Hire and pay employees 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.

The average onboarding time frame in Italy is 3 days with Deel.

Currency

Euro EUR

Capital

Rome

Official Language

Italian

Payroll Cycle

Monthly

Onboard, pay and manage employees in Italy with Deel.

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.

Deel lets you hire employees in Italy quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

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)
  • Private Healthcare - Allianz (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

In Italy, there is no minimum wage by law. 

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%

Payroll Cost

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.Hiring Quadro employees will result in additional mandatory costs: one-off €340 and up to €350/year (prorated based on the months of employment in the calendar year) for QuAS - Cassa Assistenza Sanitaria, and a €50/year Quadrifor contribution.

  • Social Security - 23.81%
  • National Sickness Benefits Contribution - 2.44%
  • National Maternity Benefits Contribution - 0.24%
  • Termination Severance Funds (TFR) - 6.91%
  • Termination Severance Fund (TFR) Guarantee Contribution - 0.20%
  • Unemployment Insurance - 1.61%
  • Work Accident Insurance (INAIL) - 0.40%
  • Subsidized Furlough Fund (FIS) - 0.53%
  • Subsidized Furlough Fund (CIGS) - 0.60%
  • Family Allowance (CUAF) - 0.68%
  • 13th Salary - 8.33%
  • 14th Salary - 8.33%

Please note: 13th and 14th salary are paid monthly and included in the employee’s gross annual salary.

One-off Costs
  • Onboarding Medical Check - EUR 119
  • Health&Safety Training - EUR 42
  • Upon request, the Health and Safety training can be conducted in English. If required, an additional fee of EUR 12 will apply.

Additional Costs For Dirigente Employees
  • Private Pension - Fondo Mario Negri - EUR 634.70
  • Supplementary Private Pension - Fondo Mario Negri - EUR 132.76
  • Supplementary Health Insurance - Fondo Mario Besusso - 5.81% + 2.56% of 3,828.33
  • Private Pension - Fondo Pastore - EUR 358
  • Tertiary Management Training Fund - EUR 24

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

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:

  • 115% of the hourly rate, the first 8 hours.
    120% 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.

Maternity Leave

Pregnant employees are entitled to five months of paid leave. 60 days must be taken before the child's birth. The employee will receive 100% of the salary during this period, 80% paid by Social Security and 20% by the employer.

The employee can’t extend maternity leave but can take parental leave.

Paternity Leave

Employees are entitled to 7 days of paid paternity leave since the birth date. The employee will receive full salary during this period, and Social Security will be responsible for this pay. 

The employee can’t extend paternity leave but can take parental leave.

Parental Leave

Employees are entitled to 11 months of parental leave, which can be taken until the child reaches 12. Both parents can decide how to distribute the time off, which should be taken after paternity and maternity 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.

Sick Leave

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:

Period Pay Payer
0 - 3 days 100% of base salary Employer
4 - 20 days 75% of base salary

50% Social Security 25% Employer

21 - 180 days 100% of base salary

66% Social Securit 33.3% Employer

 

 

Termination Requirements

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

Notice Period

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

In Italy, there is no severance pay or redundancy compensation as such. However, upon the 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 the termination of the employment relationship.

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.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

Full-time employees are entitled to 20 working days of paid time off (PTO) a year. PTO accrues monthly at 1.67 days per month. Employees are allowed to take at least 10 working days in a row. 

PTO for part-time employees will be calculated according to the weekly working hours.

Public Holidays

Italy celebrates both 12 national and 10 regional holidays based on the location of the employee.

National public holidays include:

  • New Year's Day
  • Epiphany
  • 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

Onboarding

3 business days after MSA signature & deposit payment.

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:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Category of the employee
  • Termination conditions

Probation Period

Probation periods are not mandatory. There is no minimum probation period. The maximum probation period is 180 days (6 months). 
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Hiring in Italy, hassle-free

With Deel, your business can easily hire employees in Italy with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Italy and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)

38%

Estimate Employer Cost

*of employee salary

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