The Hardest Market ยท Italy

Italy's HR data

The rules and costs of employing people in Italy (Milan), from official sources, in English and Japanese.

25.3%women in management (2024, ILO)
1.32ร—employer's total cost on โ‚ฌ50,000 a year, as a multiple of salary
14public holidays (2026)

Employment rules

Statutory annual leave4 weeks minimum, plus CCNL leave hours
Public holidays (2026)14 days
Notice of dismissalSet by CCNL (about 15 days to 4 months)
Severance required by lawTFR on any exit; no statutory redundancy pay
Typical negotiated exitNo official benchmark; negotiated incentive plus TFR
ProbationUp to 6 months, in writing
Working hours40h/week; max 48h average
How hard is dismissal?Hard: unjustified dismissal costs 6-36 months' pay

Employer contributions

INPS pension contribution (employer)23.81%up to โ‚ฌ122,295 a year
Unemployment insurance (NASpI)1.31%up to โ‚ฌ122,295 a year
Severance accrual (TFR)6.91%

Employee contributions

INPS pension contribution (IVS)9.19%up to โ‚ฌ122,295 a year
INPS additional 1% above the first pension band1%on pay above โ‚ฌ56,224 a year, up to โ‚ฌ122,295 a year

Take-home pay and employer cost by annual salary

Annual salaryEmployee contributionsIncome taxTake-homeEmployer costCost รท salary
โ‚ฌ35,000โ‚ฌ3,217โ‚ฌ5,751โ‚ฌ26,032โ‚ฌ46,2121.32ร—
โ‚ฌ50,000โ‚ฌ4,595โ‚ฌ12,837โ‚ฌ32,568โ‚ฌ66,0151.32ร—
โ‚ฌ75,000โ‚ฌ7,081โ‚ฌ23,026โ‚ฌ44,893โ‚ฌ99,0241.32ร—
โ‚ฌ120,000โ‚ฌ11,666โ‚ฌ41,428โ‚ฌ66,906โ‚ฌ158,4361.32ร—

Single employee in Milan, Italian tax resident for the full 2026 calendar year, no dependants, open-ended contract with a private commerce/services company, salary only (annual gross including the 13th/14th month, paid evenly), first insured after 1995, no bonus or other income, standard credits only. Local resident case; the impatriati regime is not modelled.

Sources: [1] [2] [3] [4] [5] [6] [7] Checked 2026-11-07; 2026 rates.