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
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
Talent pool strengths
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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