Italy

Italy

Global Employment Solutions & PEO/EOR in Italy

Omnipresent makes it fast and easy to employ remote talent in Italy. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Rome
Currency
Euro (€, EUR)
Native Language
Italian
Payroll Frequency
Monthly
Employee Protections
Strict
Employment Costs
High
Termination
Difficult
Immigration
Easy
Cost of Living
Moderate
Population
60.36 Million

What You Need to Know About Employing in Italy


Don’t risk non-compliance with local employment, social insurance, and tax regulations. PEOs/EORs take on the burden of compliance for you.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Italy

How Do Omnipresent Global Employment Solutions Work?


Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Italy. Traditional methods of establishing global employment and subsidiaries in Italy typically takes months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services are helping hundreds of organisations onboard new employees in Italy in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Italy.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Italy.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Italy.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Partnering with a Professional Employer Organization (PEO), or Employer of Record (EOR), is often more effective, faster and less risky.

Curious to learn more?
Book a Call

Payroll & Taxes in Italy

Employee Income Taxes:

23%: Under 15,000
27%: 15,000 - 28,000
38%: 28,000 - 55,000
41%: 55,000 - 75,000
43%: Above 75,000


Italy

Employer Costs in Italy


Employer Contributions:

Social Security: 32% 

Employee Contributions:

Social Security: 10.48%

Rates are known to vary according to the business sector.

Italy

Working Hours in Italy


Typical Working Hours per Week:

The standard maximum work week in Italy is 40 hours per week. Employees can work a maximum of 48 hours per week, including overtime if specifically agreed. This can also be renegotiated and/or waived in specific employment contracts. 


Overtime Laws:

Overtime in Italy is a maximum of 250 hours per year. The law states that overtime should be calculated separately and should be paid in the form of a salary increase and/or additional time off. This does not apply to managers.


Italy

Public Holidays & Vacation Time in Italy


There are 12 public holidays a year for full-time workers.

Standard Public Holidays in Italy

  • New Years Day
  • The Epiphany
  • Easter Sunday
  • Pasquetta ‘Little Easter’
  • Liberation Day
  • Primo Maggio ‘Labour Day’
  • Festa della Repubblica
  • Ferragosto
  • All Saints Day
  • L’Immocolata ‘The Feast of the Assumption’
  • Christmas Day
  • St. Stephen’s Day

Vacation Time in Italy

All full-time workers are eligible for a minimum of four weeks paid leave per year. Individual contracts can provide for a longer period of holiday entitlement and holidays cannot be replaced by a payment in lieu. The amount of holiday leave also depends on the national collective agreement that the employment contract is under.

Italy

Types of Leave in Italy


Sick Leave:

Under Italy’s labour law, employees cannot be dismissed when off for sick leave (to the extent the sick leave does not exceed the maximum allowed duration provided by law/National Collective bargaining Agreement (NCBA), unless for just cause. At the end of the leave period, the employee is entitled to return to the same job position.

Maternity Leave:

Depending on the applicable NCBA, the employer must integrate the indemnity up to 100% of the salary. The employer cannot dismiss or make redundant until the child is 1, unless for just cause. However, the mother can resign without notice (and with the payment of the indemnity in lieu of notice that would be due in case of dismissal) any time during pregnancy until the child is 1.

Paternity Leave:

The father is eligible for leave if the mother is mentally ill or in the case of death.

Other Types of Leave:

Parental leave: Parental leave is available in Italy and grants a maximum of 10 months until the child is 12. This can be used by either or both parents, for a maximum of 6 months per parent. If parental leave is taken during the first 6 years, INPS will provide 30% of regular salary for the  first 6 months of leave.

Adoption: Upon adoption of a child, maternity or paternity leave is the same as for natural children—together with respective financial benefits. 

Work-related injury leave: NCBA or individual contracts generally provide for a period paid time off in the case of work injury. The period is generally between 6 and 12 months and applies for both a single period of sick leave and multiple periods. The employee is entitled to keep their job and receive their salary in proportion to the period set out in the NCBA or individual employment contract.

Italy

Health Insurance & Supplementary Benefits in Italy

The Italian Social Security system is managed by the Istituto nazionale della previdenza sociale (INPS) which provides benefits to employees and the self-employed in case of illness, maternity or unemployment. It does not administer the national health system, which is a separate entity. 

Those legally working in Italy are entitled to the same benefits provided by Italian social security institutions as Italian workers. National health insurance in Italy entitles the employee to low or no-cost treatment. Employee benefits in Italy are based on a company’s sector (and associated labor contracts) as well as an employee’s gender, age, salary level and location. This is true for both mandatory employee benefits in Italy, and supplementary employee benefits. No benefits are required by law, other than social security and leave entitlements

Details about international or country specific benefit packages can be provided on request. Please contact us for further details.


Italy

Termination Laws in Italy

 

There are a range of reasons that an employer can use to terminate an employee, which depend on the specific circumstances and can be very complex. If you would like to know more specific details, please contact us

Severance:

Employees in Italy have a right to severance pay ("Trattamento di Fine Rapporto") equivalent to a certain percentage of their annual salary multiplied by the years of service. Every year, the employer must contribute the agreed percentage of the annual employee's salary to a reserve. The employee is also typically entitled to receive more benefits depending on the employment scenario. Please contact us with any questions and for more information about severance in Italy.

Notice of Termination:

Notice of termination in Italy is typically governed by a NCBA. If there is not a NCBA in place then termination goes  by the contract - within the minimum statutory notice requirements. Notice of termination is also dependent on the employee's length of service and professional level.

Unprotected & Protected Termination:

Italian law protects employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in the Italy reach out to us directly with questions. Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination are highly complex and there can be a number of situation-specific variables.

Italy

Grow your global team. Employ the best talent, anywhere in the world.


The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Italy are strict with penalties for non-compliance. Let our team provide global employment solutions to take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. Our global PEO/EOR solutions are here to help you every step of the way.

Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

Curious to learn more?
Book a Call