All About Offering Employee Benefits in Italy
Hire the best talent in Italy with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Italy
Italian employees already receive essential benefits through the national social security system, but offering more can set your business apart in a competitive job market. With Justworks, small businesses can seamlessly provide localized benefits without the hassle and expense of establishing a local entity. Let’s break down the mandatory benefits employers must offer in Italy and explore additional perks to attract and retain top talent.
Social Security
Social security is managed by the National Social Security Institute (INPS) and funded through employer and employee contributions. Employers typically contribute around 30% of an employee’s gross salary, while employees contribute about 10%. These contributions cover pensions, unemployment benefits, maternity leave, sick leave, and disability support. Additionally, employers must contribute to INAIL (National Institute for Insurance against Workplace Accidents) to cover workplace injuries.
Time Off
All employees in Italy are entitled to a minimum 20 days of paid vacation per year. They must also take at least two consecutive weeks of their accrued paid leave in each calendar year. Employers are not permitted to pay employees in lieu of paid leave, except in cases of termination.
13th-month and 14th-month Bonuses
In Italy, the 13th-month bonus, known as tredicesima, is an additional monthly salary payment typically given to employees in December. It’s a mandatory benefit for most workers under Italian labor laws and collective bargaining agreements. Designed to help with holiday expenses, the bonus is equivalent to one month’s salary and accrued throughout the year. Employees receive the full amount if they have worked the entire year or a prorated sum if they started midyear. The 14th-month salary ("quattordicesima") is less common but can be stipulated in collective bargaining agreements or individual contracts, particularly in certain sectors. The 14th -month salary is typically paid in June.
Offer Competitive Benefits
A robust employee benefits package can be a powerful recruitment tool. Consider incorporating the following benefits to attract the best talent.
Meal Vouchers (Buoni Pasto)
Many companies provide daily meal vouchers, typically worth €5 to €10, to help cover employees’ lunch expenses. These are tax-advantaged and widely accepted at restaurants and supermarkets.
Private Health Insurance
While Italy has a strong public healthcare system, many employers offer supplementary private health insurance to cover additional services like private hospital stays, specialist visits, and faster medical access.
Company Welfare Programs
Employers often provide flexible benefits packages, including gym memberships, childcare support, or commuter allowances. These perks, sometimes offered through tax-advantaged corporate welfare programs, help improve work-life balance and employee satisfaction.
Ready to Offer Benefits in Italy?
Justworks makes building your global team seamless by helping you access localized benefits to attract top talent in Italy. Simplify international hiring today.
