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:
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).
| NET SALARY | |
|---|---|
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...
For more information and assistance contact us
28.04.2021
The English taxman on the hunt for real estate income in Italy
Read
17.12.2012
Combating late payment in commercial transactions
Read
18.11.2012
How many units of stuff—say, how many ham sandwiches, iPhone apps, or hours of consulting services—must you sell in order to cover your costs?
Read
18.11.2012
Break even analysis
Read