Payroll guide

The Italian payroll calendar and filings

What happens each month, and once a year, when you employ someone in Italy.

Italy payroll at a glance

CurrencyEuro (EUR)
Tax year1 January – 31 December
Pay frequencyMonthly, plus 13th (and sometimes 14th) month
Employer cost on top of gross payAbout 35–40% including severance accrual
Taxes and contributions paidMonthly, by the 16th of the following month (F24)
Time zoneCET (UTC+1), CEST in summer

How Italian payroll works

Payroll runs monthly. Each month the employer calculates gross pay under the employee's collective agreement, withholds the employee's taxes and contributions, adds the employer's own contributions, pays the employee and pays the authorities.

Before the first payslip, the employer must be set up with three bodies:

  • INPS, the national social security institute: pensions, unemployment, sickness and maternity.
  • INAIL, the workplace injury insurer.
  • Agenzia delle Entrate, the tax agency, for income tax withholding.

The hire itself is reported to the labor authorities electronically the day before work starts.

With our Employer of Record service all of these registrations are already in place: we are the employer, so your hire can start without you registering anything in Italy.

The monthly payroll calendar

Each pay period is one calendar month. A typical month looks like this:

  1. Mid-monthCut-off for the month's variables: overtime, absences, bonuses, new hires and leavers.
  2. Third weekPayroll is calculated and the payslips are checked.
  3. End of monthNet pay is transferred; some employers pay in the first days of the next month, as the contract or CCNL allows. Payslips go out, usually digitally.
  4. 16th of next monthWithheld taxes, INPS and INAIL contributions are paid with the F24, and the UniEmens report is filed.

Your invoice follows the same calendar, so the cost you see each month matches that month's payroll.

How we run each payroll month

  1. Collect changesHours, leave, overtime, new hires and leavers, salary and benefit changes, approved by you.
  2. CalculateGross pay, contributions, taxes and net pay under the CCNL and the law.
  3. CheckComparison with the previous month; anomalies explained before anything is paid.
  4. PayNet salaries by bank transfer, payslips to employees.
  5. FileF24, UniEmens and the LUL update.
  6. ReportSummary and invoice to your finance team.

Monthly and yearly filings

FilingWhat it isWhen
Payslip (cedolino)Monthly statement of gross pay, deductions and net payEvery month
F24Single payment form for withheld taxes, social security and surchargesBy the 16th of the following month
LUL (Libro Unico del Lavoro)The official payroll and attendance registerUpdated every month
UniEmensMonthly report of pay and contributions to INPSEvery month
Certificazione Unica (CU)Annual certificate of income, tax and contributions; the employee uses it for their tax returnBy 16 March
Modello 770Annual withholding agent returnBy 31 October
INAIL self-assessmentAnnual premium calculationBy 16 February

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