In Italy, each industry has a National Collective Labour Agreement (CCLA) that governs the employee working relationship. Employees working through PEO Worldwide will be subject to the Tertiary sector.
Furthermore, employees will also be classed in accordance with one of the below categories. There are seven levels of classification that will determine the terms of employment and statutory benefits that each category of employee is entitled to.
Dirigenti are the highest category of employee, defined in Italy by specific collective agreements. This includes employees who are responsible for running the company or managing an independent part. Dirigenti also include certain employees with very high-level technical, scientific and/or professional qualifications.
A Quadro carries out managerial tasks and reports to a dirigente. He / she has a significant degree of autonomy and is directly responsible for the tasks, projects and staff (if assigned line manager responsibilities).
Funzionari normally are on the upper side of this professional category. All managers in general belong to this professional category: finance managers, operations managers, marketing managers, shop managers, events managers, site managers, etc.
An impiegato/a reports to a quadro (or to a dirigente when employed by SME) and carries out office-related tasks and projects.
Salary Pay Date
Salaries are paid monthly. Many companies will adopt a fixed pay date; however, there is no legal obligation.
In Italy, employers observe a 13/14 month payroll process, as prescribed in a wide variety of Collective Bargaining Agreements.
In accordance with the CBA to which PEO Worldwide abides, the following is applicable:
Social Security System
Italy has an extensive social security system which is divided into three sectors: INPS (Instituto Nazionale Previdenza Sociale),INAIL and SSN (Servizio Sanitario Nazionale – National Health Service).
The Italian social security system is funded by contributions paid by employed workers, employers, independent workers and self-employed workers, as well as through general taxation.
Those legally working in Italy are entitled to the same benefits provided by Italian social security institutions as Italian workers.
Employers are responsible for registering their staff with the INPS.
Payments to the INPS will largely go towards the National Pension Fund (approximately 33% of contributions). The remainder will be used to cover unemployment, maternity and sickness funds.
The National Health Service (SSN) is funded by all residents of Italy through taxes, as well as through co-payment of the cost of medicines and health services through payment of what is referred to as the ‘ticket’ and managed by the individual regions through the Local Health Authorities.
Social Security contributions will vary between 26% – 32% dependent on the work activity and seniority level of the employee.
Leaving Indemnity (TFR)
Part of the employee’s salary should be set aside as a deferred payment which the employee shall receive upon termination. This is irrespective of the cause of termination. Employees can additionally choose for the accrued funds to be allocated to a complementary pension fund.
TopSource Worldwide will provide a detailed breakdown of employer’s costs once the employee classification has been established.