Don’t risk non-compliance with local employment, social insurance, and tax regulations. PEOs/EORs take on the burden of compliance for you.
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.
Partnering with a Professional Employer Organization (PEO), or Employer of Record (EOR), is often more effective, faster and less risky.
23%: Under 15,000
27%: 15,000 - 28,000
38%: 28,000 - 55,000
41%: 55,000 - 75,000
43%: Above 75,000
Social Security: 32%
Social Security: 10.48%
Rates are known to vary according to the business sector.
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 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.
There are 12 public holidays a year for full-time workers.
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.
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.
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.
The father is eligible for leave if the mother is mentally ill or in the case of death.
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.
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.
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.
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 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.
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.
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.
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