Italy

Overview of Italy

Italy has the most memorable shape of all countries in Europe – the boot. It has a population of 60.366 million. With the Italian economy being one of the broadest in the world, Italy has the third largest economy of the EU and the 8^th largest in the world. Italy is the fifth most visited place in the world by tourists.

Punctuality is not a priority in Italy so be prepared to wait for an appointment to arrive. First impressions are important as men and women have an excellent fashion sense so make sure to dress sharp when meeting up with someone. Italians also do a lot of business based on relationships so ensure to build up one when interested in doing business.

Currency of Italy

• Euro

Health Insurance and the Social Security system of Italy

The Italian healthcare system is run by the National Institute for Social Security (Istituto Nazionale della Previdenza Sociale/INPS). Every employee is obliged to pay social security contributions. The employer pays about two thirds of the contribution while the employee pays the other third. The contribution on the part of the employee is about 10% of his gross salary while the employee pays about 35% of the employee’s gross salary. A income ceiling exists for certain types of social security income such as old age pension, disability and survivor’s benefits.

The social security in Italy covers the following:

• sickness

• maternity

• accidents at work and occupational diseases

• benefits for unemployment

• invalidity and survivor’s pension

Employer cost of Italy

The cost for an employer to hire someone in Italy is a plus of 30.00% to the gross salary.

Salary and bonuses of Italy

Regular employees are paid once a month.

There are no laws regarding bonuses in Italy but many companies pay a 13^th month salary, usually in December.

Public Holidays in Italy

In Italy there are 12 national public holidays.

• January 1^st – New Years Day
• January 6^th – Epiphany
• Easter Sunday
• Easter Monday
• April 25^th – Liberation Day
• May 1^st – International Workers Day
• June 2^nd – Republic Day
• Augsut 15^th – Assumption Day
• November 1^st – All Saints Day
• November 8^th – Immaculate Conception
• December 25^th – Christmas
• December 26^th – Saint Stephan’s day

Working Hours in Italy

Regular working hours are from 9:00am till 1:00pm and from 2:30pm till 6:00pm.

The maximum hours allowed during one work week are 40 hours. With overtime, a maximum of 48 hours per week and 250 hours a year are allowed. After 6 hours of working, one is entitled to a break. Overtime must be paid with an increase of a minimum of 10% of the base salary, but there are no specific rates.

Vacation in Italy

In Italy the average is 25 vacation days per year. It is not allowed to be less than 4 weeks.

Sick Leave in Italy

The first 3 days of an illness are seen as a “waiting period”. If one is still sick after the 4^th day, one has to see the doctor who will sill out a sick note and send it electronically to the employer and the INPS. Between the 4^th and the 20^th day of the illness, one receives 50% of one’s regular wage as statutory sick pay. Between the 20^th and the 180^th day, once receives 66% of his wage. The maximum amount if sick days you are entitled to in one year is 180.

Termination/Severance in Italy

When dismissing an employee in Italy, this must occur via a written notice. An agreement can be reached between both parties ending the employment relationship through a settlement. In this case, no notice period needs to be adhered to. If no settlement is reached, the usual notice period is as per employment contract is adhered to.