Remote’s guide to employing in Italy.
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.
60,317,116 (2020 est.)
Ease of doing business
Cost of living index
$$$$ (29 of 139 nations)
VAT - standard rate
GDP - real growth rate
0.8583% (2018 est.)
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.
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.
|Saturday, January 1, 2022||New Year's Day|
|Thursday, January 6, 2022||Epiphany Day|
|Sunday, April 17, 2022||Easter Sunday|
|Monday, April 18, 2022||Easter Monday|
|Monday, April 25, 2022||Liberation Day|
|Sunday, May 1, 2022||International Worker Day|
|Thursday, June 2, 2022||Republic Day|
|Monday, August 15, 2022||Assumption Day,Ferragosto|
|Tuesday, August 16, 2022||Festività Commercio Milano||This is a festivity only in Milan, but it applies to all of Remote's Employees as the Remote Italy's legal entity is in Milan.|
|Tuesday, November 1, 2022||All Saints Day|
|Wednesday, December 7, 2022||Sant'Ambrogio||This is a festivity only in Milan, but it applies to all of Remote's Employees as the Remote Italy's legal entity is in Milan.|
|Thursday, December 8, 2022||Immaculate Conception|
|Sunday, December 25, 2022||Christmas Day|
|Monday, December 26, 2022||St Stephen's Day|
There is no statutory minimum wage in Italy, but national collective bargaining agreements set minimum wages on a sector-by-sector basis.
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.
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.
Besides providing your employees with all statutory benefits in Italy, Remote can advise on and arrange for custom benefits and perks for your employees upon request.
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Italy.
32% - Social Security
4% - IRAP Regional Tax and Bank Holidays
1.5% - INAIL (Injuries Insurance)
7.407% - TRF (Severance)
9.19% - 10.48% - Social Security
0% - Up to 15,000
27% - 15,000 - 28,000
38% - 28,000 - 55,000
41% - 55,000 - 75,000
43% - Above 75,000
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.
An employee is entitled to 5 months of full paid salary. Usually one month is taken off before the birth of the child and 4 months after. Expecting mothers are entitled to 6 weeks of pregnancy leave (before the due date) and at least 8 weeks maternity leave (after childbirth). Fathers are obligated to take 7 days of paid paternity leave within five months of the child being born and can take a further day in place of the mother.
In addition to maternity and paternity leave, the parents can take extended unpaid parental leave for up to 10 months. For a mother this can be up to 6 months in addition to the maternity leave, and
Italian employers can in general terminate an employment contract in the following ways:
Notice periods are decided on and governed by collective bargaining agreements.
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.