# Your First Italian Payslip: How Gross Becomes Net

> Employee social security, IRPEF bands, employment tax credits and local surcharges, explained for professionals who just moved to Italy.

The first Italian payslip, the *busta paga*, is a dense page of codes and abbreviations. For someone who just arrived it can be alarming: the gap between gross and net looks large, and the line items have unfamiliar names. Here is how to read it.

## Step 1: employee social security

From gross pay, the employer first withholds your share of social security: 9.19% for most private-sector employees, plus 1% on the part of your annual pay above €56,224. These contributions go to INPS and build your Italian pension. They also fund unemployment benefit, sick pay and maternity pay.

For people first insured from 1996 onwards, which includes anyone starting an Italian career now, pension contributions stop above an annual ceiling of €122,295 in 2026.

## Step 2: income tax (IRPEF)

What remains is taxable income. Income tax, IRPEF, is progressive:

| Taxable income | Rate |
|---|---|
| Up to €28,000 | 23% |
| €28,000 to €50,000 | 33% |
| Above €50,000 | 43% |

Each band is taxed at its own rate: moving into a higher band only affects the part above the limit.

## Step 3: tax credits

Employment tax credits reduce the tax. They are largest on lower salaries and reach zero at €50,000. Between €20,000 and €40,000 an additional credit of up to €1,000 applies. Credits for dependent family members can reduce tax further once your spouse or children are with you and registered.

## Step 4: local surcharges

On top of IRPEF you pay a regional and a municipal surcharge, depending on where you live. Rates and exemption thresholds vary by city; Milan, for instance, exempts incomes up to €23,000 from its 0.8% municipal surcharge, according to secondary sources. The surcharges are often withheld in installments during the following year, so your first months may look slightly better than your steady state.

## What the payslip shows

A typical payslip lists:

- **Competenze:** what you earned, base pay, any above-minimum amount, overtime, allowances, the 13th or 14th month when due;
- **Trattenute:** what was withheld, contributions, IRPEF, surcharges;
- **Netto in busta:** what is transferred to your account;
- **Progressivi:** year-to-date totals;
- **TFR:** the severance accrued, which is not paid out monthly but set aside or sent to a pension fund.

## Why your first payslip may look different

- You joined mid-month, so the salary is pro rata.
- The 13th month accrues month by month; if you joined in, say, September, December's extra installment is only partial.
- Tax credits are spread over the year and adjusted at year end.
- Your family is not yet registered for dependent credits.

## The CU at year end

Each year you receive the *Certificazione Unica* (CU), the annual summary of income, tax and contributions, by 16 March. It is your proof of income for leases, loans, and for a family reunification file. Keep every one.

## Try your own numbers

The [net pay calculator](/net-pay-calculator.html) applies these 2026 rules to your RAL and city. It is an estimate for a single person with no other income; your real payslip may differ slightly.

## Who to ask

When something on your payslip looks wrong, ask the person who calculated it. As your employer we run payroll in-house and answer in Italian or English. Read more in [from RAL to net pay](/italy-salary-components.html).

## Questions from employers and staff

**Why is my December payslip larger?** The 13th month is paid in December, unless it is spread pro rata.

**Can I reduce my tax?** Through deductions for some expenses in your annual return, and through tax-efficient benefits such as meal vouchers and pension fund contributions.

**What is the trattamento integrativo on my payslip?** A tax supplement for lower incomes. Most professionals on Blue Card salaries are above the range where it applies.

**What are the codes on the right of the payslip?** Year-to-date totals and the details of tax and contribution bases. We go through them with you on your first payslip, line by line, in English if you prefer.

**Is there a special regime for people moving to Italy?** Italy has had tax incentives for workers who move their tax residence to Italy, with conditions that have changed over time. We have not verified the current rules for this article; ask an adviser whether they apply to you before you move.

**Will my net pay change when my family arrives?** It can: credits for dependent family members reduce IRPEF once your spouse or children are registered as dependants. Tell us when they arrive.

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Source: https://italybluecard.com/articles/italian-net-pay-explained-newcomers.html · 2026-10-16