What is a Busta Paga (Payslip) in Italy?

What is a busta paga?

The busta paga, or prospetto paga, is the payslip an employer in Italy must give each employee every time it pays their salary. Law 4 of 1953 makes it compulsory for all employees except dirigenti (senior executives), and it must be handed over at the same time as the pay.

What it must show

The payslip must show the employee’s name and professional classification, the pay period, family allowances and every other element of pay, and each deduction separately. It must also identify the national collective agreement (CCNL) applied, by its code in the national archive of collective agreements, and carry the employer’s signature, initials or stamp. The entries must match the employer’s payroll records in the Libro Unico del Lavoro (LUL), and many employers meet the obligation by giving the employee a copy of their LUL entries.

A typical Italian payslip

Beyond the legal minimum, a busta paga usually shows gross pay, the INPS contributions deducted from the employee, taxable income for IRPEF, the income tax withheld after tax credits, the regional and municipal surcharges, the TFR severance pay accrued, and leave and permit balances, ending with net pay.

Paying the salary

Since 1 July 2018, salaries and advances cannot be paid in cash. They must go through a bank or post office, by bank transfer, electronic payment, cash at the counter of a bank or post office where the employer holds an account for the purpose, or cheque. The employee’s signature on the payslip does not prove payment, and paying outside these methods carries a fine of €1,000 to €5,000. Domestic workers and public administrations are excluded.

Penalties

Failing to give a payslip, giving it late, or leaving out or misstating entries is fined at €150 to €900. The range rises to €600 to €3,600 if more than five workers or more than six months are involved, and to €1,200 to €7,200 above ten workers or twelve months. Where the employer gives a copy of the LUL entries instead, the LUL penalties apply.

The busta paga when TopSource runs your payroll

When TopSource runs your payroll in Italy, we issue a compliant busta paga for every pay period from the LUL, with the right CCNL code, and pay salaries by traceable bank transfer.

Frequently asked questions

Is a payslip mandatory in Italy?

Yes. Employers must give every employee other than senior executives a payslip each time they pay their salary, under Law 4 of 1953.

Can an Italian employer pay salaries in cash?

No. Since 1 July 2018, pay must go through a bank or post office, for example by bank transfer, and breaking the rule carries a fine of €1,000 to €5,000.

What is the penalty for not issuing a busta paga?

€150 to €900, rising to €600 to €3,600 or €1,200 to €7,200 depending on how many workers and how many months are involved.

Busta Paga (Italy)