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29.10.2013 - How to read and understand Italian pay slips (busta paga)?

Paying salaries is a principal duty of every employer. In general, its amount is defined by the job position and qualification that specifies the related salary determined by the collective labour agreement. The salary may contain various bonuses according to the regulations provided by the law and collective labour agreements.

At the end of every period of employment the employer is obliged to emit a detailed written salary statement – the pay slip.

In this case, the employee can verify if the compensation corresponds to the principles of the collective labour agreement (ital. CCNL – Contratto collettivo nazionale di lavoro).


The gross salary is the one that contains taxes and social security contributions at the expense of the employer. It consists of:

  • Basic salary
  • Bonuses
  • Allowances
  • Holiday work, paid leaves, ROL (ital. Recupero ore lavorate – Work hours recovery)
  • Paid vacation and 13th month pay
  • Accident and sickness insurance premiums


The net salary is the take-home pay that the employee receives after having paid all the taxes, insurance premiums and social security contributions (INPS).


Gross salary

less (-) Social security contributions (INPS)
equals (=) Taxable income
less (-) (IRPEF deduction less tax exemptions)
equals (=) Net salary free of deductions
more (+) Family allowance
equals (=) Net salary presented on the pay slip

To be continued...

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