stay in the company.
By law you earn at least four weeks of Ferie (paid holiday) per year — your CCNL may give more. At least two of those weeks should be taken in the year they accrue. On top of Ferie you accrue permessi — ROL (riduzione orario di lavoro) and ex-festività hours — short paid time off used in hours.
Separately, Italy has national public holidays (festività nazionali) when you do not work but are paid: 1 and 6 January, Easter Monday (Lunedì dell'Angelo), 25 April (Liberazione), 1 May (Festa del Lavoro), 2 June (Festa della Repubblica), 15 August (Ferragosto), 1 November, 8 December (Immacolata), 25 and 26 December. Each town also has its santo patrono day (for example 7 December in Milan, 29 June in Rome).
Being off sick is separate from your Ferie. You do not spend holiday days when you are ill: malattia is its own protection, with its own pay, procedure and job-protection rules. Using Ferie for a genuine illness would mean giving up both your rest days and the sick-pay you are owed.
The procedure — what you have to do. Getting sick leave is on you to start correctly. The steps:
Who pays. The first three days are the carenza: how they are paid is set by your CCNL (many employers pay them, often at 100% or 80%). From the fourth day INPS pays an *indennità di malattia* — broadly 50% of your average daily pay for days 4–20 and about 66.66% from day 21 — which your employer usually advances in your busta paga and recovers from INPS. Most CCNL then top the indennità up, often toward 100%, for a defined period.
How long you are protected. Your CCNL sets the periodo di comporto — the stretch of time your job is held open while you are sick (INPS pays the indennità up to about 180 days per calendar year for permanent staff). Go beyond the comporto and the employer may lawfully dismiss you. While on sick leave you must be at home for the visita fiscale (the INPS check-up doctor) during the *fasce di reperibilità*, 10:00–12:00 and 17:00–19:00 every day, holidays included. A separate track covers infortunio (a work injury), paid by INAIL from day one, and congedi — maternità, paternità and congedo parentale — paid as parental leave by INPS.
| Absence | What it covers | Paid by |
|---|---|---|
| Ferie | Your paid holiday — you choose when (with the employer) | Employer, full pay |
| Permessi / ROL / ex-festività | Short paid time off on top of Ferie | Employer |
| Malattia | Illness or injury outside work | CCNL (carenza) + INPS from day 4 |
| Infortunio | Injury or illness caused by work | INAIL, from day one |
| Congedo (maternità / parentale) | Having and raising a child | INPS |
Most employees do not need to do much: your employer (the sostituto d'imposta) already withholds IRPEF each month. You file a return to reconcile deductible expenses (medical costs, mortgage interest, renovations) and claim refunds. Employees and pensioners use the Modello 730, which the Agenzia delle Entrate now offers precompilato (pre-filled); people with a Partita IVA or other income use the Modello Redditi PF.
The 730 is typically due by 30 September. Its big advantage: any refund (or extra tax) is settled straight through your busta paga, usually from July onwards, with no separate payment. If you only have employment income and no changes, the precompilato can be accepted in a couple of clicks.
You do not have to take the payslip on trust. Two official portals show every euro of tax and contribution recorded in your name — log in to either with SPID, CIE or CNS.
Agenzia delle Entrate — your tax. In your cassetto fiscale you can see your Certificazione Unica (CU) — the official annual summary of your pay, the IRPEF withheld and the regional and municipal addizionali — plus your 730 precompilato (the pre-filled tax return, available from late April) and the payments made with F24. The CU is the single document that proves what tax came out of your salary for the year.
INPS — your contributions and pension. Your estratto conto contributivo on inps.it lists every contribution ever paid in your name, year by year. The La mia pensione futura simulator then turns that record into an estimate of your future pension, and you can flag any missing period with a *Segnalazione Contributiva*. For a quick estimate before you log in, our free Italian pension calculator runs the same sistema contributivo maths from your RAL and years of work.
Keep your busta paga each month and your Certificazione Unica each year — together they are your proof of pay, tax and contributi, and you'll need the CU to file or check your tax return.
Beyond salary, many Italian employers add welfare aziendale — benefits that are often tax-free up to a limit, so they are worth real money:
When you get an offer, read three things: the contract type (how stable it is), the CCNL and livello (what sets your minimum and your rights), and the RAL with the number of mensilità (your real yearly gross). Then run the RAL through the Italian salary calculator to see the monthly netto for your comune, and factor in the TFR and any welfare on top. If you are still preparing to apply, see our guide on working in Italy and build an Italian-style CV with the free résumé templates.
RAL is Reddito Annuo Lordo — your gross annual salary before INPS contributions and tax. It is the figure written in your contract and job offers; the netto (take-home) is lower. Convert one to the other with the Italian salary calculator.
A Contratto Collettivo Nazionale di Lavoro — the national agreement for your sector that sets minimum pay, hours, Ferie, notice periods and extra months of salary. Your contract names which CCNL applies and your livello within it.
An extra (13th) month of salary, usually paid in December. Some CCNLs also pay a quattordicesima (14th) around mid-year. They are part of your RAL, not a bonus on top, and they are taxed like normal pay but without the monthly detrazioni.
Trattamento di Fine Rapporto is deferred severance pay — about 6,91% of your gross set aside each year — paid when the job ends, however it ends. You can leave it in the company or send it to a pension fund (previdenza complementare).
At least four weeks a year by law, often more under your CCNL, plus permessi (ROL and ex-festività) counted in hours, and the national festività when you are paid but don't work.
Often not strictly, because your employer withholds IRPEF monthly, but filing a Modello 730 lets you reclaim deductible expenses; refunds arrive directly in your busta paga. People with a Partita IVA use the Modello Redditi PF.
Because INPS contributions (about 9,19%), IRPEF, and the regional and municipal addizionale all come out of the gross. The exact drop depends on your income, region and comune — the salary calculator shows the full breakdown.
Yes. A dependent spouse, children aged 21–30 and other dependent relatives give detrazioni that reduce your IRPEF. For children under 21 the benefit is the Assegno Unico from INPS instead, which is outside IRPEF.
No. Malattia (sick leave) is completely separate from Ferie. When you are ill your doctor sends a certificato medico to INPS and you are paid sick pay (carenza per your CCNL for the first three days, then an INPS indennità usually topped up by the contract) — you do not use up holiday days, and your job is protected for the periodo di comporto set by your CCNL.
Overtime must be requested or agreed, not just worked. It is paid at your hourly rate plus a maggiorazione set by your CCNL — roughly +15% for ordinary weekday overtime and up to +50% or more for nights, Sundays and public holidays. Some contracts let you take time off in lieu (banca ore) instead of the extra pay.
Log in to the Agenzia delle Entrate cassetto fiscale with SPID/CIE/CNS to see your Certificazione Unica (IRPEF and addizionali withheld) and your 730 precompilato, and log in to inps.it to see your estratto conto contributivo and the La mia pensione futura estimate. Your monthly busta paga and annual CU are your primary records.
Zubair Baqai is an AI engineer and the founder of Prezumi. He started it after researching what gets candidates interviews at companies like Google, Meta, Microsoft and Amazon. He writes Prezumi's guides on resumes, ATS screening and CV formats. About Prezumi
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