Working in Italy
Italian payslip explained: deductions, 13th month and TFR
Working in Italy · · 2 min read
By Lorenzo Schiavone · calculator developer
On an Italian payslip (busta paga) four deductions separate gross from net: INPS contributions, IRPEF income tax, the regional surtax and the municipal surtax. On €30,000 gross a year in Milan about €23,426 net is left: €6,574 goes to contributions and taxes.
Where the money goes: a €30,000 example
Calculator estimate for Milan, a full year, 13 payments, no other income.
| Item | Annual amount |
|---|---|
| Gross salary (RAL) | €30,000 |
| Employee INPS contributions (9.19%) | − €2,757 |
| IRPEF after tax credits | − €3,222 |
| Regional surtax | − €378 |
| Municipal surtax (estimate) | − €218 |
| Annual net | €23,426 |
INPS contributions
This is the employee’s share for pension and social benefits: 9.19% of gross pay for most employees. It is taken before tax, so it also lowers the income on which IRPEF is charged.
IRPEF and tax credits
IRPEF is the income tax, charged in brackets: 23% up to €28,000, 33% from €28,001 to €50,000, 43% above. Employment tax credits, larger for lower incomes, are then subtracted. The employer withholds it every month and settles the difference at year end or when the job ends.
Regional and municipal surtaxes
These are two local taxes on the same taxable income. Their rates depend on the region and the municipality where you live, which is why the same gross pays a different net from city to city.
13th payment, 14th payment and TFR
The 13th payment (tredicesima) is an extra month paid in December; the 14th (quattordicesima), where the agreement provides it, comes in summer. Both are already inside the annual gross.
TFR is a sum that accrues every year, equal to annual pay divided by 13.5 (about 7.41%), and is paid when the job ends. It is not part of monthly net pay.
Frequently asked questions
Why does my net pay change from month to month? ▾
Year-end adjustments, surtaxes paid in instalments, absences, overtime and extra payments change a single payslip. The calculator shows an annual average.
Is TFR part of net salary? ▾
No. It accrues separately and is paid when the job ends, unless you direct it to a pension fund.
Who pays the tax? ▾
The employer, who withholds it from your pay and pays it on your behalf.
Sources and method
- Agenzia delle Entrate · IRPEF rates and calculation
- INPS · circular 12 of 5 February 2026, TFR accrual
- QuantoNetto.Com · method, sources and limits of the estimates
Each guide states the period it covers and the assumptions behind its examples. Net pay estimates flag any prior-year municipal rates. The actual monthly payslip may differ from the annual average.