Country ExplorerItaly

Easily manage employment in Italy

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-employment-guide.webp

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

Rome

Official language

Italian

Currency

Euro

Population

60317116

Cost of living index

29 of 139 nations

GDP real growth rate

0.86%

Payroll frequency

Monthly

VAT rate

22%

Ease of doing business

Very easy

Grow your team in Italy with Remote

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.

Sign up for free

Taxes in Italy

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.

Employer

0.00%

Social Security

0.0%

INAIL (Injuries Insurance)

Employee

0.00% - 10.48%

Social Security

0%

Up to 15,000

0%

15,000 - 28,000

0%

28,000 - 50,000

0%

Above 50,000

Remote Benefits Plans

At Remote, we provide tailored benefits to ensure that all Remote employees receive comprehensive coverage from top providers.

Payroll services in Italy

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.

Payroll breakdown in Italy

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 and working hours

  • 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.

Taxation and social security contributions

  • 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.

Payroll compliance in Italy

  • 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.

Run payroll in Italy with Remote

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.

Contractor management in Italy

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.

Staying compliant with Remote’s contractor management

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.

Seamless contractor payments with Remote

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.

Employer of record in Italy

Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Italy with speed and simplicity.

What is an EOR — and how does it work?

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.

Who should consider using an EOR in Italy?

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

Why use Remote’s EOR in Italy?

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.

Transparent Pricing in Italy

  • USD
  • EUR
  • GBP
  • CAD
  • AUD
  • NZD
  • SGD
  • CHF
  • JPY
  • SEK
  • NOK
  • DKK

Employer of Record

A$1,069

per employee, per month

  • Employ staff in 90+ countries without setting up a local entity

  • Onboarding managed by a dedicated specialist

  • Local payroll processed on time, every time

  • Built-in compliance protections

  • Localised, competitive and flexible benefits

  • In-house experts dedicated to local support

  • HR Essentials included as standard

Payroll

A$43

per employee, per month

  • Robust, transparent global payroll

  • Easy self-serve platform

  • Tailored assistance from dedicated specialists

  • Comply with local payroll regulations in every country

  • Centralised benefits management

  • HR Core included as standard

Contractor management

A$44

per contractor, per month

  • Pay only for contractors you are actively engaging with

  • Engage with contractors based overseas

  • Draft, modify and sign customised, localised contracts

  • Approve contractor invoices in one click or set them to auto-pay

  • Transparent payments with end-to-end visibility

  • HR Core is included as standard