Italia — Calendario laboral, salario e IVA

Italy operates a standard forty-hour workweek across most sectors, with the working day typically running from nine in the morning to six in the evening with a one-hour lunch break. The pace varies sharply by region: Milan and the industrial north of Lombardy and Emilia-Romagna run on a Northern European cadence, while Rome and the southern half of the peninsula maintain a more traditional rhythm with longer lunch breaks and later finishes that compensate.

Italian collective labour agreements (contratti collettivi nazionali di lavoro) play a much larger role than in many other EU countries. Each sector has its own CCNL that sets minimum salaries, working hours, leave entitlements and trial periods, and negotiating an Italian employment contract that ignores the relevant CCNL exposes the employer to significant retroactive liability. When evaluating an Italian role, the CCNL applicable to the company sector is as important as the employer's individual offer.

Statutory paid leave is twenty-six working days for most employees (counted in working days under a six-day week, equivalent to about four-and-a-half weeks under a five-day week), although CCNL provisions often extend this. The thirteenth-month payment (tredicesima mensilità) is universal and paid in December, and many CCNLs add a fourteenth payment (quattordicesima) in June, particularly in commerce, hospitality and banking sectors.

Italy observes twelve public holidays nationwide: New Year's Day, Epiphany, Easter Monday, Liberation Day on 25 April, Labour Day, Republic Day on 2 June, Assumption on 15 August (Ferragosto), All Saints' Day, Immaculate Conception on 8 December, Christmas Day, Boxing Day and Saint Stephen's Day. In addition, each city celebrates a patron saint's day that is recognised as a local public holiday in that municipality (Saint Ambrose in Milan on 7 December, Saint John the Baptist in Florence on 24 June, Saints Peter and Paul in Rome on 29 June, Saint Mark in Venice on 25 April).

Ferragosto on 15 August anchors the Italian summer holiday season. The week containing 15 August and the week before are traditionally a near-total business shutdown, with most non-tourism businesses closed and remaining offices operating at minimal capacity. International project planners should expect Italian responsiveness to drop sharply between roughly 5 and 25 August every year and adjust delivery commitments accordingly.

When a public holiday falls on a Sunday in Italy, no substitute day is granted in the private sector, although certain CCNLs require an additional vacation day in compensation. The cultural concept of fare il ponte (making the bridge) operates similarly to France and Belgium: a Tuesday or Thursday holiday routinely turns into a four-day weekend, and the industrial calendar accounts for this in capacity planning.

Italian payroll combines national income tax (IRPEF) with regional and municipal additional taxes, employee social security contributions of roughly nine to ten percent of gross, and a separate severance accrual called TFR (trattamento di fine rapporto) that the employer sets aside each month. TFR functions as deferred compensation: employees receive it as a lump sum on termination, retirement or selected qualifying events such as buying a first home or funding medical expenses.

Employer-side payroll costs are substantial but vary widely by sector and region. As a working approximation, full employer cost in Italy is between 1.30 and 1.40 times the gross salary, with INPS social contributions, INAIL accident insurance, regional payroll levies and the TFR accrual together producing the gap. Specific CCNLs add further costs, such as sectoral training funds and supplementary health insurance contributions.

The Italian wage system is more rigid than in many EU countries because pay tables for each level (livello) are fixed in the relevant CCNL. A negotiation typically focuses on level placement rather than precise salary figures, and a request for a cash raise above the level minimum is more often answered with benefits, ticket restaurant vouchers, additional leave or a fourteenth-month payment than with a higher monthly gross.

Italy applies a standard VAT (IVA) rate of twenty-two percent, with reduced rates of ten percent (most food, certain tourism services, some renovation work on residential property), five percent (a narrow set of social services and basic medical products) and four percent (basic food staples, books, certain medical aids and the first home of a primary residence purchase). The four-tier structure is among the most complex in the EU and a frequent source of cross-border invoicing errors.

Italy was the first EU country to mandate full B2B and B2C electronic invoicing through the central Sistema di Interscambio (SdI) platform, in force since 2019. Every invoice issued by an Italian VAT-registered business must be transmitted in the standardised XML FatturaPA format through SdI, which validates content and forwards it to the recipient. Foreign businesses selling to Italian VAT-registered customers should ensure their invoicing workflow is compatible or use an SdI-certified intermediary.

The Italian regime forfettario is a flat-tax simplified regime for small businesses with annual revenue below 85,000 euros. It applies a fifteen percent flat tax rate (reduced to five percent for the first five years of business activity for new entrants meeting specific conditions) and exempts the business from VAT obligations. Many freelancers and consultants use this regime for the first several years before transitioning to ordinary taxation when revenue grows above the ceiling.

When budgeting an Italian hire, identify the applicable CCNL early. The CCNL determines the minimum gross salary, working hours, notice period, trial period, leave entitlement and many supplementary benefits. A budget built without reference to the CCNL will be inaccurate and the contract may need to be redrafted later to comply.

Treat the second half of August as a full business closure. Schedule no critical decisions, contract renewals or onboarding processes during Ferragosto week and the surrounding fortnight. Italian counterparts will resume in early September and major commercial discussions traditionally restart in the second week of September.

If your business sells to Italian VAT-registered customers, validate that your invoicing flow can produce a compliant FatturaPA XML and route it through an SdI intermediary. PDF-by-email invoicing alone is not legally acceptable in the Italian B2B market and can invalidate the customer's right to deduct input VAT.