Payroll services in Italy

Administrating timely, accurate and compliant payroll in Italy requires a deep understanding of local tax, reporting, employment and compensation requirements. With our payroll solutions, you can count on in-country expertise and support to help ensure your workers in Italy are paid correctly, compliantly and on time - every time.

Our local experts provide up-to-date guidance on the specific tax legislation, compensation requirements and benefits expectations for processing payroll in Italy.

We administer payroll in various ways:

Corporate entities in Italy are subject to an income tax of 24% plus a regional production tax of 3.9%. Non-operating entities are subject to a 34.5% corporate tax rate.

Effective since Jan. 1, 2022, Italy’s national personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:

Regions and municipalities collect an additional income tax of up to 3.33% for regions and up to 0.9% for municipalities.

Italian payroll requires that all employment wages, tax and social security contributions are reported in a yearly document called the Certificazione Unica dei Redditi (CUD). By February 28 of each year, employers must provide all employees with two original CUD documents for the previous reporting year.

Each year a new model of the CUD is released by the Ministry of Finance, due to the introduction of new tax provisions.

Employees and employers contribute to the social security system, which funds social programs such as pensions; disability; benefits for sick leave, maternity and parental leave; workers’ compensation; and unemployment benefits. The National Health Service is financed separately through general taxation.

Generally, employers contribute 35% of gross earnings. Employee contribution rates vary by employment category, but the common rate is 10% of gross earnings.

Contribution rates for social taxes include:

Additionally, executives and their employers make contributions to supplementary pension funds and health care funds. These supplementary funds may have their own deadlines for payment of contributions.

Updated: 26.09.2023

In Italy, employment contracts are ruled by collective bargaining agreements, locally known as Contratto Collettivo Nazionale del Lavoro (CCNL). These agreements have a big impact on the structure of payroll in Italy, as they define the general rules of employment and individual employment contracts cannot deviate from these rules.

When processing Italian payroll, you’ll need to consider the following employment regulations:

Hundreds of organizations depend on our global payroll expertise to ensure their payroll processing is accurate and compliant with local tax and employment requirements.

We support payroll in Italy in various ways: through our employer of record solution, as a local payroll provider for your Italian operations, and as part of a managed provider solution for your global organization.

As an employer of record in Italy, we handle payroll for your Italian workers, ensuring accuracy and compliance, while you manage their day-to-day contributions.

As a local provider of payroll in Italy, we can help your local operations:

As a global payroll provider, we offer streamlined processing across countries, currencies, languages and time zones—to help companies gain global visibility to pay data and make smarter workforce decisions.

Whether you need payroll support in Italy through an employer of record, a local provider or as part of a comprehensive global payroll system, contact us to let our experts find the right solution for you.