Hire employees and contractors in Italy

Remote’s guide to employing in Italy.

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  • Capital city

    Rome

  • Currency

    Euro
    (, EUR)

  • Population size

    60,317,116
    (2020 est.)

  • Languages spoken

    Italian

  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

Italy (Italian: Italia), officially the Italian Republic (Italian: Repubblica Italiana), is a country consisting of a peninsula delimited by the Alps and surrounded by several islands. Italy is located in south-central Europe, and it is also considered a part of western Europe. Italy is considered to be one of the world's most culturally and economically advanced countries, with the world's eighth-largest economy by nominal GDP (third in the European Union), sixth-largest national wealth and third-largest central bank gold reserve. It ranks very highly in life expectancy, quality of life, healthcare,and education.

  • Capital city

    Rome

  • Currency

    Euro
    (, EUR)

  • Languages spoken

    Italian

  • Population size

    60,317,116 (2020 est.)

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (29 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    22%

  • GDP - real growth rate

    0.8583% (2018 est.)

Grow your team in Italy with Remote

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. The complexity of employment regulations in Italy makes full compliance with employment laws a burdensome process.

Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.

Risks
of misclassification

Italy, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Italy

Italy does not have a nationally unified labor code. Labor legislation is wide-ranging, with laws, regulations and statutes that bear on labor relations. The Constitution of Italy (articles 35-47) contains declarations of principle relating to fair payment, maximum working hours, vacation, protection of women and minors, social insurance, illness, disability, industrial diseases and accidents, Freedom of Association and the right to strike. The Workers' Statute of 1970 was modified, and plays an important role.

Italian employment law provides strong labor conditions and protections for employees, so employing people will generally be an important investment and commitment.

Temporary agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Italy.

Public holidays

Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.

Minimum Wage

There is no statutory minimum wage in Italy, but national collective bargaining agreements set minimum wages on a sector-by-sector basis.

Payroll Cycle

For customers of Remote, salaries are monthly based, for work between the first and last day of the month, as well as an additional 13th and 14th month payment.

Employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

The 13th month salary is paid around mid-December and the 14th month salary is paid around mid-June.

Note that collective agreements in Italy usually determine whether these additional salary payments are required. Many collective agreements mandate one or both of the 13th and 14th month salaries.

Onboarding Time

We can help you get a new employee started in Italy fast. The minimum onboarding time we need is only 9 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Italy

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe. Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they call home. 

Our benefits packages in Italy are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Our core benefits (which often include things like healthcare) are required in most countries where we hire. We do not require customers to offer benefits in Italy due to its strong public system and local laws that protect us (and you!) against claims of non-discriminatory hiring practices. However, we do recommend that employers in Italy offer benefits to their employees based on market standards. Note that we do not add a markup on any benefits premiums or administration costs.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Calculate the cost to hire an employee
in Italy

Taxes in Italy

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Italy.

  • Employer

    • 32% - Social Security

    • 4% - IRAP Regional Tax and Bank Holidays

    • 1.5% - INAIL (Injuries Insurance)

    • 7.407% - TRF (Severance)

  • Employee

    • 9.19% - 10.48% - Social Security

    • 23% - Up to 15,000

    • 25% - 15,000 - 28,000

    • 35% - 28,000 - 50,000

    • 43% - Above 50,000

Types of leave

Statutory leave

All full-time workers are legally entitled to a minimum of four week's paid holiday leave a year. In addition, full-time workers have 12 public holidays a year. Individual contracts can provide for a longer period of holiday entitlement and holidays cannot be replaced by a payment in lieu. Amount of holiday leave also depends on the national collective agreement that the employment contract is under.

Pregnancy and maternity/paternity leave

Employees are entitled to five months of full paid salary. Usually, one month is taken before the birth of the child and four months are taken after. Expecting mothers are entitled to six weeks of pregnancy leave (before the due date) and at least eight weeks maternity leave (after childbirth). Fathers can take seven days of paid paternity leave within five months of the child being born and can take a further day in place of the mother.

Parental leave

In addition to maternity and paternity leave, parents can take extended unpaid parental leave for up to 10 months. For a mother, this can be up to six months in addition to the maternity leave. A mother who chooses not to take this unpaid leave is eligible to work six-hour days until the child is 12 months old.

Other leave

  • Adoption: upon adoption of a child, employees are entitled to 3 months of maternity or paternity leave and employees are entitled to the same financial benefits of natural children. Parents can also take parental leave in the first three years the child is in the family for same periods and financial benefits. Applies to both parents.
  • Work-related injury leave: collective bargaining agreements or individual contracts generally provide for a period paid time off in the caseof work injury. The period is generally between 6 and 12 months and applies for both a single period of sick leave and multiple periods. The employee is entitled to keep their job and receive their salary in proportion to the period set out in the collective bargaining agreement or individual employment contract.

Employment termination

Termination process

Italian employers can in general terminate an employment contract in the following ways:

  • Urgent dismissal of the employee without notice for just cause, for example in case of theft or any other serious misconduct;
  • Ordinary dismissal with notice based a subjective reason, involving breaches of of the employee's legal and contractual duties; or
  • Ordinary dismissal with notice based on an objective reason, involving economic factors related to production, the organisation of work, the proper functioning of the business and redundancy); or

Notice period

Notice periods are decided on and governed by collective bargaining agreements.

Probation periods

The statutory probationary periods in Italy are 45-60 days for employees not assigned to management functions and six months for all other employees. Applicable probation periods are usually mentioned in the national collective bargaining agreement the employer is working under.

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