How to compute italy-payroll for Italy, tax year 2026: rates, thresholds, and step-by-step rules with primary-source citations.
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Tax year period
1 January – 31 December (calendar year)TUIR (DPR 917/1986)
INPS contribution ceiling (massimale annuo, post-1996 contributors)
EUR 122,295/yearL. 335/1995
IRPEF rate – Band 1 (EUR 0–28,000)
23%Legge di Bilancio 2026 (L. 199/2025)
IRPEF rate – Band 2 (EUR 28,001–50,000)
33%Legge di Bilancio 2026 (L. 199/2025)
IRPEF rate – Band 3 (EUR 50,001+)
43%Legge di Bilancio 2026 (L. 199/2025)
IRPEF Band 2 prior rate (before 2026 change)
35%Legge di Bilancio 2026 (L. 199/2025)
Maximum annual saving from Band 2 rate reduction (income EUR 28,000–50,000)
EUR 440/yearLegge di Bilancio 2026 (L. 199/2025)
Income threshold above which neutralisation (sterilizzazione) of 33% rate benefit applies
EUR 200,000Art. 1, commi 3–4, L. 199/2025
Tax-free threshold (no-tax area) for employment income
EUR 8,500TUIR (DPR 917/1986)
Employment deduction (detrazione) – income EUR 8,501–15,000 (maximum)
EUR 1,955TUIR (DPR 917/1986)
Employment deduction (detrazione) – income EUR 15,001–50,000 (minimum)
EUR 690TUIR (DPR 917/1986)
Employment deduction (detrazione) – income above EUR 50,000 (fixed)
EUR 690TUIR (DPR 917/1986)
Addizionale regionale IRPEF – rate range
1.23% – 3.33%TUIR (DPR 917/1986); regional laws
Addizionale comunale IRPEF – rate range
0% – 0.9%TUIR (DPR 917/1986); municipal deliberations
Addizionali prior-year withholding instalment period
January – November of the following year (11 monthly instalments)TUIR (DPR 917/1986)
IVS employee contribution rate (industry/commerce – general)
9.19%INPS circular; L. 335/1995
IVS employee rate – Agriculture sector
8.84%INPS circular
INPS massimale annuo (post-1996 contributors, 2026)
EUR 122,295L. 335/1995
INPS minimale annuo (2026)
EUR 18,808L. 335/1995
IVS employer contribution rate (pension – main)
~23.81%INPS circular
Malattia (sickness) employer contribution rate – industry
2.22%INPS circular
Maternità employer contribution rate
0.46%INPS circular
NASpI (unemployment) employer contribution rate
1.61%INPS circular; D.Lgs. 22/2015
CIG ordinaria employer rate (companies ≤ 50 employees, industry)
1.70%INPS circular; L. 148/2015
CIGS employer contribution rate (companies > 50 employees)
0.90%INPS circular; L. 148/2015
Fondo di garanzia TFR employer contribution rate
0.20%L. 297/1982
CUAF (assegni familiari) employer contribution rate
0.68%INPS circular
INAIL (accident insurance) employer rate range
0.4% – 12%+ (risk-based)D.Lgs. 38/2000; INAIL tariff
Additional employer IVS rate on salary above massimale (EUR 122,295)
~1%L. 335/1995
Total employer INPS rate – Industry (> 50 employees)
~31–33%INPS circular
Total employer INPS rate – Industry (≤ 50 employees)
~30–31%INPS circular
Total employer INPS rate – Commerce/services
~28–30%INPS circular
Total employer INPS rate – Dirigenti (managers)
~33–35%INPS circular
Legal maximum weekly working hours
40 hoursArt. 3, D.Lgs. 66/2003
Maximum weekly hours including overtime (average over 4 months)
48 hoursD.Lgs. 66/2003
Annual overtime cap
250 hoursD.Lgs. 66/2003
Overtime surcharge – first 2 hours/day (typical CCNL)
25%CCNL (sector-specific)
Overtime surcharge – additional hours beyond first 2/day (typical CCNL)
30%CCNL (sector-specific)
Overtime surcharge – Saturday/Sunday (typical CCNL)
50%CCNL (sector-specific)
Overtime surcharge – public holidays (typical CCNL)
65%CCNL (sector-specific)
Night work surcharge range (typical CCNL)
15%–30%CCNL (sector-specific); D.Lgs. 66/2003
Tredicesima (13th month) accrual rate
1/12 of annual salary per month workedCCNL (sector-specific); national collective agreements
TFR accrual formula
Annual gross / 13.5 = annual TFR accrualCodice Civile Art. 2120
TFR annual revaluation formula
1.5% + 75% of ISTAT CPI increaseCodice Civile Art. 2120
TFR destination threshold – compulsory transfer to Fondo Tesoreria INPS
≥ 60 employees (2026–2027)L. 296/2006 (Legge Finanziaria 2007); INPS
Statutory minimum annual leave
4 weeks (20 working days on 5-day week)D.Lgs. 66/2003
Minimum consecutive leave that cannot be monetised (except on termination)
2 weeksD.Lgs. 66/2003
National public holidays (paid)
12L. 260/1949; L. 54/1977
INPS sick pay – Days 4–20: rate of average daily wage
50%L. 138/1943; INPS regulation
INPS sick pay – Days 21–180: rate of average daily wage
66.67%L. 138/1943; INPS regulation
INPS sick pay – waiting period (carenza) paid by employer
First 3 daysCCNL (sector-specific)
Maternity leave duration
5 months total (typically 2 months before + 3 months after birth)D.Lgs. 151/2001
Maternity leave INPS pay rate
80% of average daily wageD.Lgs. 151/2001
Parental leave (congedo parentale) – maximum per family
Up to 10 months per family (6 months each parent max)D.Lgs. 151/2001
Parental leave INPS indemnity rate (for 9 months)
30%D.Lgs. 151/2001
Mandatory paternity leave duration
10 working daysD.Lgs. 151/2001; L. 234/2021
Mandatory paternity leave INPS pay rate
100%D.Lgs. 151/2001; L. 234/2021
Mandatory paternity leave – must be taken within
5 months of birthD.Lgs. 151/2001; L. 234/2021
F24 payment deadline (INPS contributions + IRPEF + addizionali)
16th of the following monthD.Lgs. 241/1997
UniEmens (INPS monthly declaration) submission deadline
Last day of the following monthINPS circular
CU (Certificazione Unica) – employment income – telematic submission deadline
16 March of the following yearD.P.R. 322/1998; Agenzia delle Entrate
CU (Certificazione Unica) – self-employment income – deadline
30 April of the following yearD.P.R. 322/1998; Agenzia delle Entrate
Modello 770 (withholding agent annual return) deadline
31 October of the following yearD.P.R. 322/1998
Autoliquidazione INAIL – payment deadline
16 FebruaryD.Lgs. 38/2000; INAIL circular
Autoliquidazione INAIL – declaration deadline
28 FebruaryD.Lgs. 38/2000; INAIL circular
Modello 730 (employee assisted return) submission window
April – SeptemberD.P.R. 322/1998; Agenzia delle Entrate
Modello 730 refund/debit processed via payroll
July – NovemberD.P.R. 322/1998; Agenzia delle Entrate
Modello Redditi PF deadline
30 NovemberD.P.R. 322/1998
Employer payslip retention period
5 yearsL. 4/1953
Approximate minimum monthly pay – CCNL Commercio (Level VII, 14 payments)
~EUR 1,580CCNL Commercio (Confcommercio)
Approximate minimum monthly pay – CCNL Metalmeccanico (Level 1, 13 payments)
~EUR 1,600CCNL Metalmeccanico (CCNL Industria Metalmeccanica)
Approximate minimum monthly pay – CCNL Turismo (Level 7, 14 payments)
~EUR 1,350CCNL Turismo (Federturismo/Confcommercio)
Quick Reference
| Field | Value |
|---|---|
| Country | Italy (Repubblica Italiana) |
| Currency | EUR only |
| Standard pay frequency | Monthly (mensile) -- universal; paid in 13 or 14 instalments per year |
| Tax year | Calendar year (1 January -- 31 December) |
| Income tax withholding | IRPEF ritenuta alla fonte (employer as sostituto d'imposta) |
| Local tax surcharges | Addizionale regionale + Addizionale comunale IRPEF |
| Social insurance authority | INPS (Istituto Nazionale della Previdenza Sociale) |
| Tax authority | Agenzia delle Entrate |
| Key legislation | TUIR (DPR 917/1986); Legge di Bilancio 2026 (L. 199/2025); Codice Civile Art. 2120 (TFR) |
| INPS contribution ceiling (2026) | EUR 122,295/year (per maximale L. 335/1995) |
| Online tools | Agenzia delle Entrate -- modello F24 telematico |
| Validated by | Pending -- requires sign-off by an Italian commercialista |
| Skill version | 1.0 |
IRPEF Tax Brackets (2026 -- Legge di Bilancio 2026)
| Taxable Income (EUR, annual) | Rate |
|---|---|
| 0 -- 28,000 | 23% |
| 28,001 -- 50,000 | 33% |
| 50,001+ | 43% |
Tax-Free Threshold and Detrazioni per Lavoro Dipendente
| Income Range (EUR) | Detrazione (Employment Deduction) |
|---|---|
| Up to 8,500 (no tax area) | IRPEF = 0 (deduction fully offsets tax) |
| 8,501 -- 15,000 | EUR 1,955 (maximum) |
| 15,001 -- 50,000 | Decreasing progressively; minimum EUR 690 |
| Above 50,000 | EUR 690 fixed |
Addizionali IRPEF (Regional and Municipal Surcharges)
| Surcharge | Rate | Notes |
|---|---|---|
| Addizionale regionale | 1.23% -- 3.33% | Varies by region of residence |
| Addizionale comunale | 0% -- 0.9% | Varies by municipality; some have progressive brackets |
INPS Contributions (Employee Share)
| Contribution | Employee Rate | Base | Notes |
|---|---|---|---|
| IVS (Invalidità, Vecchiaia, Superstiti) | 9.19% | Up to INPS ceiling | General rate for industry/commerce employees |
| IVS above ceiling | 9.19% continues but only employer pays excess | Above EUR 122,295/year | For post-1996 first-insured (L. 335/95) |
| Fondo di garanzia TFR | -- | -- | No employee share |
| CIG (Cassa Integrazione Guadagni) | -- | -- | Employer-only for most sectors |
| CIGS (for companies > 15 employees) | -- | -- | Employer-only |
Sector employee rate variants
| Sector | Employee Rate |
|---|---|
| Industry (> 15 employees) | 9.19% |
| Commerce/services | 9.19% |
| Agriculture | 8.84% |
| Dirigenti (managers) | 9.19% |
INPS Ceiling (Massimale, 2026)
| Item | Value |
|---|---|
| Massimale annuo (post-1996 contributors) | EUR 122,295 |
| Minimale annuo | EUR 18,808 |
INPS Contributions (Employer Share)
| Contribution | Approximate Employer Rate | Notes |
|---|---|---|
| IVS (pension) | ~23.81% | Main pension contribution |
| Malattia (sickness) | 2.22% | Industry; 0% for commerce impiegati (INPS covers) |
| Maternità | 0.46% | |
| Disoccupazione (NASpI unemployment) | 1.61% | |
| CIG ordinaria (companies ≤ 50 employees, industry) | 1.70% | Varies by sector |
| CIGS (companies > 50 employees) | 0.90% | Additional |
| Fondo di garanzia TFR | 0.20% | |
| CUAF (assegni familiari) | 0.68% | Family allowances |
| INAIL (accident insurance) | Variable (0.4%--12%+) | Risk-based; separate from INPS |
Typical Total Employer Rates
| Sector | Approximate Total Employer Rate |
|---|---|
| Industry (> 50 employees) | ~31--33% |
| Industry (≤ 50 employees) | ~30--31% |
| Commerce / services | ~28--30% |
| Dirigenti | ~33--35% |
CCNL Examples
| CCNL Examples | Approximate Minimum Monthly (Level 1/Entry) |
|---|---|
| CCNL Commercio (commerce) | ~EUR 1,580 (14 payments, level VII) |
| CCNL Metalmeccanico (metalwork) | ~EUR 1,600 (13 payments, level 1) |
| CCNL Turismo (tourism) | ~EUR 1,350 (14 payments, level 7) |
Working Hours and Overtime
| Rule | Detail |
|---|---|
| Legal weekly maximum | 40 hours (Art. 3, D.Lgs. 66/2003) |
| Maximum including overtime | 48 hours average over 4 months (extendable to 6 or 12 by CCNL) |
| Annual overtime cap | 250 hours (unless CCNL provides otherwise) |
| Overtime surcharges (typical CCNL) | 25% (first 2 hours/day), 30% (additional), 50% (Saturday/Sunday), 65% (public holidays) |
| Night work surcharge | 15%--30% per CCNL |
Tredicesima (13th Month Salary)
| Entitlement | Detail |
|---|---|
| Amount | 1 additional month's salary |
| Accrual | 1/12 of annual salary per month worked |
| Payment | December (before Christmas) |
| Statutory | Yes -- required by law for all employees |
| Subject to IRPEF and INPS | Yes |
Quattordicesima (14th Month Salary)
| Entitlement | Detail |
|---|---|
| Amount | 1 additional month's salary |
| Required | Only where mandated by CCNL (e.g., Commercio, Turismo) |
| Payment | Typically June or July |
TFR (Trattamento di Fine Rapporto)
| Item | Detail |
|---|---|
| What | Deferred compensation accrued annually, paid on termination |
| Accrual formula | Annual gross / 13.5 = annual TFR accrual |
| Revaluation | Accumulated TFR revalued annually: 1.5% + 75% of ISTAT CPI increase |
| Destination | Kept at employer, or transferred to Fondo Tesoreria INPS (≥ 60 employees in 2026--2027), or to supplementary pension fund |
| Tax treatment | Tassazione separata (separate taxation) on payment |
Ferie (Annual Leave)
| Entitlement | Detail |
|---|---|
| Statutory minimum | 4 weeks (20 working days on 5-day week) per D.Lgs. 66/2003 |
| Typical CCNL | 20--26 days depending on seniority |
| Non-substitutable | First 2 weeks must be consecutive; minimum 2 weeks cannot be monetised except on termination |
| Festività | 12 national public holidays (paid) |
Sick Leave (Malattia)
| Entitlement | Detail |
|---|---|
| INPS indennità | Days 4--180: 50% of average daily wage (days 4--20), 66.67% (days 21--180) |
| Employer top-up | Per CCNL (e.g., Commercio: 100% for days 1--3, then 75% through INPS for 180 days) |
| Waiting period | First 3 days (carenza) paid by employer per most CCNLs |
| Medical certificate | Telematic certificate sent by doctor to INPS; employer receives notification |
Maternity Leave (Congedo di Maternità)
| Entitlement | Detail |
|---|---|
| Duration | 5 months total (typically 2 months before + 3 months after birth; flexible 1+4) |
| Pay | 80% of average daily wage from INPS; many CCNLs top up to 100% |
| Parental leave (congedo parentale) | Up to 10 months per family (6 months each parent max); 30% INPS indemnity for 9 months |
Paternity Leave (Congedo di Paternità)
| Entitlement | Detail |
|---|---|
| Mandatory | 10 working days (paid at 100% by INPS) |
| Timing | Within 5 months of birth |
Mandatory Payslip Fields
| Field | Required |
|---|---|
| Employer: name, address, codice fiscale, INPS position number | Yes |
| Employee: name, codice fiscale, qualifica, livello, CCNL applied | Yes |
| Pay period and payment date | Yes |
| Normal hours and overtime hours worked | Yes |
| Paga base + contingenza + EDR + other CCNL elements | Yes |
| Gross pay (retribuzione lorda) | Yes |
| INPS employee contributions (detail) | Yes |
| IRPEF withheld | Yes |
| Addizionali regionali and comunali withheld | Yes |
| Detrazioni per lavoro dipendente applied | Yes |
| TFR accrual for the period | Yes (or annual statement) |
| Net pay (netto in busta) | Yes |
| Ferie maturate, godute, residue (leave accrued/used/remaining) | Yes |
| ROL/Permessi (paid leave hours) accrued/used/remaining | Yes |
Monthly filing obligations
| Obligation | Deadline | Method |
|---|---|---|
| F24 payment (INPS contributions + IRPEF + addizionali) | 16th of the following month | Telematic F24 via Agenzia delle Entrate |
| UniEmens (INPS monthly declaration) | Last day of the following month | Telematic via INPS |
Annual filing obligations
| Obligation | Deadline | Notes |
|---|---|---|
| CU (Certificazione Unica) -- employment income | 16 March of following year | Telematic to Agenzia delle Entrate; copy to employee |
| CU -- self-employment income | 30 April of following year | |
| Modello 770 (withholding agent annual return) | 31 October of following year | Reconciliation of all withholdings |
| Autoliquidazione INAIL | 16 February (payment) + 28 February (declaration) | Annual accident insurance settlement |
Employee Obligations
| Item | Detail |
|---|---|
| Modello 730 (assisted tax return) | Submission windows: April -- September; employer/CAF processes refund/debit in July--November payroll |
| Modello Redditi PF | Alternative to 730; deadline 30 November |
Typical Bank Statement Descriptions (Salary Credits)
| Pattern | Classification |
|---|---|
| STIPENDIO, EMOLUMENTI, BUSTA PAGA | Net salary payment |
| TREDICESIMA, 13A MENSILITA | 13th month salary |
| QUATTORDICESIMA, 14A MENSILITA | 14th month salary (if applicable) |
| TFR, LIQUIDAZIONE | TFR payment on termination |
| INDENNITA MALATTIA INPS | Sickness indemnity (from INPS, may transit through employer) |
| INDENNITA MATERNITA | Maternity indemnity |
| RIMBORSO 730 | Modello 730 tax refund processed through payroll |
Typical Employer Debit Patterns
| Pattern | Classification |
|---|---|
| F24 INPS, CONTRIBUTI INPS | INPS contribution payment |
| F24 IRPEF, RITENUTE | IRPEF + addizionali payment |
| INAIL PREMIO | Accident insurance premium |
| FONDO TESORERIA INPS | TFR transfer to INPS fund |
| FONDO PENSIONE [NAME] | Supplementary pension fund contribution |
Interaction with Other Skills
| Scenario | Skill to Use |
|---|---|
| Employee payroll (IRPEF + INPS) | This skill (italy-payroll.md) |
| Self-employed income tax | italy-income-tax.md |
| Italian VAT (IVA) | italy-vat-return.md |
| Bookkeeping | italy-bookkeeping.md |
| E-invoicing (FatturaPA / SDI) | italy-einvoice.md |
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