Payroll guide

The Italian payroll month

If you run a monthly payroll at home, the Italian rhythm will feel familiar. What differs is the number of authorities and forms.

Key facts

CurrencyEuro (EUR)
Tax year1 January – 31 December
Pay frequencyMonthly, plus the 13th (and sometimes 14th) month, unless paid pro rata
Employer cost on top of gross payAbout 35–40% including the severance accrual
Tax and contributions paidMonthly, by the 16th of the following month (F24)
Time zoneCET (UTC+1), CEST in summer: same as Stockholm, Oslo and Copenhagen

Three authorities, not one

Each month the employer calculates gross pay under the CCNL, withholds the employee's tax and contributions, adds its own contributions, pays the employee and pays the authorities. Before the first payslip, the employer is registered with:

  • INPS, the social security institute: pensions, unemployment, sickness and maternity.
  • INAIL, the workplace injury insurer.
  • Agenzia delle Entrate, the tax agency, which receives withheld income tax.

The hire is reported electronically to the labour authorities the day before work starts.

With our Employer of Record service all registrations are already in place. We are the employer, so you register nothing in Italy.

A typical month

  1. Mid-monthCut-off for variables: overtime, absences, bonuses, joiners and leavers.
  2. Third weekPayroll calculated, payslips checked.
  3. End of monthNet pay transferred (some employers pay early in the next month, as the contract or CCNL allows). Payslips sent, usually digitally.
  4. 16th of next monthWithheld tax, INPS and INAIL contributions paid with the F24; UniEmens report filed.

Your invoice follows the same calendar, so the month's cost matches the month's payroll.

What we do each month

  1. CollectHours, leave, overtime, joiners and leavers, pay and benefit changes, approved by you.
  2. CalculateGross, contributions, tax and net under the CCNL and the law.
  3. CheckAgainst the previous month; differences explained before anything is paid.
  4. PayNet pay transferred, payslips issued.
  5. FileF24, UniEmens and the LUL update.
  6. ReportPayroll summary and invoice sent to your finance team.

Monthly and annual filings

FilingWhat it isWhen
Payslip (cedolino)Gross pay, deductions and net pay for the monthMonthly
F24Single payment form for withheld tax, social security and surchargesBy the 16th of the following month
LUL (Libro Unico del Lavoro)Official payroll and attendance registerUpdated monthly
UniEmensMonthly pay and contribution report to INPSMonthly
Certificazione Unica (CU)Annual statement of income, tax and contributions for the employee's returnBy 16 March
Modello 770Annual withholding agent returnBy 31 October
INAIL self-assessmentAnnual premium calculationBy 16 February

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