Italy flag Italy: Operating a Business in Italy

Work conditions in Italy

The Active Population in Figures

201820192020
Labour Force 26,032,16925,787,15825,080,671

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 65.49%65.71%65.82%
Men activity rate 75.07%75.23%75.14%
Women activity rate 55.97%56.23%56.53%

Source: International Labour Organization, ILOSTAT database

 
For Further Statistics
Ministry of Labour
For Further Information About the Labour Market
National Agency for Investment Development

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
65, with a minimum of 25 years' contribution
Working Contracts
Labour contracts are governed by legal provisions and, to a lesser extent, by collective agreements. Conditions of hiring and dismissal are quite strict.

There are open-ended contracts, fixed term contracts or contracts for specific tasks/occasional services.

Labour Laws
Doing Business: Italy, to obtain a summary of labour regulations that apply to local entreprises

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Cost of Labour

Minimum Wage
There is not a statutory minimum wage. Yet most Italian workers (nearly 80%) are actually covered by a minimum wage agreement, established through sectoral collective bargaining.
Average Wage
Average annual wage: USD 37,769 (source: OECD, 2020 - latest available data).
Social Contributions
Social Security Contributions Paid By Employers: Generally speaking, contributions are subject to variations depending on the professional branch, the risks, the number of employees and their professional qualifications. Employer’s charge is around 30%. Around 33% of the total rate is paid into the National Pension Fund, and the remainder is paid to the unemployment, sickness, maternity, social mobility and other funds (PwC).
Social Security Contributions Paid By Employees: Employees’s charge is around 10% and destinated for disability, old age and surviving spouses. Self-employed individuals are taxed at 25.98%. Additional voluntary and variable contributions are also allowed (PwC).

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Social Partners

Employer Associations
CONFINDUSTRIA - General Confederation of Italian Industries
CONFAPI - Italian Confederation of SMEs
Labour Unions
Unione Italiana del Lavoro (UIL)
Confederazione Generale Italiana del Lavoro (CGIL)
Confederazione Italiana Sindacati dei Lavoratori (CISL)
Unionisation Rate
Between 70 and 79%
Labour Regulation Bodies

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Latest Update: February 2024