How to Hire Employees in Italy using an Employer of Record?
Learn all you need about hiring employees in Italy, laws, payroll and employer of records.
Quick Facts About Italy
About Italy
Italy's rich economic landscape, deeply integrated within the European Union's single market, offers businesses a strategic platform for accessing both established Western European markets and emerging opportunities across the Mediterranean region. As the Eurozone's third-largest economy, Italy combines a sophisticated industrial base, renowned design and manufacturing expertise, and a highly skilled workforce. While the country presents compelling opportunities with its large consumer market and strong export orientation, establishing operations requires careful navigation of its comprehensive labor laws, multi-layered regulatory framework, and distinct regional business environments. Companies must thoroughly understand both national requirements and local nuances when setting up operations, from managing complex employment regulations to ensuring compliance with Italy's detailed social security and benefits systems.
Why use an EOR in Italy?
Setting up a legal entity in Italy can be complex and time-consuming, typically taking between 60 to 120 days and requiring a minimum capital of 50,000 EUR. Using an Employer of Record (EOR) allows you to start hiring immediately while ensuring full compliance with local labor laws and regulations.
Local Entity Setup
60-120 days
50,000 EUR
1000 USD
Using an EOR
1-2 days
$0
$299-599
Per employee, includes all services
Employment Basics
Key requirements and regulations for hiring employees in Italy.
Contract Requirements
Written employment contracts are mandatory in Italy.
The employment contract must include the following provisions:
- Job duties
- Work location
- Start date
- Salary
- Working hours
- Leave entitlements
- Foreign Worker Documentation: Work permit, residency permit, social security number
Working Hours
Standard working hours in Italy are 13 hours per day and 48 hours per week.
Overtime is limited to 20 hours, and must be compensated at 1x the regular hourly rate.
Probation Period
A probation period is mandatory in Italy and can last up to 6 months.
Termination Requirements
Notice Period: 15-180 days (varies by job level and tenure)
Severance Pay: Approximately 1 month's salary per year of service
Employers must provide valid grounds for termination.
Required documentation for termination:
- Written termination letter with specific reasons
Compensation
Mandatory compensation requirements in Italy.
Minimum Wage
The minimum wage is 0 EUR per monthly.
Special Pay Requirements
13th Month Pay: Required
Required Allowances:
- Transport allowance common (€100-200 monthly)
Required Bonuses:
- Holiday work: Regular rate plus 10%
- Night shift: 15% premium (10 PM to 6 AM)
Tax Structure
Tax obligations and reporting requirements for employers in Italy.
income tax
| Income Range | Tax Rate |
|---|---|
| 0 - 28,000 | 23% |
| 28,001 - 55,000 | 33% |
| 55,001 - Above | 43% |
Employee Benefits
Italy provides a comprehensive benefits package for employees that includes both mandatory and optional benefits. These benefits are designed to ensure employee welfare and comply with local regulations.
Mandatory Benefits
Non-Mandatory Benefits
Leave Policies
Statutory leave entitlements for employees in Italy.
Annual Leave
Employees are entitled to 20 days of annual leave per year, paid at 100% of their regular salary.
Sick Leave
Employees are entitled to 180 days of sick leave per year, paid at 100% of their regular salary.
Parental Leave
Employees are entitled to 100 days of parental leave per year, paid at 100% of their regular salary.
Paternity Leave
Employees are entitled to 10 days of paternity leave per year, paid at 100% of their regular salary.
Marriage Leave
Employees are entitled to 15 days of marriage leave per year, paid at 100% of their regular salary.
Bereavement Leave
Employees are entitled to 3 days of bereavement leave per year, paid at 100% of their regular salary.
Public Holidays
Italy observes 11 public holidays throughout the year. Most holidays are paid at 100% of regular salary.
| Date | Holiday | Status |
|---|---|---|
| January 1 | New Year's Day | Mandatory |
| January 6 | Epiphany | Mandatory |
| April 21 | Easter Monday | Mandatory |
| April 25 | Liberation Day | Mandatory |
| May 1 | Labor Day | Mandatory |
| June 2 | Republic Day | Mandatory |
| August 16 | Assumption Day | Mandatory |
| November 1 | All Saints' Day | Mandatory |
| December 8 | Immaculate Conception | Mandatory |
| December 25 | Christmas Day | Mandatory |
| December 26 | St. Stephen's Day | Mandatory |
Choosing an Employer of Record in Italy
Key considerations and recommendations for selecting an EOR provider in Italy.
What to Look for in an EOR Provider
When selecting an Employer of Record in Italy, consider these key factors:
- Local expertise and presence in Italy
- Compliance track record and regulatory knowledge
- Transparent pricing and fee structure
- Quality of customer support and response times
- Technology platform and integration capabilities
- Employee experience and onboarding process
Common Pitfalls to Avoid
Be aware of these potential issues when choosing an EOR provider:
- Hidden fees and unclear pricing structures
- Limited local market knowledge or presence
- Poor communication and support responsiveness
- Outdated technology and manual processes
- Lack of compliance guarantees
Recommended EOR Providers
To help you make an informed decision, we've created a comprehensive comparison of the best Employer of Record (EOR) providers in Italy. Our analysis includes detailed pricing information, feature comparisons, and real customer reviews.