THELABOUR MARKET

IN ITALY

EconomyEconomy

Italy has a capitalistic economy, which remains divided in a developed industrial North, dominated by private companies, and a less-developed, agriculture South

In 2006 Italy was ranked as the seventh largest economy in the world

One of the world’s largest exporter of manufactered goods

Italy’s major exports are motor vehicles (FIAT,APRILIA, DUCATI), food industry (BARILLA, MARTINI, CAMPARI) and fashion industry(ARMANI, VALENTINI, VERSACE, PRADA, BENETTON, TOD’S, NEROGIARDINI, PIERO GUIDI)

NORTH 6,1%NORTH 6,1%

CENTER 8,1%CENTER 8,1%

SOUTH 13,2%SOUTH 13,2%

ITALIA LABOR MARKETITALIA LABOR MARKET

ITALY 8,7%

Youth unemployment rate 15 -24 = 30%

Foreigners unemployment rate 11%

EUROSTAT

EMPLOYEES WITH FIXED-TERM CONTRACTS IN RELATION TO ALL EMPLOYEES 2008 (in%)

TOTAL

UE 27 14,0

ITALY 13,3

GERMANY 14,7

SPAIN 29,3

FRANCE 14,2

UNITED KINGDOM 5,4

Labour market in EuropeLabour market in Europe

EMPLOYMENT RATE 2008 (in %)

TOTAL

UE 27 65,9

ITALY 58,7

GERMANY 70,7

SPAIN 64,3

FRANCE 64,9

UNITED KINGDOM 71,5

WORKING CONDITIONSWORKING CONDITIONS CONTRACTCONTRACT

Minimum age 16 years (Apprenticeship contract)Form: Written Duration: temporary (more often) / permanentA lot of atipical contracts

Working hours: 8h/day - 40h/weekly (max 48h/weekly) Trial Period: depend to sector Annual leave: 4 weeks / yearMaternity 2 + 3 + 6 monthsProtection against unlawful dismissal

WORKING CONDITIONSWORKING CONDITIONSNO minimum wage: for each

sector wages are established by collective agreement

Monthly payment: 13 or 14 annual payments (relative to sector)

Pay slip: written (Busta Pay) The employer deducts the

monthly salary for social security contributions and taxes

Most companies give workers the "meal ticket" (average nominal value € 7.00 per each working day))

WORKING CONDITIONSWORKING CONDITIONSGROSS ANNUAL SALARY IN 2009

fixed by collective agreements (Full time)

Source: ISTAT

Sector workers Employees

Agriculture 15.830 21.909Industry 21.099 25.190Construction 21.795 28.070Trade 19.819 22.562Hotels & Restaurants 18.889 21.511Transport Communication 23.097 26.888Services 19.825 25.088Private Health Centers 19.001 24.630

SOCIAL SECURITYSOCIAL SECURITYTHE SYSTEM COVERSEMPLOYEES Illness, accidents, maternity, unemployment, family aid,

pensions The employer take care of all the formalities for

registration to the Institute of Social Security (INPS). The social security contributions are deducted by the employer on the monthly salary.

For most employees contributions are equivalent to 33% of

gross salary: 9.19% by the employeeSELF-EMPLOYEDThey have to make their own registration and pay

their contribution to the Institute of Social Security (INPS).

SOCIAL SECURITYSOCIAL SECURITY

UNEMPLOYMENTNO dismissal and resignationDeclaration of status (registration at the public

employment service - CIFAt least 2 years assurance against unemployment in

the previous biennium: Amount: 60% of gross salary the first 6 months, 50%

on 7 th month, 40% the remaining months78 days listed on the solar year Responsable Istitution: INPS - National Social

Security Institute

UNEMPLOYMENT BENEFIT EXPORTUNEMPLOYMENT BENEFIT EXPORTRegistration at the employment office for 4 weeks

before returning to home country or in another EU country

Apply at the office of the Social Security (INPS), where contributions have been paid, ask for the document “U”

Within 7 days of departure, registration at the employment office of the "new" country and show the U to export your unemployment benefit for a maximum of 3 months

Possibility of adding months quoted in another country (U form)

TAX SYSTEMTAX SYSTEM

In the Italian judicial system there are two tax categories:

direct and indirect taxes

• Direct taxes affects income and property• Indirect taxes applies to tranfer of goods,

commercial transactions and consumers.

TAX REVENUE (table of tax rates)TAX REVENUE (table of tax rates)

% Tax% Tax INCOME INCOME BRACKETSBRACKETS

23% 23% Up to 15.000 €Up to 15.000 €

27% 27% 15.000 - 28.000 €15.000 - 28.000 €

38%38% 28.000 - 55.000 28.000 - 55.000 €€

41%41% 55.000 - 75.000 55.000 - 75.000 €€

43%43% over 75.000 €over 75.000 €

DIRECT TAX

IRPEF (IRPEF Income Tax of Individuals) and property