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.
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.
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.
|Date||Holiday Name||Extra information|
|New Year's Day|
|The Feast of Saint Mark||Only observed in Venice|
|Labour Day/May Day|
|The Feast of Saint John||Only observed in Florence, Genoa, Turin|
|The Feast of Saint Peter and Saint Paul||Only observed in Rome|
|The Feast of Saint Januarius||Only observed in Naples|
|All Saints Day|
|The Feast of Saint Ambrose||Only observed in Milan|
|Saint 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, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Italy fast. The minimum onboarding time we need is only 72 hours.
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
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.
Taxes in Italy
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Italy.
- 29% - 32% - Social Security
- 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
Types of 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
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
- 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.
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 periods are decided on and governed by collective bargaining agreements.
The statutory probationary periods are 3 months for employees not assigned to management functions and 6 months for all other employees. Applicable probation periods are usually mentioned in the national collective bargaining agreement the employer is under.