Medical insurance is the Italian employees’ number one benefit. Private medical insurance helps employees avoid long waiting lists associated with the state-provided medical care, and can provide tax benefits. When asked to rank four other common benefits in order of importance a typical Italian employee will say: Disability, Death, Long Term Care and Retirement
Alessandro de Besi
De Besi-Di Giacomo
An absolute must is to take a boat ride on the canals in Venice.
The strange thing is that the employee benefit environment has not seen any movement for many years now. Everyone is waiting for changes to come, but there is no clarity whatsoever about what might change and when.
After years in crisis, Italy is slowly recovering and unemployment seems to have stalled. Apart from this, the immigration of people from Africa and Eastern Europe has had an influence on the employment situation, although the Italian system hasn’t caught up with this yet.
Average Cost For Employer Sponsored Benefits
It is difficult to pinpoint an average cost for employee benefits, as it all depends on the category, salary and even age profile. The best estimate is 300 Euros per month for a mid-level manager with a mid-level salary (excluding the mandatory coverage outside of the insurance market) For a mid-level employee it would be about 150 Euros per month if they have a mid-level salary. However, it is by no means certain that these are the costs an employer would have to bear, as they might be three times higher or even more for an older employee.
In Italy, what employers really need to bear in mind when anticipating benefit costs is that there is no accurate average cost. The employee’s age, location, and job position affect the rates markedly.
In the current market, an employer entering Italy, when organizing his/her employee benefit plan should keep an eye on the tools that will help to mitigate the fringe benefit tax issue
One of the more surprising things for employers new to Italy is the fact that the insurances are based on annual gross salary as opposed to basic salary.