TFR accrues with every month of service and is revalued annually, which makes it a balance-sheet item long before it is ever paid. Why it belongs in the cost model from month one.
- 13th and 14th month salary
- CCNL classification
- How does the EU Blue Card salary threshold work in Italy?
Italy applies a national corporate income tax (IRES) alongside a regional production tax (IRAP), with the latter varying by up to 0.92 percentage points depending on the region — a structural layer most foreign companies do not encounter in comparable EU markets. Incorporation is comparatively fast and flexible: an SRL can in principle be formed with €1 in capital, though going below €10,000 carries mandatory profit-reserve obligations that make the standard threshold the practical default for most operating subsidiaries.
What an employee costs in Italy. Every figure below is published on the Italy country page.
| Italy | |
|---|---|
| Employer social security | ~27–32% of gross salary (INPS), varying by sector, size and collective agreement |
| Minimum wage | No statutory minimum wage — set by sector collective agreements (CCNL) |
| Currency | EUR |
| Official language | Italian |
| Legal forms | SRL · SpA |
What makes it complex in Italy
- 13th and 14th month salary — built into gross remuneration and factored into TFR calculation.
- CCNL classification — sector-specific collective agreement minimums for salary, notice and severance that frequently exceed statutory floors.
How does the EU Blue Card salary threshold work in Italy?
The threshold is indexed to 1.5 times the national average gross salary published by ISTAT, with a reduced threshold of 1.2 times for shortage occupations such as IT, healthcare and engineering. The exact figure is revised periodically; current guidance should always be confirmed before an offer is finalised.
What is TFR and why does it matter for budgeting?
TFR (Trattamento di Fine Rapporto) is a deferred severance payment that accrues for every employee throughout employment, calculated as annual gross salary divided by 13.5, plus an annual revaluation of 1.5% fixed plus 75% of ISTAT inflation. It is owed in full on any termination — resignation, dismissal, or retirement — and should be modelled from the first month of employment, not estimated at year-end.
13th and 14th month salary is one of the points HTLC Network handles for clients operating in Italy, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Italy the scope is: Full-cycle Italian payroll including INPS contributions, TFR accrual and revaluation, and employment contracts under the applicable CCNL.
See Payroll & Workforce Management in Italy for the full scope, or the Italy country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.