Hire employees and manage payroll in Italy

Our guide to employing in Italy.

Country Facts

The Italian Republic is a member of the European Union and the Eurozone, the UN, the Group of Seven, the G20, NATO and the OECD. Its nominal GDP in 2021 was 2.106 trillion USD, which makes it the eighth largest economy in the world. Its Human Development Index is at 0.892, which is categorized as very high, with a global ranking of 29th.

country

Capital

Rome

Currency

Euro (EUR)

Language spoken

Italian

Population size (2020)

59,55 million

Ease of doing business (world bank ranking)

58

Cost of living index(2021)

73,11

Payroll frequency

Monthly

VAT - standard rate

22%

GDP - real growth rate(2020)

-8,87%

Employing in Italy

In order to pay out salaries in Italy, it is generally necessary to register a local company.


24 hours prior to the start of a new employment, the employer has to notify the public employment service (Centro per l’Impiego). As such, social security institutions INPS and INAIL are notified in accordance with the law.


Various collective labour agreements (CCNL) dictate the employer’s obligations. These agreements affect weekly work hours, minimum wages, probation periods and more. As such, it is wise to define a new employment contract together with a professional as it can have an important impact on your business.

Italy’s standard working hours are 8 hours per day (40 hours per week). Any additional work time spent by an employee has to be paid as overtime, which is further defined depending on the employment contract as well as the applied collective agreements.

List of Public Holidays - 2022

Date Holiday Name

1 January

New Year’s Day National Holiday

6 January

January Epiphany

17 April

Easter Day

18 April

Easter Monday

25 April

Liberation Day

1 May

Labour Day/ May Day

2 June

Republic Day

15 August

Assumption of Mary

1 November

All Saints’ Day

8 December

Immaculate conception

25 December

Christmas Day

26 December

St Stephen’s Day

Minimum wage

Italy has no nationwide statutory minimum wage. Instead, it is set by the respective National Collective Agreements.

Salary payouts

In Italy, payment of salaries takes place between the 31st of the current month or the 5th of the following month: i.e. the January salary will be paid on January 31st or February 5 at the latest.

For the payment of contributions and taxes, the deadline is the 16th of every month and the employer must have an Italian current account for the payments.

Italian law also dictates that salaries are paid in 13 monthly instalments, with the 13th instalment (known as la tredicesima) paid out yearly together with the December salary. Depending on the National Collective Agreement applied, some cases also call for a 14th monthly instalment, which is then usually paid out in June.

Taxes in Italy

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Italy

Employer

Corporate income tax rate : 24%

Social Security : 29% - 32%

Injuries at Work Insurance (INAIL) : 0.40%

Total employer cost : 29.40-32.40%

Employee

Social Security : 10.00%

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