RAL vs månadslön: how Italian candidates talk about salary

In Sweden, salary talk is usually monthly. Italians speak almost exclusively in RAL: retribuzione annua lorda, gross annual pay.

If your hiring manager and your Italian candidate use different units, the negotiation goes wrong before it starts.

What RAL includes  

RAL is the total gross pay agreed for a year of work. It includes:

• the twelve monthly salaries;
• the 13th month, which every CCNL provides;
• the 14th month, where the CCNL provides it (for example Commerce and services);
• fixed allowances that are part of regular pay.

It does not include:

• variable pay, commissions and bonuses (unless guaranteed);
• meal vouchers and other benefits;
• employer contributions, INAIL and the TFR, which are employer costs on top.

From RAL to a monthly payslip  

Divide RAL by the number of instalments in the CCNL, 13 or 14, not by 12. If the 13th and 14th are spread over the year, as in our standard set-up, the monthly gross is RAL divided by 12. Same annual pay, different monthly line.

When a candidate says “my current RAL is X”, ask how many instalments. When you make an offer, write both the RAL and the instalments.

From RAL to net  

Italian candidates compare offers on net monthly pay. Between RAL and net are the employee’s social security contribution (9.19%, plus one point above €56,224 a year), IRPEF income tax at 23%, 33% and 43% by band, employment tax credits, and the regional and municipal surcharges of the city where they live.

The net pay calculator gives an estimate for Milan, Rome, Turin, Bologna and Naples. Show the candidate the number; it builds trust.

From RAL to your cost  

For your budget, RAL is the starting point, not the total. Add employer contributions of roughly 30%, INAIL, the TFR at 6.91% and any CCNL fund contributions. Then our €250 a month. The cost calculator does this for two example CCNLs.

Comparing with a Nordic salary  

Do not convert a Swedish monthly salary at the exchange rate and multiply by twelve. Compare on two levels:

1. Market level. What does this role earn in the Italian city you are hiring in? Italian salaries are generally lower than Nordic ones, and the living costs differ too.
2. Total cost. What does the role cost you in Italy compared with at home, all employer items included?

A fair Italian offer is set against the Italian market, not as a discount on a Stockholm salary.

Negotiation habits  

• Italian candidates may expect some negotiation; the first number is not always the last.
• They value stability and clarity: a permanent contract, a named CCNL and level, and written benefits.
• They notice details: meal vouchers, the 14th month, remote-work terms, a laptop and phone.
• Be precise about variable pay. A percentage bonus without a written plan is worth little to them.

The offer letter  

State clearly:

• RAL and number of instalments;
• CCNL and level;
• variable pay and the plan that governs it;
• benefits;
• probation and notice;
• place of work and remote arrangement.

With an Employer of Record (EOR), we turn this into the Italian contract, so what the candidate signed matches what you promised.

Questions we hear from Nordic companies  

Should we publish salary ranges in Italian job ads? It helps. Candidates respond better to ads with a RAL range, and it filters out mismatched expectations early. State whether the range is RAL and how many instalments.

Is a raise also stated as RAL? Yes. Italians speak about raises in RAL too. Put any change into a written amendment, and check whether a new level under the CCNL applies.

How do we compare two candidates in different cities? Same RAL, different net: local surcharges differ by city. Compare offers on RAL for fairness inside the team, and show each candidate the net for their own city so nobody is surprised by the first payslip.

In short  

Talk RAL with Italian candidates, always with the number of instalments. Show net monthly pay for their city, and budget on full employer cost. Do not convert a Nordic monthly salary into an Italian offer; price it against the Italian market.

More on offers in How to make a job offer in Italy that closes . For the components behind RAL, see From RAL to net pay .