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 currently a national or regional minimum wage; there are several national CBAs related to the different sectors of the business; every national CBA provides a minimum salary as mandatory in order to guarantee the workers a decent lifestyle.
Globalization Partners applies to their professionals while they are assigned to a mission at a company using the national CBA Commercio Distribuzione e Servizi that provides, in addition to the ordinary monthly salaries paid every month, the payment of two additional monthly salaries, for a total of 14 monthly salaries. The additional monthly salaries (so-called “thirteenth monthly salary” and “fourteenth monthly salary”) are paid in December and June of every year.
Guaranteed Benefits in Italy
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 25 days of vacation plus 32 hours of paid leave a year. 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 Benefits 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.
Choose Globalization Partners Today
Globalization Partners will help your business succeed in Italy with compensation outsourcing. Contact us today to learn more about our services.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.