Italy: Employee Benefits & Compensation

The Italian Tax Authority has issued operational instructions clarifying the application of tax relief measures introduced by the 2026 Budget Law, addressing both salary increases from contract renewals and special work allowances. These guidelines detail which income components qualify for preferential tax treatment and establish specific conditions for employees to benefit from reduced taxation rates on certain employment-related payments.

Italy has completed the transposition of EU Directive 2023/970, introducing comprehensive pay transparency rules that will fundamentally reshape recruitment processes, remuneration policies, and internal information flows.

Il Decreto Milleproroghe convertito in legge estende i termini per importanti incentivi all'assunzione, modificando le scadenze e le percentuali di esonero contributivo per il Bonus Giovani Under 35, il Bonus Donne e il Bonus Over 34 ZES unica.

The Fair Wages Decree-Law No. 62 of April 20, 2026 introduced several changes regarding “fair wages.” The government’s goal is to ensure that employees receive economic compensation which is appropriate...

With the publication in the Official Gazette on June 1, 2026 of Legislative Decree No. 96 of 7 May 2026, Italy has become one of the first EU member states to formally implement the EU Pay Transparency Directive (2023/970/EU)...

Italy has introduced a groundbreaking employment law allowing workers to take up to three days of paid leave annually to care for sick pets, provided the animals are microchipped and have proper veterinary documentation.

Labour and Employment Comparative Guide for the jurisdiction of Italy, check out our comparative guides section to compare across multiple countries

In Italy, as in every other country in the world without exception, there is a gender pay gap. Access to the labour market is the starting point, but during employment, women face all kinds of barriers to progress.

Notwithstanding the ‘love' cited by Raymond Carver in his masterpiece, one of the main reasons why people work is the pay.