Italy Compensation & Benefits
Compensation and benefits are two of the most critical parts of any contract or offer letter negotiation. In Italy, you’ll need to pay even closer attention to compensation and benefits laws to make sure you meet the statutory minimums as well as any additional benefits outlined in a collective bargaining agreement (CBA). Instead of figuring it out alone, Globalization Partners is here to help your company succeed.
Italy Compensation Laws
Italy does not have a national or regional minimum wage, but a CBA could dictate one. Employees are entitled to a salary commensurate with the quality and quantity of work that can guarantee a decent lifestyle. Courts will often consider a national CBA’s minimum wage to be the law even if your company does not apply it.
Although Italy compensation laws do not require a 13th-month or annual bonus, this bonus is common in the majority of CBAs. Most employers offer it to employees just before Christmas, and depending of the CBAs some companies are obliged by law giving employees a 14th month of pay during the summer.
Every employee in Italy needs to receive certain guaranteed benefits. For example, taxes from both employers and employees fund Italy’s national health insurance, which the National Health Service (SSN) manages. Every employee gets a health card that entitles them to free or low-cost treatment.
Employees also get certain days of vacation based on their CBA. According to the CBA that Globalization Partners operates under, employees should receive 26 days of vacation a year. These vacation days are in addition to the 11 public holidays granted to employees each year. Female workers also receive two months of maternity leave before giving birth and three months after the expected date of childbirth.
Italy Benefit Management
Making sure your employees in Italy receive both guaranteed benefits and any supplemental benefits is an essential part of benefits management. Guaranteed benefits are either set by the national standard or dictated by a CBA. Supplemental benefits encompass anything that is not required but is common in Italy and expected from workers.
Some traditional supplemental benefits are:
- Private health insurance
- Company car
- Mobile phone
- Meal voucher
- Additional training
Instead of dispersing benefits yourself, you can opt for Italy benefit outsourcing services from Globalization Partners. We can handle both compensation and benefits for your employees while following every Italy compensation law. We understand what it takes to stay compliant, and we take on that risk for you as the Employer of Record.
Benefits and Compensation Restrictions
You’ll also need to follow several restrictions on benefits and compensation. For example, CBAs regulate everything from rest breaks to the appropriate overtime pay. Before you stipulate these terms in an employment contract, it’s best to cross-reference any relevant CBAs to determine the minimum level of compensation and benefits required.
Why Work With Globalization Partners?
Globalization Partners will help your business succeed in Italy with compensation outsourcing. Contact us today to learn more about our services.