Understanding Italy's 13th and 14th Salary Payments

Italy's unique compensation system includes additional monthly payments known as the 13th salary (Christmas bonus) and 14th salary (summer bonus). These payments represent a distinctive approach to employee compensation that balances annual earnings across more frequent distributions.

Mandatory Nature of Additional Salary Payments

The 13th salary is legally mandatory for virtually all full-time employees in Italy, including those on fixed-term contracts. Even employees with less than one year of service receive proportional payments. In contrast, the 14th salary depends entirely on collective bargaining agreements (CCNLs) specific to each industry sector.

Industry Variations in Payment Requirements

Different sectors demonstrate significant variation in bonus payment practices. The commercial and service industries typically mandate both payments, while manufacturing sectors may only require the 13th salary. Tourism and hospitality workers commonly receive summer bonuses to support seasonal expenses.

Industry Sector	13th Salary	14th Salary
Commercial Services	Mandatory	Typically Mandatory
Manufacturing	Mandatory	Varies by Sub-sector
Tourism & Hospitality	Mandatory	Common Practice
Construction	Mandatory	Often Replaced by Bonuses

Calculation Methodology and Tax Implications

The standard calculation involves dividing annual compensation by 13 or 14 months. For employees with incomplete service years, proportional calculations apply. These payments are subject to standard income tax (IRPEF) and social security contributions (INPS), typically resulting in net amounts approximately 30% lower than gross figures.

Compliance Considerations for International Employers

Non-compliance with mandatory payment requirements can result in significant penalties, including fines up to €5,000 per employee and potential legal disputes. SailGlobal's expertise ensures proper classification under relevant CCNLs and accurate payment calculations, helping international businesses navigate Italy's complex employment landscape effectively.

Italy's 13th and 14th Salary Guide 2025: Compliance & Calculation