We will also discuss how employment is like in Italy, the perks and benefits a general employee gets, the leave policies and bonuses if any and the taxation slab and percentage in detail.

If you want to know more about payroll management in Italy, read this article about payroll in Italiano.

 Tax Slabs

The minimum wage in Italy is 920 Euros and it can go up to 16400 Euros per month generally for Employees not including Directors, Chief Executive Officers and other higher designations. The gross average salary is upwards of 51000 Euros whereas the average net salary which is the salary in hand after all the deductions is upwards of 33000 Euros.Employees in general pay an income tax in the range of 23% and 43% of their income. The general progressive income tax which is applicable in most of the countries is how it works in Italy as well.

The income tax for different salary slabs (in Euros) is shown below:

  • 1-15000: 23%
  • 15001 – 28000:27%
  • 28001 – 55000:38%
  • 55001 –75000:41%
  • 75001 and above:43%

The employer contribution other than these is between 29.40% and 32.40% and it comprises of 29% to 32% for social security and the other 0.40% for work place injuries whereas it is 10% for the employee. So, if you want to find workers in Italy you would have to consider the factors below and abide by the taxation rules.

By Gender

The sex ratio in Italy as in 2020 was 95 males to 100 females. However, there is a significant difference in the average annual salaries of men and women. Men on an average earn around 52000 Euros annually whereas women make around 42000 Euros annually.

By Education

The average salary varies on the education and the degree a person holds as well. A person with a Bachelor’s degree earns 50000 Euros on an average annually. Not too far ahead is a person with a Master’s degree who earns 53000 Euros on an average. The average salary after a Doctorate degree is 55000 Euros.

By Experience

The average salary is also decided by the experience you have in years and of course your career field. Let’s look at the experience factor here. For a fresher or a person with an experience of less than 1 year, the average annual salary is approximately 26000 Euros.For someone with an experience of 1-2 years, it goes up to 29000 Euros. The experience it takes in years for your salary to double of what you were earning as a freshman is nearly 10 years. For a person with an experience of at least twenty years, the average salary is around 81000 Euros. It of course depends on the career path you choose. But this is what the average looks like.

By Age

Another similar factor affecting salary is the age. For someone who is between 16 and 21 years, the average annual salary is approximately 26500 Euros. It is because most of the students who are in their last year of middle school and the students who are in their high school, already start working part time or full time. For someone between 22 and 26 years of age, the average salary is approximately 29000 Euros because they are mostly graduates by then. For 27 to 32 it is nearly 37000 Euros. For 39 to 44 it is upwards of 65000 Euros. For 57 to 62, that is just around retirement, it is around 1,08,000 Euros.

By Career Field

Now let’s discuss the most important factor that is career field. Management and Business pays the highest average gross salary, which is around 80000 Euros. Trailing behind is Healthcare and Medical sector, where it is nearly 73500 Euros for Doctors and a few nurses. Then comes the Construction and labor sector where the average gross salary is 68500 Euros.Then comes Marketing, Sales and Purchase with 60500 Euros average gross salary after which it is Logistics, Road and Railways with nearly 56500 Euros average salary.