1. THE LABOUR MARKET IN ITALY

2. Economy Italy has a capitalistic economy, which remains divided in a developed industrial North, dominated by private companies, and a less-developed, agriculture South In 2006 Italy was ranked as the seventh largest economy in the world One of the world’s largest exporter of manufactered goods Italy’s major exports are motor vehicles (FIAT,APRILIA, DUCATI), food industry (BARILLA, MARTINI, CAMPARI) and fashion industry(ARMANI, VALENTINI, VERSACE, PRADA, BENETTON, TOD’S, NEROGIARDINI, PIERO GUIDI)

3. NORTH 6,1% CENTER 8,1% SOUTH 13,2% ITALIA LABOR MARKET ITALY 8,7% Youth unemployment rate 15 -24 = 30% Foreigners unemployment rate 11%

4. EUROSTAT EMPLOYEES WITH FIXED-TERM CONTRACTS IN RELATION TO ALL EMPLOYEES 2008 (in%) TOTAL UE 2714,0 ITALY13,3 GERMANY14,7 SPAIN29,3 FRANCE14,2 UNITED KINGDOM 5,4 Labour market in Europe EMPLOYMENT RATE 2008 (in %) TOTAL UE 2765,9 ITALY58,7 GERMANY70,7 SPAIN64,3 FRANCE64,9 UNITED KINGDOM71,5

5. WORKING CONDITIONS CONTRACT  Minimum age 16 years (Apprenticeship contract)  Form: Written  Duration: temporary (more often) / permanent  A lot of atipical contracts  Working hours: 8h/day - 40h/weekly (max 48h/weekly)  Trial Period: depend to sector  Annual leave: 4 weeks / year  Maternity 2 + 3 + 6 months  Protection against unlawful dismissal

6. WORKING CONDITIONS NO minimum wage: for each sector wages are established by collective agreement Monthly payment: 13 or 14 annual payments (relative to sector) Pay slip: written (Busta Pay) The employer deducts the monthly salary for social security contributions and taxes Most companies give workers the "meal ticket" (average nominal value € 7.00 per each working day) )

7. WORKING CONDITIONS GROSS ANNUAL SALARY IN 2009 fixed by collective agreements (Full time) Source: ISTAT Sector workersEmployees Agriculture 15.83021.909 Industry 21.09925.190 Construction 21.79528.070 Trade 19.81922.562 Hotels & Restaurants 18.889 21.511 Transport Communication 23.09726.888 Services 19.82525.088 Private Health Centers 19.00124.630

8. SOCIAL SECURITY THE SYSTEM COVERS EMPLOYEES Illness, accidents, maternity, unemployment, family aid, pensions The employer take care of all the formalities for registration to the Institute of Social Security (INPS). The social security contributions are deducted by the employer on the monthly salary. For most employees contributions are equivalent to 33% of gross salary: 9.19% by the employee SELF-EMPLOYED They have to make their own registration and pay their contribution to the Institute of Social Security (INPS).

9. SOCIAL SECURITY UNEMPLOYMENT NO dismissal and resignation Declaration of status (registration at the public employment service - CIF At least 2 years assurance against unemployment in the previous biennium: Amount: 60% of gross salary the first 6 months, 50% on 7 th month, 40% the remaining months 78 days listed on the solar year Responsable Istitution: INPS - National Social Security Institute

10. UNEMPLOYMENT BENEFIT EXPORT Registration at the employment office for 4 weeks before returning to home country or in another EU country Apply at the office of the Social Security (INPS), where contributions have been paid, ask for the document “U” Within 7 days of departure, registration at the employment office of the "new" country and show the U to export your unemployment benefit for a maximum of 3 months Possibility of adding months quoted in another country (U form)

11. TAX SYSTEM In the Italian judicial system there are two tax categories: direct and indirect taxes Direct taxes affects income and property Indirect taxes applies to tranfer of goods, commercial transactions and consumers.

12. TAX REVENUE (table of tax rates) % Tax INCOME BRACKETS 23% Up to 15.000 € 27% 15.000 - 28.000 € 38% 28.000 - 55.000 € 41% 55.000 - 75.000 € 55.000 - 75.000 € 43% over 75.000 € DIRECT TAX IRPEF ( IRPEF Income Tax of Individuals ) and property