๐Ÿงฎ

๐Ÿงฎ ๐Ÿ‡ฎ๐Ÿ‡น Gross to Net Payroll โ€” Italy (PYIT) | SAP ECP

Module: PYIT | Molga: 14 | Currency: EUR | Group: Europe
Includes: INPS (Previdenza) | IRPEF | Addizionale Regionale/Comunale | 14 salaries | TFR | 3 case studies

๐Ÿงญ The Gross-to-Net Pipeline

Retribuzione Lorda (/101) โ†’ Contributi INPS EE โ†’ IRPEF โ†’ Addizionali โ†’ Netto (/560)
Italy has 13โ€“14 salary payments/year, TFR (Trattamento di Fine Rapporto) mandatory severance accrual, and INPS social insurance.

๐Ÿ“Œ Italy Payroll Anchors

  • INPS Previdenza: ~9.19% EE + ~23.81% ER (private sector, mixed contracts)
  • Disoccupazione (unemployment via INPS): included in above
  • IRPEF: progressive 23%/35%/43%
  • Addizionale Regionale: 1.23%โ€“3.33% (region-dependent)
  • Addizionale Comunale: up to 0.9%
  • TFR: 6.91% of gross per year (held or paid to INPS fund)
  • 13th month: mandatory December; 14th month: contractual (June)
  • Detrazioni: tax credits for employment income + dependents

๐Ÿ‘ฅ Case Studies

ใ…ค
Case A: Engineer
Case B: Sales Rep
Case C: Manager
Monthly Gross
EUR 2,500
EUR 1,800
EUR 7,000
INPS EE (~9.19%)
EUR 230
EUR 165
EUR 644
IRPEF (approx.)
EUR 420
EUR 240
EUR 2,100
Net Pay (approx.)
EUR 1,850
EUR 1,395
EUR 4,256

๐Ÿ—๏ธ Step 1 โ€” Salary Structure (EUR)

Component
WT
Monthly
Notes
Stipendio base
IT01
2,500
All subject to INPS + IRPEF
13ยฐ Mensilitร 
IT20
โ€”
December payment
TFR accrual
/3TF
~174
6.91%/12 per month
GROSS /101
ใ…ค
2,500
ใ…ค

๐Ÿ”ข Step 2 โ€” INPS + IRPEF (Case A)

Deduction
Rate
Amount
INPS EE
9.19%
EUR 230
IRPEF (annual ~EUR 5,040 / 12)
Progressive
EUR 420
Addizionale Regionale (1.73%)
On IRPEF base
~EUR 36
Total Deductions
ใ…ค
~EUR 686

๐Ÿ”ข Step 3 โ€” Net Pay

ใ…ค
EUR 2,500 gross
Gross /101
2,500
INPS EE
โˆ’230
IRPEF
โˆ’420
Addizionali
โˆ’36
Net /560
~1,814

๐Ÿท๏ธ Key Wage Types

WT
Description
Payslip?
IT01
Stipendio
โœ…
/3I1
INPS EE
โœ…
/3T1
IRPEF
โœ…
/3TF
TFR Accrual
Internal
/560
Netto
โœ…

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