How do I read my payslip (busta paga)?

The payslip (busta paga) shows how the gross amount of a month becomes the amount paid out. Every payslip looks a little different: layout, order and labels depend on the employer or its payroll office, because the law does not prescribe a fixed layout. You will, however, usually find the following components on every payslip – sometimes under another name or in another place. This article does not replace personal advice. Legal position 2026, as of 11.10.2026.

Obligation and mandatory details

Employers must give their employees (except managers) a payslip with every payment of wages (L. 4/1953). It shows name, job title (qualifica), pay period, each component of pay and each deduction separately and, since 1 May 2026, also the national collective agreement (CCNL) applied, with the unique code assigned by the CNEL. Instead of a separate payslip, the employer may hand over a copy of the entries in the Libro unico del lavoro (LUL). The law does not apply to the State, regions, provinces and municipalities, to domestic workers and to smaller farms (up to 3,000 working days of employed labour in the business year).

Pay components (competenze)

Basic pay, allowances, overtime and bonuses, where applicable the 13th or 14th monthly salary, and expense reimbursements together make up the gross amount for the month.

Social security contributions

Your social security contributions come off first, in principle on the whole wage. For most employees in the private sector, the pension contribution is 9.19% (the employer pays the larger part on top); depending on the business, small contributions for wage supplementation are added (see the question on INPS contributions).

Tax

On the taxable amount (imponibile fiscale: pay without contributions and tax-free items), the employer calculates IRPEF using the tax bands converted to the month (2026: 23%, 33%, 43%), the gross tax (IRPEF lorda). From this it deducts the tax deductions (detrazioni) pro rata, above all the deduction for employees and, if requested, for dependent family members. What remains is the net tax (IRPEF netta), which is withheld. For the 13th and 14th monthly salary, it calculates without these deductions (see the question on this). In 2026, in the private sector, a substitute tax applies to certain parts instead of IRPEF and surcharges, for example 5% on pay rises from renewed collective agreements and 15% on night, public holiday and shift premiums, subject to conditions and income limits (see the question on the 2026 special taxes).

Relief: depending on total income, a tax-free amount (up to €20,000) or an additional deduction (up to €40,000) is added and, for low incomes, also the trattamento integrativo; the employer takes them into account in your pay (see the questions on these).

Surcharges: the regional surcharge and, if your municipality levies one, the remainder of a year’s municipal surcharge are withheld by the employer after the year-end adjustment in no more than eleven monthly instalments, so in the following year; if the employment ends, in one go. For the municipal surcharge of the current year, a 30% advance payment in no more than nine instalments is added from March. In South Tyrol, for 2025 and 2026, no regional surcharge is payable up to €35,000 of taxable income because of a provincial deduction; not every municipality levies a municipal surcharge (see the question on the IRPEF surcharge).

Year-end adjustment (conguaglio): by 28 February of the following year at the latest, and when the employment ends, the employer recalculates the tax for the whole year – the net pay for that month may therefore differ.

Severance pay (TFR)

An amount is set aside for each year: at most the annual pay (without expense reimbursements and occasional payments; the collective agreement may provide otherwise) divided by 13.5, less 0.5% of the pay as a pension contribution. The amount set aside up to the end of the previous year is revalued every year by 1.5% plus 75% of inflation and is paid out when the employment ends; if you join a supplementary pension fund, it is transferred there in full or in part.

Net pay

The amount paid out (netto in busta) is the gross amount minus contributions, taxes and surcharges, plus tax-free amounts, minus other deductions (e.g. supplementary pension, trade union).

What you should check

• Collective agreement and job classification: do they match the written information you received when you were hired?
• Hours: are attendance, overtime and absences correct? The employer must record them in the LUL.
• Holiday and hours of leave: are the balances for holiday (ferie) and, if your collective agreement provides for them, hours of leave (e.g. ROL) correct? By law you are entitled to at least four weeks of paid holiday per year.
• Family deductions: the employer grants them only on your declaration, which also applies to later years; you must report changes in good time. They are available, among other things, for a spouse who is not legally separated and for children aged 21 to under 30, in each case within income limits.

The question on net pay differences lists typical reasons for deviations. The Net salary calculator estimates your annual net pay.