Employee Benefits in Italy

Italy offers a wide variety of benefits to employees across the country. From vacation and holiday leave to maternity and overtime benefits, learn about employee benefits in Italy for 2020.

Vacations and Holidays

All employees in Italy are liable to receive national holidays. The number of paid days off and paid vacations varies by company policy.

Minimum Wage

There is no set minimum wage limit as laid out by the Italian government. Every year, the wages are fixed via collective bargaining agreements throughout the nation.

Working Hours and Overtime

A full workday in Italy equals 8 hours a day. On average, a workweek consists of 5 days a week, which means a full working week falls at 40 hours.

The legislation restricts overtime to 2 hours per day, and that also must be approved by the company. Employees are not liable to receive compensation for overtime worked on their own accord. Though there is no set pay for overtime work, it must be more than the regular wage rate.

Pension Fund and Social Security

Employers make around 29% to 32% of social security contributions, and the employee makes approximately 10.48% of their salaries. Social security comes in handy during maternity leaves, unemployment, sick leaves, and other funds.

Opting for pension funds is optional, and Quadri and Impiegati employees can opt for pension funds. Here the employee makes a 0.5% contribution that is matched by 1.5% contribution by the employer. The rest is covered through the Mario Negri funds.


Maternity Leaves – Women can get 20 weeks of paid maternity leaves, where they will receive 80% of their full pay. The 20 weeks include 8 weeks leading to delivery and then 12 weeks after.

The mother can choose to take a further unpaid 6 month leave. Single mothers can take up to 10 months of unpaid maternity leaves following the 20 weeks.

In case the mother decides to forgo the maternal leave, she can get her working hours reduced to 6 hours per day.

Paternity Leave – A father can take up to three months of paternity leave if the mother does not take the leave or is self-employed.

Work-Related Injury – Employees can receive paid leaves in case of work-related injuries and may even be liable for extra compensation. In case of an injury, they must report the incident, get a medical check-up, and obtain a medical certificate. They must then submit the document and an application to the National Institute for Insurance Against Accidents at Work to avail of work relate injury leaves.

Termination Notice Periods

Employees notice period and dismissal notice periods are decided via a collective agreement. However, employers generally provide a notice for dismissal on objective causes such as low productivity. Employers must also provide terminated employees with one month’s salary as severance pay.

Although there are several 2020 Italian employee benefits that are statutorily mandated, many companies also offer substantial employee benefits over and above the ones mentioned above.

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