Expand your global workforce in Italy
Your guide to the employment landscape, working customs and local labor laws in Italy
Capital
Rome
Currency
Euro
Languages
Italian, English
GDP per Capita
$37,645.19
Employer Tax
30%
Payroll Frequency
Monthly
Talent overview
Italy boasts of a progressive financial standing, being the 9th largest economy globally. Their economy focuses mainly on the services and manufacturing sector, which makes up three-quarters of their GDP.
Major economic hubs:
Padua, Milan and Venice
Skills in demand:
ICT professionals, Marketing, creative and Design professional, STEM occupations, Teaching professionals, and health-related occupations
Italy
Top local universities in Italy
Università degli Studi di Bologna
Ranking:
Local: 1
World: 128
Università degli Studi di Padova
Ranking:
Local: 2
World: 234
Università degli Studi di Milano
Ranking:
Local: 3
World: 241
Politecnico di Milano
Ranking:
Local: 4
World: 257
Sapienza Università di Roma
Ranking:
Local: 5
World: 284
Top Local Job Boards:
Indeed Italy, Glassdoor Italy, GoogleForJobs, StepStone
Number of LinkedIn users:
18,500,000
Multiplier Recruitment Partner:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Some popular jobs in Italy and their respective monthly salaries are as follows:
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Financial Manager | 7,390 | 8,093 |
| General Manager | 6,330 | 6,932 |
| Business Development Manager | 5,940 | 6,505 |
| Financial Analyst | 4,900 | 5,366 |
| Business Analyst | 4,740 | 5,191 |
| Project Manager | 4,180 | 4,578 |
Employ in Italy
Employing in Italy
When looking into hiring employees in Italy, employers must be knowledgeable of the country’s employment laws, benefits, payroll, and taxes. This section will provide you with the basics of what to prepare when onboarding talents from Italy.
Employee Contract
There are no specific requirements for written Employment contracts in Italy. Oral contracts are also practiced when informally hiring employees. However, in the case of companies onboarding employees, an employment contract may only be valid when it is in writing and when it is presented to the employee within the first 30 days of employment.
There is no mandatory requirement for a specific language to be used in the contract. Employers may choose to use Italian or English language.
Probation Period
The Probation Period in Italy is up to 6 months.
Public and Provincial Holidays
| Date | Name | Description |
| January 1 | New Year’s Day | National Holiday |
| January 6 | Epiphany | National Holiday |
| April 20 | Easter Sunday | National Holiday |
| April 21 | Easter Monday | National Holiday |
| April 25 | Liberation Day | National Holiday |
| April 25 | The Feast of St Mark (Venice) | Local Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| June 2 | Republic Day | National Holiday |
| June 24 | The Feast of St. John (Florence, Genoa, Turin) | Local Holiday |
| June 29 | The Feast of St. Peter and St. Paul (Rome) | Local Holiday |
| August 15 | Assumption of Mary | National Holiday |
| September 19 | The Feast of Saint Januarius (Naples) | Local Holiday |
| November 1 | All Saints’ Day | National Holiday |
| December 7 | The Feast of St. Ambrose (Milan) | Local Holiday |
| December 8 | Feast of the Immaculate Conception | National Holiday |
| December 25 | Christmas Day | National Holiday |
| December 26 | St. Stephen’s Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 4 weeks | Yes |
| Sick Leave | First 3 days fully paid | Yes |
| Maternity Leave | 20 weeks | Yes |
Leave Compliance
Payroll in Italy
Payroll cycle
Employees in Italy are paid on a monthly basis.
Minimum wage
Though there is no statutory minimum wage in Italy. However, it is decided by collective bargaining agreement on a sectoral level.
Overtime pay
The standard working hours in Italy are 40, with about 8 hours a day on an average. Any hours exceeding the regular 40 working hours a week are considered overtime and should get paid at 10% over their standard rate. Eight hours of overtime can be approved and fixed by the company.
How taxes work
Employer Payroll Tax
| Type of Contribution | Contribution |
| Social Security | 23.81% |
Employee Payroll Tax
| Type of Contribution | Contribution |
| Social Security | 9.19% |
Employee Income Tax
Income tax is levied at a progressive rate on all annual income as follows:
| Taxable Income | Income Tax |
| Up to EUR 15,000 | 23% |
| Between EUR 15,001 and EUR 28,000 | 25% |
| Between EUR 28,001 and EUR 50,000 | 35% |
| Over EUR 50,000 | 43% |
VAT
Italy follows a standard rate of 22%.
Bonus
13th-Month Pay
While it is not mandatory, quite a few employees in Italy are entitled to additional months’ remuneration (13th-month salary), generally paid in December.
Employee Benefits
Employment laws in Italy have ensured that employees in the country are well covered through the statutory benefits mentioned below. But employers can go above and beyond the mandatory benefits and give their employees more perks which may include:
- Life Insurance
- Medical Insurance
- Meal Allowance
- Fuel Card (Transportation)
- Accident Insurance
Employee offboarding
The contract can be terminated if the employment relation cannot be maintained:
- Incase of breach of employment contract
- When such an event occurs, even outside the employment relationship, which has an impact in the working environment causing the deterioration of the relationship between the employer and the employee
The Notice period for employees in Italy is as following:
| Employment Tenure | Notice Period |
| 9 month | 10-75 days |
| 4 years | 10-75 days |
| 20 years | 30-180 days |
Severance pay is not a requirement in Italy. However, employees who have been dismissed or have resigned are legally entitled to the Trattamento di Fine Rapporto (TFR).
According to the Italian Civil Code, any employee terminated, regardless of the reason, has the legal right to receive a leaving indemnity or the TFR. The calculation of it is as follows:
- Employee’s gross annual salary divided by 13.5.
- Deduct a withholding tax of 0.5% for the Italian Social Security / pension agency (INPS). This payment will fund the INPS to ensure that workers receive their TFR in the event that the firm is incapable of doing so.
Visa and
immigration
Since Italy is a member of the EU, immigration in the country follows the rules surrounding Schengen Visa. The same follows for work visas, tourist visas, etc.
Working in Italy would require employees to legally comply with the visa regulations in the country. An employee must first secure a job before applying for a work visa. Employers will then be applying for their employees’ work permit to legally work in the country.
Your employment toolkit for Italy
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration