Italian Net Salary Calculator (Stipendio Netto)
Calculate your take-home pay after taxes and social security contributions in Italy for 2025.
Notes:
- This calculator provides estimates only and should not be used for tax filing purposes.
- The calculation uses projected 2025 Italian tax brackets and deductions.
- Regional and municipal tax rates may vary; average rates are used for estimation.
- Additional deductions like health insurance or specific tax credits are not included.
- The 13th month salary (Tredicesima) is included in calculations for employees.
How We Calculate Your Net Salary in Italy
IRPEF (Income Tax)
IRPEF (Imposta sul Reddito delle Persone Fisiche) is Italy's progressive income tax. For 2025, the tax brackets are projected to be:
| Income Bracket | Tax Rate |
|---|---|
| €0 - €15,000 | 23% |
| €15,001 - €28,000 | 25% |
| €28,001 - €50,000 | 35% |
| Over €50,000 | 43% |
The IRPEF calculation is applied to your taxable income after deducting social security contributions and applicable tax deductions. The 2025 Italian tax reform aims to simplify the system while maintaining progressivity.
Social Security Contributions (INPS)
Social security contributions in Italy are mandatory and vary based on employment type:
- Employees (Dipendenti): Approximately 9-10% of gross salary, with employers contributing an additional 30-32%
- Self-employed (Autonomi): Approximately 24-34% depending on profession and income level
These contributions fund Italy's pension system, healthcare, and other social benefits. The taxable base for INPS contributions has a ceiling that is updated annually.
Regional and Municipal Taxes
In addition to IRPEF, Italians pay regional and municipal surcharges:
- Regional tax (Addizionale Regionale): Ranges from 1.23% to 3.33% depending on the region and income
- Municipal tax (Addizionale Comunale): Usually between 0% and 0.9%, varies by municipality
These local taxes contribute to funding regional and municipal services. Rates can change annually based on local government decisions.
13th Month Salary (Tredicesima)
Most Italian employees receive a 13th month salary, known as "Tredicesima," typically paid in December. Some contracts may also include a 14th month salary ("Quattordicesima").
The 13th month payment is equivalent to one month's salary and is subject to the same tax rates as regular salary. Our calculator includes this in the annual gross-to-net computation.
Tax Deductions and Credits
Italy offers various tax deductions and credits:
- Employment income deductions: Tax relief for employees based on income level
- Family deductions: Tax credits for dependent family members
- Healthcare expenses: 19% tax credit for medical expenses exceeding €129.11
- Education expenses: 19% tax credit for education costs
- Home renovation: Tax credits for home improvements and energy efficiency upgrades
The 2025 tax system continues to provide these incentives to support families and promote economic activity.
Minimum Wage in Italy (2025)
Italy has historically not had a statutory national minimum wage, instead relying on collective bargaining agreements (CBAs) to set minimum pay rates across different sectors. However, for 2025, Italy is implementing a new minimum wage law establishing a floor of €9.50 per hour or approximately €1,600 per month for full-time workers.
This represents a significant change in Italian labor policy, following pressure from the European Union to establish adequate minimum wages across member states. The new minimum wage will apply to all workers, including those not covered by collective agreements.
Sectors with strong collective bargaining traditions, such as manufacturing, typically have higher minimum wages than sectors with less union representation. The new statutory minimum wage aims to reduce wage inequality and in-work poverty, particularly benefiting workers in the service sector and southern regions of Italy.
Salary Landscape in Italy (2025)
The Italian salary landscape is characterized by significant regional and sectoral differences:
Regional Variations
Northern regions like Lombardy, Trentino-Alto Adige, and Emilia-Romagna offer significantly higher average salaries compared to southern regions like Calabria, Sicily, and Puglia. The north-south divide remains pronounced, with Milan-based workers earning up to 40% more than those in southern cities for comparable positions.
Sector Differences
Finance, technology, pharmaceuticals, and specialized manufacturing offer the highest salaries, while tourism, hospitality, and retail tend to offer lower compensation. Public sector employment provides good stability and benefits but often lower salaries than comparable private sector positions.
For 2025, median annual salaries in Italy are projected to be:
- National median: €30,000
- Northern Italy: €35,000 - €42,000
- Central Italy: €30,000 - €35,000
- Southern Italy: €25,000 - €30,000
The wage growth for 2025 is expected to be approximately 2.5-3%, slightly above inflation, representing modest real wage growth after several years of stagnation.
Tips to Optimize Your Net Salary in Italy
- Utilize tax deductions: Take advantage of available tax deductions for healthcare, education, and home renovations.
- Consider salary packaging: Some employers offer meal vouchers (buoni pasto) and other benefits that have favorable tax treatment.
- Pension contributions: Voluntary contributions to complementary pension funds can reduce your taxable income.
- Family status: Ensure you're claiming all family-related tax credits if you have dependents.
- Regional considerations: Be aware that moving between regions can affect your regional tax rate.
- Home office deductions: If you work from home, you may be eligible for deductions on utilities and equipment.
Frequently Asked Questions about Italian Salaries
What will be the minimum wage in Italy in 2025?
In 2025, Italy will have a new statutory minimum wage of €9.50 per hour, or approximately €1,600 per month for full-time workers. This is a significant change, as Italy has traditionally relied on collective bargaining agreements rather than a statutory minimum wage. The change follows EU directives to establish adequate minimum wages across member states.
How is the 13th month salary (Tredicesima) calculated?
The 13th month salary (Tredicesima) is equal to one month's gross salary and is typically paid in December. It's calculated based on your monthly salary and the number of months you've worked during the year. If you've worked the entire year, you receive a full month's salary. If you've worked only part of the year, you receive a proportional amount.
What is the average salary in Italy?
The average annual salary in Italy for 2025 is projected to be around €30,000, with significant variations by region, industry, and qualifications. Northern regions have higher averages (€35,000-€42,000) compared to southern regions (€25,000-€30,000). Specialized professionals in finance, technology, and healthcare can earn significantly more.
How much tax do I pay on my Italian salary?
The tax burden on Italian salaries includes IRPEF (income tax with rates from 23% to 43%), social security contributions (9-10% for employees), and regional/municipal surcharges (1-3.5% combined). For an average salary of €30,000, the total tax burden is typically around 30-35% of gross income, resulting in a net salary of approximately €19,500-€21,000.
What benefits are Italian employers required to provide?
Italian employers must provide social security contributions, paid annual leave (minimum 4 weeks), paid sick leave, maternity/paternity leave, severance pay (TFR - Trattamento di Fine Rapporto), and health and safety insurance. Many employers also offer additional benefits such as meal vouchers, health insurance, and performance bonuses.
How does Italy's cost of living compare to salaries?
Italy's cost of living varies significantly by region. Major cities like Milan, Rome, and Florence have high housing costs that can consume 30-50% of an average salary. The cost of living in southern regions is lower, but so are wages. For a comfortable lifestyle in major northern cities, a salary of at least €35,000-€40,000 is typically needed for a single person.
What is TFR (Trattamento di Fine Rapporto)?
TFR is a severance payment that Italian employers must set aside for employees, equal to approximately 7.4% of annual salary. This sum accumulates year by year and is paid when employment ends. Employees can also choose to direct their TFR to a complementary pension fund instead of keeping it with the employer.
How do salaries in Italy compare to other EU countries?
Italian salaries are generally lower than those in northern European countries like Germany, France, the Netherlands, and Scandinavian countries, but higher than eastern European countries. The average Italian salary is approximately 15-20% below the EU average, while the cost of living (especially in northern Italy) is closer to the EU average.