It is the world’s ninth largest economy. Italy is a country in south central Europe, occupying a peninsula that is just deep into the Mediterranean Sea. Hosting some of the most varied and scenic landscapes on Earth, Italy is often described as a country shaped like a boot. Art, music, style, and iconic food are the most famous elements of Italian culture. Though not a state religion, Roman Catholicism is the most popular religion in Italy. The Constitution also states that “all citizens have equal dignity and are equal before the law without distinction of sex, race, language, and religion”.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Italy.
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Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Italy
Calculate net salary post deductions and compare it with the salary in other countries instantly.
Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Italy
Easily onboard your remote talent in Italy through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
It is the world’s ninth largest economy. Italy is a country in south central Europe, occupying a peninsula that is just deep into the Mediterranean Sea. Hosting some of the most varied and scenic landscapes on Earth, Italy is often described as a country shaped like a boot. Art, music, style, and iconic food are the most famous elements of Italian culture. Though not a state religion, Roman Catholicism is the most popular religion in Italy. The Constitution also states that “all citizens have equal dignity and are equal before the law without distinction of sex, race, language, and religion”.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Italy.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Italy planning:
The national holidays mentioned below are valid for the year 2026.
There are approximately 11 public holidays in Italy. The major cities observe an additional regional holiday on the feast day of their patron saint. Sundays are also considered to be public holidays.
| January 1 | New Year's Day | |
| January 6 | Epiphany | |
| April 5 | Easter Sunday | Movable |
| April 6 | Easter Monday | Movable |
| April 25 | Liberation Day | |
| May 1 | Labor Day | |
| June 2 | Republic Day | |
| August 15 | Assumption of Mary | |
| November 1 | All Saints’ Day | |
| December 8 | Feast of the Immaculate Conception | |
| December 25 | Christmas Day | |
| December 26 | St Stephen’s Day (Giorno di Santo Stefano) |
The approximate time for sharing the contract with an employee in Italy is 2 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Employers with 15 or more employees are required to employ at least one person living with serious disabilities.
In Italy, employers are obliged to ensure that employees have access to medical examination of health (pre-hiring, preventive, periodic) and examination of sight
Employees in Italy are classified into four different groups; Executives (“Dirigente”), Middle managers (“Quadro”), White-collar employees (“Impiegati”), and Blue-collar employees (“Operai”). Collective bargaining agreements and corporate norms, in relation to the structure of the company, determine the requirements for belonging to the indicated categories.
Non-compliance by the employer with dismissal regulations results in huge compensation payments.
Through our Employer of Record Italy platform, businesses can easily remain compliant with all these regulations while they hire contractors in Italy or hiring employees in Italy without establishing a local entity.
The Italian social security system is funded by contributions paid by employed workers, employers, independent workers, self-employed workers, as well as through general taxation.
|
Benefits |
Employer Contribution |
Employee Contribution |
Monthly Salary Cap |
|---|---|---|---|
|
Injuries at Work Insurance (INAIL) |
0.28% |
– |
|
|
TFR (Trattamento di fine rapporto) |
7.407% of the monthly salary |
– |
|
|
Social Security (Invalidity, Old Age, or Survivors) |
31.58% |
9.19%* |
€8,545 |
|
Medical Check-Up |
27 EUR |
|
|
|
Private Health Insurance |
10 EUR |
2 EUR |
For 2024, there is a total decontribution up to a maximum of €3,000 per year for working mothers with two children up to the month of the youngest child’s 10th birthday.
Working hours are generally 40 hours per week, not necessarily calculated on the basis of a set working week but for each seven-day period.
Employees are entitled to various types of leave in Italy, including paid annual leave, maternity and paternity leave, and sick leave. Working hours, rest time, and overtime limits apply as outlined in the previous sections.
Any work performed in excess of 40 hours per week constitutes overtime. Whether or not a contract has been signed, the number of overtime hours must not exceed eight hours weekly or 250 hours per year. The 48-hour limit is calculated over a seven-day period within a time period of no more than four months. Overtime is paid at a rate that is 15% more than actual full hourly pay.
The maximum term for probationary periods is six months. The actual length of time for the probation period is usually fixed by the Collective Bargaining Agreements (CBAs).
A written notice has to be served to the employee with detailed reasons for dismissal. The relevant notice period required to dismiss an employee for either a subjective or objective reason is set out in the applicable CBA, based on the employee’s length of service, position, and level.
Working hours are generally 40 hours per week, not necessarily calculated on the basis of a set working week but for each seven-day period.
Employees are entitled to various types of leave in Italy, including paid annual leave, maternity and paternity leave, and sick leave. Working hours, rest time, and overtime limits apply as outlined in the previous sections.
Any work performed in excess of 40 hours per week constitutes overtime. Whether or not a contract has been signed, the number of overtime hours must not exceed eight hours weekly or 250 hours per year. The 48-hour limit is calculated over a seven-day period within a time period of no more than four months. Overtime is paid at a rate that is 15% more than actual full hourly pay.
The maximum term for probationary periods is six months. The actual length of time for the probation period is usually fixed by the Collective Bargaining Agreements (CBAs).
A written notice has to be served to the employee with detailed reasons for dismissal. The relevant notice period required to dismiss an employee for either a subjective or objective reason is set out in the applicable CBA, based on the employee’s length of service, position, and level.
The Italian social security system is funded by contributions paid by employed workers, employers, independent workers, self-employed workers, as well as through general taxation.
|
Benefits |
Employer Contribution |
Employee Contribution |
Monthly Salary Cap |
|---|---|---|---|
|
Injuries at Work Insurance (INAIL) |
0.28% |
– |
|
|
TFR (Trattamento di fine rapporto) |
7.407% of the monthly salary |
– |
|
|
Social Security (Invalidity, Old Age, or Survivors) |
31.58% |
9.19%* |
€8,545 |
|
Medical Check-Up |
27 EUR |
|
|
|
Private Health Insurance |
10 EUR |
2 EUR |
For 2024, there is a total decontribution up to a maximum of €3,000 per year for working mothers with two children up to the month of the youngest child’s 10th birthday.
WorkMotion operates through its own entity in Italy, acting as the legal employer.
This means your company can hire compliantly without registering a local subsidiary or directly navigating Italian labour authorities.
WorkMotion generates a written employment contract in Italian that is aligned with the applicable Contratto Collettivo Nazionale di Lavoro (CCNL).
Contracts must be written in Italian and include the employee’s:
WorkMotion determines the correct CCNL for each role and builds the contract accordingly — including probation terms, statutory benefits, and any sector-specific entitlements — so you don’t need to source Italian employment counsel before making your first hire.
Before recruitment — no later than the day before the start date — the employer must submit a mandatory telematic notice to the job center in the area where its headquarters are located.
This notice is also recognized by the inspection offices of:
This UniLav communication is filed on your behalf as part of the standard onboarding process. Missing or late submission is a compliance violation and is one of the first places foreign employers without local support run into problems.
INPS is responsible for pension contributions, maternity and sick leave, and other social security benefits. Employers must register with INPS before onboarding staff.
INAIL manages workplace accident insurance and is a mandatory part of the employment setup in Italy.
WorkMotion handles both registrations through its own Italian entity, ensuring your employee is enrolled in the correct social security and workplace insurance schemes from day one — with the right INAIL risk classification for their role.
WorkMotion configures payroll in euros, applying:
Employees are entitled to the 13th-month salary (tredicesima) in December and, in many industries, to a 14th-month salary (quattordicesima) in June or July, depending on the applicable CCNL.
WorkMotion calculates and administers both, and accrues the mandatory Trattamento di Fine Rapporto (TFR) — Italy’s statutory severance fund — throughout the employment relationship.
Unsure how much your first hire in Italy may cost? Use our employment cost calculator to get a clearer picture of how much using an EOR in Italy will cost you.
TFR is a mandatory severance fund that accrues throughout the employment relationship at approximately 6.91% of annual gross salary.
It is payable upon termination regardless of the reason, including resignation and retirement.
WorkMotion tracks TFR accrual on a monthly basis, manages any supplementary pension fund enrollment required under the applicable CCNL, and administers statutory leave entitlements, including at least four weeks of paid annual leave and 12 public holidays.
Social security contributions must be paid to INPS monthly.
The due date is the 16th day of the month following the payroll run. Late payments are subject to financial penalties.
WorkMotion processes monthly payroll, remits all contributions to INPS and INAIL on schedule, files the mandatory UniEmens report with INPS, and issues compliant Italian payslips to employees.
When Italian labour law or CCNL terms change — as they do regularly — WorkMotion’s local legal and compliance team updates employment terms automatically, so your company’s exposure doesn’t grow quietly in the background.
For most companies hiring one to ten employees in Italy, the choice between an EOR and a local entity comes down to speed, cost, and how long you plan to stay.
| Factor | WorkMotion EOR | Italy Entity Setup |
|---|---|---|
| Setup cost | No setup cost beyond the per-employee EOR fee | Legal, notary, and registration fees typically range from several thousand to tens of thousands of euros, depending on the structure and professional services required |
| Time to first hire | Days from signed contract to payroll enrollment | Entity setup in Italy typically takes 4–6 months from initial registration to the first payroll run, depending on the legal form and the municipality’s processing times |
| Ongoing legal exposure | WorkMotion carries employment liability as the legal employer; your company manages the work | Your company is directly liable for all labour law compliance, CCNL obligations, INPS/INAIL filings, and termination procedures |
| Ongoing admin burden | WorkMotion handles payroll, filings, TFR accruals, CCNL updates, and statutory reporting | Monthly INPS/INAIL filings, annual tax declarations, CCNL monitoring, payroll processing, and statutory audit obligations (for larger companies) |
| Exit flexibility | Scale down or exit without entity dissolution costs or procedures | Closing an Italian entity requires formal liquidation — a time-consuming and legally complex process |
EOR fits companies that need to hire in Italy quickly, are testing the market with a small team, or want to avoid the overhead of running a permanent local entity.
Entity setup is worth evaluating when you’re building a large, permanent Italian team and the ongoing EOR fees exceed the cost of running your own structure.
WorkMotion also offers a Direct Hiring solution in Europe — so if you reach that point, you can transition to direct employment without switching providers.
Italy’s employment framework is detailed, employee-protective, and shaped by sector-specific rules that don’t exist in most other markets.
These are the compliance gaps that catch foreign employers off guard.
Italy does not have a statutory national minimum wage. Minimum pay levels are set by the applicable CCNL for each sector and are legally binding for all employers operating in that industry, whether or not they participated in the collective bargaining process.
Foreign employers sometimes assume a salary above market rate is sufficient. This isn’t true.
The correct CCNL must be identified, cited in the contract, and applied across pay, working hours, notice periods, and benefits.
Getting the CCNL wrong affects the entire employment relationship, not just the salary line. WorkMotion determines the applicable agreement for each role before drafting the contract.
CFOs who budget on gross salary alone will face unpleasant surprises.
Italian employment cost includes:
The total employer cost in Italy regularly runs 35–45% above gross salary before any EOR service fee. WorkMotion provides a transparent pricing structure before you commit, so finance teams can forecast accurately.
Before recruitment, the employer must submit a mandatory telematic notice to the job center no later than the day before the employee’s start date.
This UniLav filing is not a post-hire formality — it must be submitted before the employment relationship begins.
Foreign companies managing their first Italian hire without local support frequently miss this deadline, triggering fines and inspection risk. WorkMotion files the UniLav as a standard step in every onboarding.
Severance pay (TFR) is mandatory in Italy and accrues throughout an employee’s tenure, posing a substantial cost for employers, especially for long-serving staff.
Unlike a one-time termination payment in other markets, TFR builds continuously from day one and is payable regardless of how the employment ends — including resignation.
Companies that don’t account for TFR in their employment cost model are consistently surprised at offboarding.
Terminating a permanent employment contract is highly regulated. Lawful dismissal requires just cause (giusta causa), justified objective reason (giustificato motivo oggettivo), or justified subjective reason (giustificato motivo soggettivo).
Unfair dismissal claims can result in reinstatement orders or substantial compensation — up to 24–36 months’ salary, depending on the company’s size and tenure.
Italian law introduced the obligation to use an organizational or production reason if a fixed-term contract’s duration exceeds 12 months, for a maximum of 24 months.
Companies that default to fixed-term contracts to avoid the obligations of permanent employment often find that Italian courts reclassify the relationship as indefinite, triggering retroactive entitlements and potential fines.
WorkMotion advises on contract changes for each hire and monitors regulatory changes that affect fixed-term arrangements.
A B2B SaaS company headquartered in Berlin or Amsterdam wants to hire a country manager or sales lead in Milan to open the Italian market.
Setting up an Italian S.r.l. for one hire isn’t viable – the timeline alone would cost them the candidate.
WorkMotion’s own Italian entity means the contract is ready within days, payroll runs in euros, and the new hire has a legally sound employment relationship from their first day. This is one of the most common hiring corridors WorkMotion serves.
Post-Brexit, UK companies can no longer rely on freedom of movement to build European teams. Italy’s technology sector — particularly in Milan, Rome, and Turin — offers strong engineering and product talent.
A UK fintech or software company hiring a backend developer or data engineer in Italy needs an EOR who understands both Italian labour law and cross-border employment structures. WorkMotion handles the Italian employment layer while the company retains full day-to-day management of the work.
A 50–200-person company operating fully remotely wants to hire wherever the best candidates are. Italy consistently produces strong talent in engineering, design, and commercial roles.
Rather than restricting hiring to countries where they already have entities, these companies use WorkMotion’s EOR to onboard Italian employees compliantly alongside hires in Spain, Poland, or Portugal — managed through a single platform.
Italy has the talent, the market, and the strategic position to make it a strong hire for almost any European expansion plan.
It also has one of the most detailed employment frameworks in Europe.
WorkMotion’s own Italian entity holds all necessary local licenses, handles every step from UniLav filing to monthly INPS remittance, and gives your new hire a compliant employment relationship from day one. Your team manages the work. WorkMotion carries the compliance.
If you’re ready to hire your first employee in Italy — or move faster on a role you’ve already been trying to fill — Book a Demo and speak with a WorkMotion expert about what hiring in Italy actually costs and how quickly you can get started.
Italy has no statutory national minimum wage — pay floors, working hours, notice periods, and many benefits are set by the Contratto Collettivo Nazionale di Lavoro (CCNL) applicable to each sector.
The correct CCNL must be identified before the contract is drafted, explicitly cited in the employment agreement, and applied consistently throughout the employment relationship.
The Trattamento di Fine Rapporto (TFR) is Italy’s mandatory severance fund, accruing at approximately 6.91% of annual gross salary throughout the employment relationship.
It is payable upon termination regardless of the reason — including resignation and retirement — making it a high ongoing cost that many foreign employers fail to budget for upfront.
WorkMotion tracks TFR accrual monthly and includes it in your employment cost reporting, so finance teams can forecast accurately from day one rather than face a surprise at offboarding.
UniLav is a mandatory pre-hire notification that must be submitted to the relevant Italian job center no later than the day before an employee’s start date.
Missing or submitting it late is a compliance violation that can trigger fines and draw attention from labour inspectors — a common problem for foreign companies managing their first Italian hire without local support.
Italian law requires a documented organizational or production reason if a fixed-term contract exceeds 12 months, with a maximum duration of 24 months across all renewals with the same employee.
If these conditions aren’t met — or if the contract is structured to avoid permanent employment obligations — Italian courts can re-qualify the relationship as indefinite, triggering retroactive entitlements and potential fines.
Terminating a permanent employment contract in Italy requires a lawful basis — either just cause (giusta causa), justified objective reason (giustificato motivo oggettivo), or justified subjective reason (giustificato motivo soggettivo).
Unfair dismissal claims can result in reinstatement orders or compensation of up to 24–36 months’ salary, depending on company size and tenure, and Italy’s labour courts are consistently employee-favourable.
WorkMotion manages the full termination process — including notice period calculation under the applicable CCNL, TFR payment, and final payroll reconciliation — to reduce your company’s legal exposure at offboarding.
WorkMotion offers a Direct Hiring solution in Europe that allows companies to register as a foreign employer in Italy and transition to direct employment — keeping brand ownership and full control of the employment relationship — without switching providers.
This makes WorkMotion a viable long-term partner beyond the initial EOR phase, rather than a stopgap that requires you to find a separate solution when your Italian headcount justifies a more permanent structure.
Discover how WorkMotion helps you hire anywhere, stay compliant, and manage global teams with ease.
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