* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Rome
Currency

Euro (€)

Timezone

CET (GMT +1)

Payroll
Monthly
Employment Cost

38.00%

Annual Leave

22 days

In-demand Specialties*
Tourism, Manufacturing, Agriculture

The Ultimate Guide to Hiring Employees in Italy

Simplify hiring employees in Italy by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Italy-guide

Key Considerations Before Hiring In Italy

Employing in Italy requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Italy with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Italy quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Following the conclusion of World War II, Italy's economy has advanced to become one of the most robust in Europe. On a global scale, Italy ranked as the eighth-largest economy in 2020 and the third-largest within the European Union, trailing behind Germany and France.

The driving force behind the Italian economy is the production of high-quality consumer goods by small- and medium-sized enterprises, many of which are family-owned. Consequently, Italy earned recognition in the World Bank's 2019 Doing Business Report as one of the most business-friendly countries.

Alongside its commendable low unemployment rate, Italy is renowned for its skilled, dedicated, and reasonably priced remote workforce. This makes the country an attractive destination for international companies seeking qualified employees.

Italy's labour force demonstrates excellence across diverse fields, characterised by a strong work ethic that is reflected in the superior quality of products manufactured by Italian companies.

playroll-good-to-know

Fundamental Aspects of Employment in Italy

Italy does not mandate written employment contracts; oral agreements suffice. However, certain clauses must be documented, with employers required to inform employees the following in writing within the first 30 days of starting employment:

  • Identification of both parties
  • Starting date and and employment duration (for temporary contracts)
  • Workplace and working hours
  • Job description
  • Base salary (including compensation or benefits)
  • Probation period (if applicable)
  • Total number and duration of paid holidays
  • Notice periods for employment termination
  • Legal grounds
  • Reference to collective agreements

Probationary Period in Italy

In Italy, probation periods vary based on the collective bargaining agreement. Non-managerial roles have a 3-month probation, while managerial positions entail a 6-month probationary period.

Working hours in Italy

Regular working hours in Italy amount to 8 hours per day and 40 hours per week, calculated over a seven-day period rather than a fixed workweek. Additionally, employees are entitled to a daily rest period of 11 hours within each 24-hour cycle.

Overtime in Italy

Work exceeding the standard weekly hours is paid by overtime and is regulated by employment contracts or collective agreements. The National Collective Agreement (NCA) typically determines the maximum limits for overtime pay.

Navigating Key Aspects of Payroll in Italy

Italy has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Italy

1 January - 31 December is the 12-month accounting period that businesses in Italy use for financial and tax reporting purposes.
monthly

Payroll Cycle in Italy

The payroll cycle in Italy is usually monthly, with employees being paid on the 27th of each month.

Minimum Wage in Italy

Minimum wages and salaries in Italy

Italy has no set minimum wage at the national or regional level. Minimum wages are typically determined by the National Collective Agreements (NCAs) for different contract levels. As of July 2018, payments must be made through checks, bank transfers, or electronic methods. Cash payments are no longer allowed.

Bonus Payments in Italy

In Italy, the 13th-month pay, referred to as the "tredicesima," is provided annually alongside the December salary. Additionally, certain National Collective Agreements (NCAs) may include a 14th-month instalment, typically given in June.

Comprehensive Overview of Employment Taxes in Italy

Understanding the tax obligations for both employers and employees is crucial when operating in Italy's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Italy.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 38.00% on top of the employee salary in Italy.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Italy, the typical estimation for employee payroll contributions cost is around 10%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The individual income tax in Italy is calculated according to progressive rates. Factors such as household status and number of children may influence overall rates.

Tax Rate Income Bracket

Pension in Italy

INPS manages Italian pensions, funded by employer and employee contributions through Social Security. To qualify for old-age benefits, individuals need a minimum of 20 years of contributions, must meet the age requirement (67 for both genders), and are about to retire.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Italy tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Italy

When it comes to terminating employment in Italy, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

As per the National Collective Agreement (NCA), termination requires justification and advance notice, unless the employee fails to meet mutually agreed-upon commitments, such as job responsibilities, engaging in serious misconduct, or termination due to economic reasons. Acceptable grounds for termination include:

  • Voluntarily by the employee
  • Mutual agreement
  • Unilaterally by the employer (based on probation period, objective grounds, disciplinary dismissal, or in exceptional cases, without cause)
  • Expiration of contract

Notice Period

In Italy, the notice period for termination depends on whether it's initiated by the employer or the employee. It is determined by factors such as the applicable National Collective Bargaining Agreement, length of employment, and employee classification. Employer-initiated terminations may have a notice period of 30 days to 12 months, while employee resignations could range from 30 days to 4 months, as per major NCBA in Italy.

Severance Pay

Severance pay is granted in cases of authorised employer-initiated termination. The TFR (Trattamento di fine rapporto) is given to the employee upon termination, accrued monthly by the employer. Calculated by dividing the annual salary by 13.5, it also includes 1.50% for each year of service and compensation for inflation.

Annual Leave Entitlements and Company Policies in Italy

The annual leave entitlement in Italy is 22 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Italy

Italy recognises 12 public holidays, which are not included in the minimum holiday entitlement. However, employers typically grant their employees time off on public holidays. Collective bargaining agreements may specify that employees are entitled to take the following regional and national holidays off from work:

Holiday Date

Paid Time Off in Italy

Maternity Leave in Italy

Paternity Leave in Italy

Sick Leave in Italy

Parental Leave In Italy

Italy's Benefits Built Into Playroll

Competitive benefits package in Italy

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Italy's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Italy

Make your benefits package in Italy a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Italy

Playroll allows you to provide localized benefits for employees in Italy within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Italy create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Italy

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Italy.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!