Last updated: 29 October 2026 · Written by the Peoitaly team, Employer of Record and payroll specialists in Italy.
Key takeaways
- Short answer: Italian salaries are agreed as a gross annual amount (RAL) and paid in 13 or 14 instalments, not 12.
- There is no statutory minimum wage: minimum pay is set by the national collective agreement (CCNL) for each sector and job level.
- A payslip is built from several items: base pay, contingency allowance, seniority increments, any individual top-up, overtime and allowances.
- Statutory benefits include at least 4 weeks of paid leave, paid sick leave, maternity and paternity leave, TFR severance pay and pension contributions.
Italian pay follows a structure that often surprises foreign employers. Salaries are discussed as yearly gross figures, paid in more than twelve instalments, and shaped by the collective agreement that applies to each role. This guide explains how wages are structured in Italy and which benefits every employee is entitled to by law. For the full cost to the employer, see our guide to employer costs in Italy.
Annual salary and instalments
Salaries in Italy are quoted as RAL (retribuzione annua lorda), the gross annual salary. The RAL is divided into 13 monthly payments, or 14 where the collective agreement provides for a 14th month. A RAL of €39,000 over 13 instalments therefore means €3,000 gross a month; over 14 instalments, about €2,786.
13th and 14th month’s pay
- 13th month (tredicesima): due to practically all employees and paid in December. It accrues month by month, so someone who joins in July receives about half of it.
- 14th month (quattordicesima): paid only where the collective agreement provides for it, for example in retail and tourism, usually in June or July. Where it applies, it cannot be removed by individual agreement.
In Italy, “annual salary” never means twelve equal payments. Plan cash flow for December and, where applicable, the summer.
Is there a minimum wage in Italy?
No. Italy has no statutory minimum wage. Minimum pay is set by the national collective agreements (CCNL) negotiated for each sector, such as retail, metalworking or IT services. Each agreement defines job levels and a minimum pay for each level, as well as working hours, the number of instalments, leave and notice periods.
Choosing the right CCNL is therefore the first step in any hire: two people doing similar work under different agreements can have different minimum pay and conditions.
What makes up an Italian payslip?
| Item | What it is |
|---|---|
| Base pay (paga base / minimo tabellare) | Minimum pay for the job level, set by the CCNL |
| Contingency allowance (contingenza) | A historical fixed component still shown in many CCNLs |
| Seniority increments (scatti di anzianità) | Periodic increases for years of service, where the CCNL provides for them |
| Individual top-up (superminimo) | Pay agreed above the CCNL minimum |
| Overtime and allowances | Extra hours, shifts, travel or role allowances |
Working hours and overtime
The standard full-time week is 40 hours, although many collective agreements set fewer. Average weekly working time, including overtime, cannot exceed 48 hours over the reference period. Overtime is paid at the higher rates set by the CCNL, and its yearly maximum is also set by the collective agreement or, failing that, by law.
Statutory benefits in Italy
- Paid annual leave: at least 4 weeks a year; it cannot be paid out instead of being taken during employment.
- Public holidays: national holidays and the local patron saint’s day are paid.
- Sick leave: paid partly by INPS and partly by the employer, depending on the CCNL. See our guide to sick leave in Italy.
- Maternity and paternity leave: compulsory maternity leave and paid paternity leave, mainly funded by INPS. See paternity leave in Italy.
- TFR: severance pay accrued every year and paid when employment ends. See TFR in Italy.
- Pension and insurance: INPS contributions and INAIL accident insurance. See the Italian pension system.
Hiring in Italy? We pick the right collective agreement and run compliant payroll from the first month.
Talk to PeoitalyFrom gross to net
From the gross monthly pay, the employer withholds the employee’s INPS contributions (about 9.19%) and income tax (IRPEF, plus regional and municipal surcharges), net of the tax credits the employee is entitled to. The employer then pays its own contributions on top. To see what a given salary means in net pay and total cost, use our salary calculator for Italy.
Frequently asked questions
How many salaries are paid in a year in Italy?
Thirteen, or fourteen where the collective agreement provides for a 14th month. The 13th is paid in December and the 14th usually in June or July.
Is there a minimum wage in Italy?
No statutory minimum wage. Minimum pay is set by the national collective agreement (CCNL) for each sector and job level.
Is the 13th month’s pay mandatory in Italy?
It is due to practically all employees and is part of the guaranteed pay. It is paid in December and accrues month by month.
How much paid leave do employees get in Italy?
At least four weeks a year by law. Many collective agreements add extra paid hours off (ROL and ex festività).
What is RAL?
RAL (retribuzione annua lorda) is the gross annual salary, including the 13th and, where applicable, the 14th month’s pay.
Employing people in Italy? We handle contracts, payroll and statutory benefits, and reply within 24 hours.
Book a callUpdated October 2026. This article provides general information; pay and conditions depend on the collective agreement that applies.
