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In Italy, 13th month pay is mandatory. In fact, Italy also has a 14th month pay that is paid in June and this is also mandatory.
13th and 14th month pay is calculated as the equivalents of one month’s salary.
13th month salary is paid in June and 14th month payment is paid over Christmas time (late December).
13th and 14th month pay is an extra payment by the employer in addition to the normal salary payments.
Yes, 13th month salary is taxable in Italy. It is subject to the same taxation rules as the regular salary and is subject to social security contributions as well.
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13th month pay and 14th month pay in Italy is mandatory.
Yes, it is mandatory to pay employees a summer bonus and a Christmas bonus in Italy. This creates a 13th and 14th month payment.