Make employment in Italy easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Italy, all in one easy-to-use platform.
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.
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Want to employ workers in Italy? Companies hiring in Italy are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Italy and keep you compliant. Remote can hire, onboard, and pay your Italy team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Italy. Sign up now to get started or talk to an expert for more details.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Italy. Note that your employees may be liable for additional local taxes.
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0.00% - 10.48%
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15,000 - 28,000
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28,000 - 50,000
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In Italy there are 3 different types of leave that falls in the category annual leave: - Vacation (Ferie) - 22 days for 5 days a week workers, 26 for 6 days a week workers - Working time reduction hourly permit (ROL) - 36 hours a year (after first 2 years), to be used in groups of 4 or 8 hours - Ex Festivita’ hourly permit - 32 hours a year, to be used in groups of 4 or 8 hours (in place of the 4 holidays abolished by law 40 years ago)
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.
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.
- 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. - Leave for women victims of violence: The renewed Collective Bargaining Agreement (CBA) in Italy, effective from April 1, 2024, introduces a leave regulation for women victims of violence. This provision, aligning with article 24 of Legislative Decree no. 80 of 15 June 2015, grants workers the right to abstain from work for a maximum of 90 working days if they are included in certified protection courses related to gender violence. The leave, which can be taken on an hourly or daily basis over three years, entitles the worker to an allowance equivalent to her final salary, advanced by the employer and adjusted against the contributions due to INPS in the same way as for maternity benefits.
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; or
Ordinary dismissal with notice based a subjective reason, involving breaches of of the employee's legal and contractual duties
Except for fixed term contracts, notice periods are decided on and governed by collective bargaining agreements and vary with period of service.
Upon termination of the employment relationship, the employee receives the so called TFR (Trattamento di fine rapporto), which is a part of workers' wages whose payment is deferred upon termination of the employment relationship. The employee can choose to receive it at the end of the employment or have it monthly deducted to a personal pension fund.
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.
At Remote, we provide tailored benefits to ensure that all Remote employees receive comprehensive coverage from top providers. Our plans offer competitive rates designed for larger groups - even if the team is still growing!
Upon onboarding, Remote will enroll team members in their benefits and provide detailed information about their coverage. Remote manages all administrative tasks, allowing you to focus on scaling your global team.
To ensure benefit equality, any benefits offered will apply to all team members in the country, providing consistent coverage and support across the team.
Italy has a strong economy with key industries in automotive, fashion, and manufacturing. With specific labor laws and tax regulations, employers in Italy must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.
Employers in Italy must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:
Minimum wage: Italy does not have a statutory minimum wage; wages are determined by collective agreements.
Payroll frequency: Salaries are generally paid monthly.
Standard working hours: The normal workweek in Italy is 40 hours, typically spread over five days.
Overtime: Employees are entitled to additional pay for overtime work, calculated at 125% of the regular wage for extra hours and 150% for work on public holidays.
Personal income tax: Italy has a progressive income tax system with rates ranging from 23% to 43% depending on income levels.
Employer contributions:
Employee contributions:
Corporate tax: The corporate income tax rate in Italy is 24%.
Tax reporting: Employers must file payroll taxes and contributions with the Italian Revenue Agency regularly.
Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
Employers must stay updated on changes to Italy’s labor laws and tax regulations to avoid penalties.
Managing payroll in Italy requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.
Hiring contractors in Italy can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or working with subcontractors for various projects, understanding Italy’s labor laws and regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support: Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection: Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation: Maintains essential records for audits and automates tax filings.
Legal expertise: Provides guidance on complex local labor laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Automated processing: One-click approvals, bulk payments, recurring invoices, and real-time tracking.
Global coverage: Payments in 200+ countries, multiple payment methods, and currency flexibility.
Cost and compliance: Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in Italy — get started for free today.
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Italy with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in Italy without having to set up a local legal entity. On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities. Learn more.
An EOR may be ideal if your company:
Needs to hire employees in Italy but doesn’t want to establish a legal entity
Is testing local markets before committing to a full business expansion
Wants to ensure full compliance with local employment laws and tax requirements
Needs a fast, cost-effective way to onboard employees in Italy
Needs a temporary hiring solution before establishing a legal entity
If your company wants to hire talent in Italy but doesn't have a legal entity there, our EOR provides a fully compliant and efficient solution. Italy has strict employment and payroll tax laws, and our EOR service ensures you meet these legal obligations while enabling you to grow quickly.
Key benefits of hiring through our EOR in Italy include:
Faster market entry. You can hire talent quickly, without having to wait months to establish a local entity.
Full compliance with local employment laws. Avoid the legal risks associated with non-compliance and misclassification.
Simplified payroll management. We automate payroll tax calculations and ensure you are fully compliant with all withholding obligations, even when laws change.
Lower costs. Setting up a legal entity in Italy can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.
Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.
It’s also crucial to note that, at Remote, we own our own legal entity in Italy. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.
To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.
The grant is not addressed Equity incentives are an invaluable way to attract, motivate, and retain top talent for your business. But when you cross hiring borders, they can become deeply complex.
Remote enables you to easily offer non-qualified stock options (NSOs) to your team members in Italy. There are no compliance headaches or administrative hassles — just simplicity and clarity for you and your people at every step.
NSOs are a type of equity incentive. They give your team members the right to buy a set number of shares in your company at a fixed price, known as the exercise price.
This typically happens after a vesting period, which is often based on the length of time your team member stays at your company. As a result, they are a great way to foster long-term commitment, and align people with your company’s strategic goals.
Direct employees | EOR employees | Contractors | |
Can receive NSOs? | Yes | Yes | Yes |
Difficulty score | Medium | Medium | Medium |
It’s important to note that granting stock options to contractors can potentially increase your misclassification risk in Italy (although this is not the primary factor). See how Remote protects you against misclassification.
In Italy, NSOs are taxed in the following ways:
Direct employees | EOR employees | Contractors | |
At grant | There is no taxation at grant. | There is no taxation at grant. | There is no taxation at grant. |
At exercise | The spread is usually taxed as salary income. The spread is the difference between the fair market value of the shares at the time of exercise, and the exercise price (or “strike” price) paid by your team member. | The spread is usually taxed as salary income. The spread is the difference between the fair market value of the shares at the time of exercise, and the exercise price (or “strike” price) paid by your team member. | The spread is usually taxed as salary income. The spread is the difference between the fair market value of the shares at the time of exercise, and the exercise price (or “strike” price) paid by your team member. |
After exercise | Your team member must pay wealth tax on the owned shares. | Your team member must pay wealth tax on the owned shares. | Your team member must pay wealth tax on the owned shares. |
At sale | The difference between the sale price and the fair market value of the shares (at the time of exercise) are subject to capital gains tax. | The difference between the sale price and the fair market value of the shares (at the time of exercise) are subject to capital gains tax. | The difference between the sale price and the fair market value of the shares (at the time of exercise) are subject to capital gains tax. |
Direct employees | EOR employees | Contractors |
There are possible tax benefits if: The grant is not addressed to all your employees and EOR employees, but only to some employees (or categories of employees). The grant is conditional (e.g., based upon completion of a vesting period, the maintenance of the working relationship up to a certain date, or achievement of specific business results). The grant relates only to shares, with no mention of cash payments. | There are possible tax benefits if: The grant is not addressed to all your employees and EOR employees, but only to some employees (or categories of employees). The grant is conditional (e.g., based upon completion of a vesting period, the maintenance of the working relationship up to a certain date, or achievement of specific business results). The grant relates only to shares, with no mention of cash payments. | There is no tax-favored scheme unless the employee is new to the country, in which case only 30% of your team member’s professional income would be subject to tax. |
If you want to use Remote Equity Advanced to offer stock options to your Italy-based team members, your top corporation (i.e., your parent company) must be incorporated in Delaware. Your company must also be private — not publicly listed.
$699
per employee/month
Hire without opening a local entity in 90+ countries
Onboarding with a dedicated specialist
Local payroll paid on time, every time
Compliance protections built-in
Competitive, flexible and localized benefits
Dedicated in-house experts for local support
Includes HR Essentials as standard
$29
per employee/month
Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated benefits management
Includes HR Core as standard
$29
per contractor/month
Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Includes HR Core as standard
