How Payroll Frequency in Italy Works: the 13th and 14th Salary Payments

When it comes to payroll frequency, Italy has distinct practices that both employers and employees need to be familiar with. These regulations ensure transparency and consistency in how employees are compensated for their work.

Monthly Salary Payments

In Italy, the law mandates that employee salaries must be explicitly stated in a payslip or salary statement. Salaries are typically paid on a monthly basis, which is the standard practice across various industries.

For those working on a piece-rate basis, compensation is calculated based on the amount of work completed, but it must still be documented and communicated through a payslip.

13th-Month Payment

A unique aspect of the Italian payroll system is the annual 13th-month payment, known as "tredicesima mensilità." This bonus is traditionally issued during the Christmas holidays and amounts to an additional month's salary. It serves as an end-of-year bonus, helping employees manage the extra expenses that often come during the holiday season.

14th-Month Payment

In some cases, employees may also receive a 14th-month payment, known as "quattordicesima mensilità." This additional bonus is usually stipulated in collective agreements or individual contracts and is typically paid out in July. The 14th-month payment is less common than the 13th but is still a significant aspect of compensation in certain sectors.

Implications for Employers

• Employers need to understand and adhere to payroll regulations to ensure employee satisfaction and to avoid legal complications.

• Employers need to be aware of the specific terms outlined in collective agreements or individual contracts that include a 13th-month and 14th-month payment.