Europe · EUR

Hire in Italy

Italian Republic — 59 million population, $35,660 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Italy.

Capital

Rome

Currency

Euro (EUR)

Languages

Italian

Time zones

UTC+1 (CET) / UTC+2 (CEST)

Hiring overview

Typical time to hire
2-4 weeks for contractor, 4-8 weeks for full-time
Entity requirement
Italian SRL or SpA. Registration at Camera di Commercio and INPS.
EOR available
Yes — from $399/employee/month through a Corpshore entity
Contractor of record
Yes — from $39/worker/month

Employment law

Standard workweek
40 hours
Maximum weekly hours
48 hours
Minimum annual leave
20 working days (4 weeks)
Public holidays
12 per year
Maternity leave
5 months (2 before + 3 after birth), 80% of salary from INPS
Paternity leave
10 days, fully paid (since 2022, made permanent)
Notice period
Varies widely by CCNL (national collective agreement) and seniority; typically 1-4 months
Severance
TFR (Trattamento di Fine Rapporto): ~1 month gross salary per year of service, accrued annually and paid at termination
Probation
Up to 6 months (per collective agreement)
Overtime rules
First 8 hours: minimum 10% premium. Night/Sunday/holiday overtime: typically 30-50% per CCNL. Maximum 250 overtime hours per year.

Tax overview

Income tax range
23% to 43%
Corporate tax
24% (IRES) + 3.9% regional tax (IRAP) = ~28%
Social contributions
Employer: ~30-32%. Employee: ~9-10%.
VAT / GST
22% (standard); 10% reduced; 4% super-reduced
Tax year
Calendar year (Jan-Dec)
Treaty network
Over 90 tax treaties

Compliance landscape

Worker classification
Subordination (subordinazione) is the key test. Cococo (collaborazione coordinata e continuativa) is an intermediate category. The Jobs Act (2015) reformed employment types and dismissal protections.
Data protection
GDPR + Codice in materia di protezione dei dati personali (D.Lgs. 196/2003, updated). Garante per la protezione dei dati personali enforces.
Right to work
EU nationals: free movement. Non-EU: nulla osta (authorisation) from immigration office + annual quota system (decreto flussi) for most work permits.
Non-compete
Enforceable under Article 2125 of the Civil Code if: compensated, limited to 3 years (5 for executives), and defined in scope. Compensation must be adequate (courts have voided clauses with token payments).
Collective bargaining
CCNL (Contratto Collettivo Nazionale di Lavoro) system is the backbone of Italian employment law. Over 900 active CCNLs cover virtually every sector. They set minimum pay, working conditions, and job classifications.

Payment rails

Bank transfer (SEPA)
Stripe Connect
Wise

SEPA is standard for Italian payroll. 13th and 14th month payments (tredicesima and quattordicesima) are common under CCNLs. Monthly payroll is the norm.

Key considerations for hiring

  • TFR (end-of-service benefit) accrues annually and represents a significant liability for employers
  • 13th month salary is mandatory; many CCNLs also require a 14th month
  • The Jobs Act (2015) introduced contratto a tutele crescenti (increasing protections contract) for new hires
  • Milan is Italy's financial and tech hub; remote work has accelerated hiring from southern regions

Business and cultural context: Italy

Business culture

Relationship-driven and expressive. Bella figura (making a good impression) matters. Regional differences are significant: the industrialised north differs markedly from the mezzogiorno. Family businesses dominate.

Key industries

Fashion and luxury
Automotive
Food and beverage
Mechanical engineering
Tourism
Pharmaceuticals

Talent pool strengths

Design and fashion
Mechanical engineering
Food science
Architecture
Cultural heritage management

Historical context

Italy's CCNL system, with over 900 active collective agreements, is one of the most complex in Europe. The system's origins lie in the 'Hot Autumn' (autunno caldo) labour protests of 1969, which established sector-wide bargaining as the norm. The 2015 Jobs Act was the most significant reform since, introducing a single open-ended contract type with graduated dismissal protections.

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Hire in Italy — employment law, tax, compliance | Corpshore Work