Hire employees in Italy. No entity needed.
Usually, to hire in Italy, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Italy also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Italy quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Italy
built right in
Deel allows you to provide localized benefits for employees in Italy within minutes. All in one manageable online dashboard.
- Public Health Insurance
- Unemployment Insurance
- Worker Compensation Accident Insurance
- Private Healthcare - Unisure (optional)
Our quickstart guide to hiring in Italy
Navigate the tabs below to learn everything you need to know about hiring an employee in Italy
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 0% to 43%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
|Gross Annual Income||Tax Rate (%)|
|Up to EUR 15,000||23%|
|Up to EUR - 28,000||27%|
|Up to EUR - 55,000||38%|
|Up to EUR - 75,000||41%|
|Over EUR - 75,000||43%|
The employer cost is generally estimated at 38% of the employee salary. For employees classified in the Dirigente category, an additional estimated EUR 1,341.84 must be paid.
- Social Security - 23.81%
- Family Allowances - 0.68%
- General Fund - 1%
- Sickness Benefit 2.44%
- Maternity - 0.24%
- TFR Funds 7.40%
- TFR Guarantee Contribution - 0.20%
- Employment Insurance - 1.61%
- Injuries at Work Insurance - 0.40%
Additional employer costs for Dirigente employees
- Dirigente - Fondo Mario Negri - 12.86%
- Dirigente - Fondo Mario Negri - supplementary - 2.31%
- Dirigente - Fondo Mario Besusso - 5.51%
- Dirigente - Fondo Pastore EUR 358
- Dirigente - Tertiary Management Training Fund EUR 24
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 250 hours of overtime per year. For additional hours, employees are paid:
- 150% of the hourly rate, the first 8 hours.
- 200% of the hourly rate, the following hours.
- 150% of the hourly rate for overtime night work excluding regular duty shifts (from 10 pm to 6 am)
- 130% of the hourly rate, on holidays and Sundays.
Dirigente employees are not entitled to overtime pay.
The employee can’t extend maternity leave but can take parental leave.
The employee can’t extend paternity leave but can take parental leave.
Either parent can take parental leave. Social Security (INPS) will pay 30% of the salary during this period.
Parental leave can't be extended.
Employees are entitled to paid sick leave for up to 180 days. This leave is paid at different rates and by different payers depending upon length:
|0 - 3 days||100% of base salary||Employer|
|4 - 180 days||70% of base salary||Social Security|
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Italy can be complex. In exceptional cases, there is at-will termination in Italy for employers outside the probation period and generally, the termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Without cause (exceptional cases)
- By the expiration of the contract
The minimum notice period is 30 days and will be increased according to the length of the employment, category of the employee, and type of termination.
Termination by the employee - executive managerial positions (Quadri and Level I)
- 45 days if the length of service is up to 5 years
- 60 days if the length of service is more than 5 years and up to 10 years
- 90 days if the length of service is more than 10 years
Termination by the employee
- 20 days if the length of service is up to 5 years
- 30 days if the length of service is more than 5 years and up to 10 years
- 40 days if the length of service is more than 10 years
Termination by the employer - executive managerial positions (Quadri and Level I)
- 60 days if the length of service is up to 5 years
- 90 days if the length of service is more than 5 years and up to 10 years
- 120 days if the length of service is more than 10 years
Termination by the employer
- 30 days if the length of service is up to 5 years
- 45 days if the length of service is more than 5 years and up to 10 years
- 60 days if the length of service is more than 10 years
Severance for Employees
Hence, it cannot be considered proper severance pay, since it is constituted by a certain amount of salary set aside each month.
The TFR is calculated according to the formula of a year's overall salary divided by 13.5, plus 1.5% for each year of service plus compensation for inflation.
The TFR must be paid to the worker in any case of termination of the employment relationship.
Paid Time Off
PTO for part-time employees will be calculated according to the weekly working hours.
Italy celebrates both 12 national and 10 regional holidays based on the location of the employee.
National public holidays include:
- New Year's Day
- Easter Sunday
- Easter Monday
- Liberation Day
- Labor Day
- Republic Day
- Assumption of Mary
- All Saints' Day
- Feast of the Immaculate Conception
- Christmas Day
- St. Stephen's Day
Employment Contract Details
Contracts must be in Italian and can be bilingual. To prepare the employment agreement, the employee will have to provide information about their previous employment to select the classification that can be dirigenti, quadri, or impiegato. They must be in writing and signed by both parties.
A contract must include:
- Start date
- Length of the employment
- Job description
- Category of the employee
- Termination conditions
Hiring in Italy, hassle-free
With Deel, your business can easily hire employees in Italy. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
Estimate Employer Cost
*of employee salary
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