Payroll and Social Security Updates in Italy for 2025
As we prepare for 2025, significant updates to payroll, social security premiums, and tax regulations in Italy are set to take effect. At Parakar, we are committed to ensuring that your payroll systems are fully updated and compliant with these changes. Below, we’ve outlined the key updates to help you stay informed about what to expect in the coming year.
Social security contributions
- Employer contributions: Employer contributions range between 28% and 33%, depending on the sector and employee role.
- Employee contributions: Employee contributions range between 9.19% and 10.49%, based on earnings.
Minimum wage legislation
Italy does not have a national minimum wage. Instead, minimum wage standards are determined by sector-specific collective bargaining agreements (CBAs). If there are any updates to CBAs in 2025, Parakar will ensure compliance with these changes.
Income tax reform
Simplification of tax brackets will be introduced, reducing income tax rates for low- and middle-income earners. Additional deductions and allowances for families and individuals with dependents are expected to be included in the reform.
Tax filing details
Personal income tax returns for the 2024 tax year must be filed by September 30, 2025.
How Parakar support you
At Parakar, we ensure
- Seamless payroll updates: We integrate all legislative changes, including updated CBAs and simplified tax brackets, into your payroll systems.
- Compliance assurance: Our team actively monitors Italian labour and tax regulations to keep your operations compliant.
- Employee communication: We provide clear and accurate information to your employees regarding changes affecting their pay.
- Custom support: Tailored advice for managing sector-specific payroll complexities and ensuring compliance with local laws.
Grow with Parakar in Italy
At Parakar, we don’t just manage payroll—we’re your partner in business growth. Explore our range of services…
- HR Consultancy: Need help with employment contracts, compliance, or workforce management? We’re here to support.
- Payroll Consultancy: Facing payroll challenges or looking to optimize operations? Let us guide you.
- Employer of Record (EOR): Simplify international hiring without establishing local entities.
- Payroll & HR full service: Ideal for international businesses seeking seamless HR and payroll solutions across multiple countries.
Why stop at payroll? Let Parakar help streamline your operations, improve compliance, and unlock growth opportunities. If you’re ready to take advantage of our services or have questions about these updates, reach out to Parakar today. Together, we’ll ensure your payroll runs smoothly and your business thrives in 2025 and beyond.
