Employ in Italy
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Tailored Employment Solutions in Italy
At PeoItaly, we understand that your business has unique needs. Our services are designed to help you hire and employ staff in Italy with ease and confidence.
From entity setup and legal compliance to ongoing HR management, we provide comprehensive support throughout your business journey in Italy.
Minimum Salary
For employees hired through an Employer of Record (EOR) in Italy, a minimum gross annual salary of €24,200 is typically required. This figure ensures compliance with Italian labor standards and is aligned with collective bargaining agreements for most positions.
Personal Income Tax in Italy
For employees hired through an Employer of Record (EOR) in Italy, a minimum gross annual salary of €24,200 is typically required. This figure ensures compliance with Italian labor standards and is aligned with collective bargaining agreements for most positions.
- Current national tax brackets (2024):
| Income Bracket (2024) | Tax Rate |
|---|---|
| Up to €28,000 | 23% |
| €28.000 to €50.000 | 35% |
| Over €50,000 | 43% |
In addition to national taxes, regional and municipal surtaxes (typically 1–3%) may also apply, depending on the worker’s place of residence.
Employer Payroll Breakdown
Employers in Italy are responsible for a wide range of mandatory contributions. These employer-side charges are generally calculated as a percentage of the employee’s gross salary and can amount to around 37.42% of monthly wages.
For Dirigente-level employees (executive-level roles), there is an additional fixed contribution of approximately €1,656.51 per year.
Hiring Quadro-level employees (middle management) includes additional contributions:
One-time registration with QuAS healthcare fund: €340
QuAS healthcare fund annual fee: Up to €350, prorated by months worked
Annual Quadrifor training contribution: €50
Personal Income Tax in Italy
| Contribution type | Rate (%) |
|---|---|
| Social Security | 23.81% |
| National Sickness Fund | 2.44% |
| Maternity Fund | 0.24% |
| Severance Accrual (TFR) | 6.91% |
| Severance Guarantee Fund (INPS Guarantee) | 0.20% |
| Unemployment Insurance | 1.61% |
| Occupational Accident Insurance (INAIL) | 0.40% |
| Furlough Fund (FIS) | 0.60% |
| Extended Furlough Fund (CIGS) | 0.68% |
| Family Support Contributions (CUAF) | 0.68% |
Note: These percentages may vary slightly based on sector, employee classification, and CBA agreements.
Additional Salary Payments
In Italy, employees often receive extra monthly payments commonly referred to as the 13th and 14th salaries. These are not bonuses, but rather standard components of compensation in many sectors:
13th salary: Paid in December, it is an extra month’s salary.
14th salary: Paid typically in June or July, depending on the industry.
Some employers choose to distribute these payments in monthly installments, meaning employees receive 1/14 of their annual salary each month.
Onboarding Costs
When hiring in Italy, certain mandatory onboarding expenses must be covered by the employer:
Pre-employment medical exam: €119
Health & safety training:
In Italian: €42
In English (optional): €54
These costs are required to comply with Italian labor safety and health regulations, particularly for physical or on-site roles.
Working Hours and Overtime
The standard full-time schedule in Italy is 40 hours per week, typically spread across five working days (Monday to Friday).
Overtime is regulated and must be compensated according to strict rules, especially for non-executive employees:
| Overtime Type | Rate |
|---|---|
| First 8 hours of extra work | 115% of base hourly wage |
| Additional hours beyond the first 8 | 120% |
| Night work (10:00 PM – 6:00 AM) | 150% |
| Sundays and public holidays | 130% |
The maximum allowable overtime is 250 hours per year. Note that Dirigente-level employees (executives) are generally excluded from overtime pay entitlements.
Paid Time Off (PTO)
Full-time employees in Italy are entitled to a minimum of 20 working days of paid annual leave, not including public holidays. This is considered a statutory right and applies regardless of seniority or industry.
Accrual: Vacation days typically accrue at a rate of 1.67 days per month.
Usage: Employees are legally entitled to take at least 10 consecutive days of leave per year.
Carryover: While vacation can often be carried over to the following year, it should be used within 18 months to avoid expiration.
Part-time employees receive prorated PTO based on the number of hours or days worked per week, as outlined in their employment contract.
Public Holidays
Italy observes a combination of national and regional public holidays, which are paid and do not count against PTO balances.
Employees are entitled to time off on 12 nationwide holidays, plus up to 10 additional holidays depending on the region or municipality where they work.
National public holidays include:
New Year’s Day (Capodanno)
Epiphany (Epifania)
Easter Sunday (Pasqua)
Easter Monday (Lunedì dell’Angelo)
Liberation Day (Festa della Liberazione – April 25)
Labor Day (Festa dei Lavoratori – May 1)
Republic Day (Festa della Repubblica – June 2)
Assumption of Mary (Ferragosto – August 15)
All Saints’ Day (Ognissanti – November 1)
Immaculate Conception (Immacolata Concezione – December 8)
Christmas Day (Natale – December 25)
St. Stephen’s Day (Santo Stefano – December 26)
Regional holidays may commemorate a city’s patron saint or historical events and vary across provinces. If a holiday falls on a weekend, there is no legal obligation to provide a substitute day off.
Maternity Leave
Pregnant employees are entitled to five months of maternity leave, during which absence from work is mandatory.
Standard arrangement: Two months before the expected birth and three months after.
Alternative option (with medical clearance): One month before and four months after birth.
Compensation:
80% of gross salary is covered by INPS (National Social Security)
20% is typically covered by the employer, depending on the applicable CBA
Maternity leave cannot be extended but may be followed by parental leave.
Paternity Leave
New fathers (or secondary caregivers) are entitled to 10 working days of paid paternity leave, which must be taken within five months of the child’s birth.
Leave can be taken consecutively or split across days
The employee receives 100% of salary, fully funded by INPS
Paternity leave is not extendable, but eligible employees may request additional time off under parental leave provisions.
Parental Leave
After maternity or paternity leave ends, both parents can take up to 11 months of parental leave, to be used before the child’s 12th birthday.
Leave can be shared and split flexibly between both parents
A single parent can take a maximum of 6 months
If both parents participate, they are granted one bonus month (up to 11 total)
Compensation:
INPS pays 30% of the employee’s salary during the first 9 months of leave
Any remaining months are typically unpaid unless covered by additional agreements
Parental leave cannot be extended beyond the legally allowed maximum.
Sick Leave
Employees are entitled to paid sick leave for up to 180 calendar days per illness, with shared financial responsibility between the employer and INPS.
| Days | Structure |
|---|---|
| Days 1–3 | Employer (100% of regular pay) |
| Days 4–20 | INPS (50%) + Employer (25%) |
| Days 21–180 | INPS (66.6%) + Employer (33.3%) |
Additional notes:
The employer must notify INPS and maintain accurate records of absences.
Collective agreements may offer improved rates or additional sick days beyond the legal minimum.
If the employee remains unfit for work after 180 days, extended protections may apply through disability or invalidity assessments.
Employment Contracts
All employees in Italy must receive a written employment contract. These contracts are almost always regulated by a national collective bargaining agreement (CCNL), which defines minimum wages, job classifications, leave entitlements, and notice periods.
Key contract types:
Open-ended (indefinite): The most common and stable form of employment
Fixed-term: Permitted under specific conditions, with a legal maximum duration of 24 months (including renewals)
Part-time: Can be horizontal (shorter days), vertical (fewer days), or mixed
Contracts must include:
Job title and classification
Work schedule
Gross salary
Place of work
Applicable CBA
Probation terms, if applicable
Probation Period
Italian law allows for a trial period (periodo di prova), but it must be clearly stated in the employment contract from the outset. The length of the probationary period depends on the employee’s role and classification under the applicable CBA.
Typical probation durations:
6 months for executives (Dirigente level)
3 months for office and administrative staff (Impiegati)
Up to 60 days for manual or entry-level workers (Operai)
During probation:
Either party may terminate the contract without cause
No notice or severance is required unless stated otherwise in the contract or CBA
Termination of Employment
Ending an employment relationship in Italy—whether by resignation, mutual agreement, or dismissal—must follow specific legal procedures.
Notice periods:
Vary by job category, tenure, and CBA
Range from 15 days to 120 days, depending on seniority
Grounds for termination:
Just cause (giusta causa): Immediate dismissal due to serious misconduct
Justified objective reason (giustificato motivo oggettivo): Business-related reasons, such as redundancy
Justified subjective reason (giustificato motivo soggettivo): Performance or behavioral issues
Severance pay (TFR):
Employers must pay the Trattamento di Fine Rapporto, or end-of-service allowance
TFR is accrued monthly and equals approximately 7% of the employee’s annual gross salary
Paid upon termination regardless of the reason
Additional termination costs (where applicable):
Unused vacation payout
Notice indemnity if notice is not given or worked
Outplacement or support obligations, in certain restructurings
Calculate Your Costs of Hiring in Italy
Partner with PeoItaly to streamline your employee hiring in Italy. Our EOR and PEO services ensure compliance with Italian employment laws, reducing administrative burdens and providing expert support. This allows you to focus on your business growth while we handle the complexities of the local hiring process.
Hiring and Employment Solutions in Italy
Partner with PeoItaly to streamline your employee hiring in Italy. Our EOR and PEO services ensure compliance with Italian employment laws, reducing administrative burdens and providing expert support. This allows you to focus on your business growth while we handle the complexities of the local hiring process.
Expert Guidance in Employee Hiring
Navigate the hiring process in Italy with ease. PeoItaly offers expert guidance in employing staff under the Employer of Record (EOR) and Professional Employer Organization (PEO) frameworks, ensuring full compliance with Italian labor laws while simplifying the recruitment and setup process.
Customized Employment Solutions
Tailor your workforce strategy with PeoItaly's customized employment solutions. We specialize in creating employment agreements that align with Italian employment standards and your business needs, ensuring a smooth process when you hire employees in Italy.
Payroll and Compliance Management
Maintain compliance with Italian employment regulations with our payroll and compliance management services. We ensure accurate payroll processing and adherence to legal standards, reducing your administrative burdens and legal risks when you employ in Italy.
Comprehensive HR Management
Streamline your HR operations in Italy with our comprehensive HR management services. Acting as your remote HR department, PeoItaly handles all aspects of human resources, from payroll to compliance and employee relations, allowing you to focus on hiring and managing your workforce.
Employee Onboarding and Support
Ensure a seamless integration for your new hires in Italy with our dedicated onboarding support. PeoItaly facilitates the entire employee onboarding process, offering guidance on labor laws, and managing benefits programs to make hiring and retaining talent in Italy as smooth as possible.
Focus on Core Business Activities
Leverage our expertise to free up your internal resources. By outsourcing HR functions to us, your team can concentrate on core business activities, trusting that the backend processes of employing and managing staff in Italy are handled efficiently and compliantly.
How it Works
Share Your Hiring Needs
Tell us about the roles you need to fill and your business goals in Italy. We’ll guide you through selecting the right solutions for seamless hiring.
We Onboard and Manage
We hire your employees under our local entity, ensuring compliance with Italian laws. We handle contracts, payroll, benefits, and taxes.
Your Team Thrives, You Scale
Your employees work for you as if they’re local hires, while we take care of the administrative overhead. You focus on growing your business.
Why Peoitaly
Licensed Excellence
Peoitaly, officially recognized by the Italian Ministry of Labour, offers tailored employment, payroll, HR, and compliance services, freeing you to focus on growing your business.
Simplifying Your Expansion into Italy
Expanding into Italy is simple with us. We handle establishment setups and employment contracts, guiding you through language and cultural complexities so you can focus on growth stress-free.
Compliance Made Easy
Staying compliant with local laws is a major challenge in international business. We simplify this with expert HR guidance, helping you navigate Italian labor laws, save time, and avoid costly mistakes.
Holding Onto Values
Integrity drives everything we do at Peoitaly. Our customer-focused approach ensures we act in your best interests, offering more than services—we’re a partner invested in your success.
Fostering Happy Clients
Nothing makes us happier than seeing our clients succeed. By streamlining local recruitment, handling admin tasks, and supporting expansion into Italy, we cultivate thriving partnerships and help you achieve new heights.
Get in Touch
Let Peoitaly do the heavy lifting of HR, so you can go back to doing what you do best-growing your business!
from hiring to compliance
Ready to start?
Choosing Peoitaly means partnering with a business that combines local expertise with a global understanding, offers personalized and unique solutions, prioritizes comprehensive employee care, and uses technology to support, not replace.
Your questions, answered
Is the Employer of Record industry regulated in Italy?
The concept of a company hiring workers in Italy without establishing a local presence or representative office is not envisioned in the Italian legal system. However, the activity performed by the EOR, which involves hiring staff on behalf of a third party, is regulated by Italian law. Specifically, Legislative Decree No. 81 of June 15, 2015, establishes the rules and guidelines.
This means that any agency offering EOR services in Italy must possess the requirements outlined by the law and have the necessary ministerial authorization to conduct such activities. The provision of staffing services is a serious matter in Italy, and conducting this activity without a valid license is prohibited. The law penalizes not only those who provide the service illegally but also the client companies that use it, with fines up to EUR 80,000.
Therefore, a foreign company wishing to hire workers in Italy through an EOR must ensure that the chosen provider has obtained the necessary authorizations from the Ministry of Labor. The quickest way to verify if an EOR agency is authorized is to check if it is listed in the national register of ANPAL at this site: https://myanpal.anpal.gov.it/albi-informatici/. If the provider’s name does not appear on the list and does not include the explicit term “somministrazione,” it means that the company is NOT authorized to operate as an EOR.
Peoitaly not only holds the required license under current regulations but also offers a fully in-house managed EOR service without the use of external partners.
How many workers can I hire through an EOR?
There is no strict limit. However, to avoid the risk of creating a permanent establishment in Italy, the client company should keep the number of workers hired through the EOR to a minimum and, above all, avoid activities that would require paying corporate taxes in Italy. An example would be selling products and services in Italy to local companies and residents.
Can I always use an EOR provider in Italy?
No, not if the purpose is to evade state laws. For instance, if a foreign company needs a specific license to operate in Italy, using an EOR provider to circumvent this requirement would be against the regulations and the law.
Is it mandatory to apply collective labor agreements (CCNL)?
No, it is not mandatory. However, it is highly advisable. By applying a specific CCNL, the parameters within which one can operate are clearly defined, providing protection against legal disputes and potential claims.
Who is responsible for training workers in Italy?
Both the EOR provider and the client company share this responsibility. General training is the responsibility of the EOR (staff leasing agency), while specific training is up to the client. This is because only the client knows the specific tasks assigned to the workers and the associated risks.
Who is responsible for the health surveillance of workers?
Health surveillance is exclusively the client’s responsibility. The rationale is the same: only the company using the labor (the client) is aware of the risks associated with the workers’ tasks.
What benefits can be offered to workers hired through an EOR?
Peoitaly can offer leased workers benefits such as a company car, corporate phone and SIM, fuel card, credit card, Telepass, meal vouchers, and more.
Who handles disciplinary actions?
Disciplinary actions against workers are exclusively the responsibility of the EOR provider, as the EOR is the employer. However, disciplinary action can only be taken based on documented evidence provided by the client that validates the reason for the action.
Is the labor cost through an EOR the same as any other company in Italy?
No, the labor cost through an EOR provider is slightly higher. This is because the staffing agency is required to pay additional contributions for the training and retraining of workers.
Is there a maximum limit for hiring workers through an EOR in Italy?
Unlike in some other countries where there is a maximum time limit for staffing, in Italy, this limit does not exist. Or rather, the limit exists only for fixed-term contracts. Workers can be leased on a permanent basis.
Can a higher pension contribution be offered than that required by law?
Yes, this is possible. However, workers will also have to sacrifice a small percentage of their salary for this to happen.
Can workers be charged for the EOR service?
No, the law prohibits and penalizes the payment by workers for services offered by an employment agency (EOR).
Can a Dirigente be hired through an Employer of Record in Italy?
Absolutely yes. A Manager / Dirigente can be hired under a staff leasing contract and then assigned on a permanent basis to the client company.
Can a permanent employment contract through an EOR in Italy be terminated?
Yes, but in accordance with the law. The client who wants to terminate the employment contract must first terminate the service contract with the EOR provider. The EOR will then have the obligation to check the possibility of leasing the worker to another client. If this is not possible, the EOR must create and manage a specific training path lasting six months. At the end of this period, if the EOR has not found a new client to lease the worker to, it can proceed with termination, providing the appropriate notice.
What does the EOR service offered by Peoitaly include?
Hiring of employees: Employees are hired by Peoitaly in accordance with the current Italian labor laws, applying the appropriate CCNL (National Collective Labor Agreement). Peoitaly will handle the drafting of employment contracts according to the client’s needs and applicable laws. The client must review and approve the employment contracts before the employees are hired.
Staff Leasing: Along with being hired, employees are assigned to the client, who will assign them to the appropriate role and oversee their daily activities. The employees’ employment contracts must explicitly mention the name of the client to whom they are assigned.
Administrative management of the employment relationship: Administrative management, such as calculating and applying withholdings, payroll processing, expense reimbursement management, etc., is entirely managed by Peoitaly.
Provision of reporting: Every month, Peoitaly will provide the client with a detailed report not only of the payroll but also of the related labor costs, ensuring complete transparency.
How long does it take for Peoitaly to set this up?
As quickly as 24 – 48 hours provided our commercial terms are agreed upon.