Italy offers a large, skilled workforce governed by national collective agreements and strong protections. All-in employer cost runs around 1.32x the gross salary, before the TFR severance accrual. Here is what to know before your first Italian hire.
Employment runs under the Civil Code and a national collective agreement (CCNL) for each sector that sets pay, levels, and conditions. Salaries are usually across 13 or 14 payments, and a deferred severance (TFR) accrues every year.
There is no statutory minimum wage; pay floors are set by the applicable national collective agreement (CCNL)*.
Monthly, with a 13th (and often 14th) month payment set by the CCNL.
Around 12 public holidays a year, including national and patron-saint dates.
Written contracts referencing the CCNL are standard. Probation length is set by the agreement, commonly up to six months.
Employer social-security contributions (INPS and INAIL) come to roughly 30% of gross salary, with a deferred severance (TFR) of about one month's pay per year accruing on top.
The trattamento di fine rapporto is a deferred severance that accrues each year and is paid out when employment ends, whatever the reason.
Employees pay their INPS share plus income tax (IRPEF) with regional and municipal add-ons, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
At least four weeks (20 days) of paid leave a year by law, often extended by the CCNL, plus paid leave-hour accruals.
Five months of compulsory maternity leave paid at 80% through INPS, with optional parental leave on top.
Shared parental leave of several months per parent, partly paid through INPS.
Paid through a mix of employer and INPS on a scale set by the CCNL, with job protection for a comporto period.
Dismissal requires a just cause or justified reason and follows a procedure. Notice is set by the CCNL and scales with level and tenure.
The accrued TFR is always paid on exit; unlawful dismissal can add reinstatement or an indemnity depending on the firm's size and hire date.
Set by the CCNL, commonly up to six months, with free termination during the period.
A VAT-number or 'co.co.co' contractor working like an employee can be reclassified, with back contributions and penalties.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Italian contract under the right CCNL, payroll, social security, and TFR, handled. One invoice, flat $499 per month.