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Employer of Record Italy
Hire staff and expand your business in Italy with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Italy designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Italy. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Italy takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Italy
A Brief Guide to Italy
Italy is renowned for its rich history, diverse culture, and exceptional cuisine. The country boasts stunning natural landscapes, ranging from the majestic Alps to the picturesque Mediterranean coast. Italy is a parliamentary republic and a member of international organizations such as the European Union, the Schengen Area, and the United Nations.
Category | Information |
Location | Southern Europe |
Capital | Rome |
Official Language | Italian |
Area | 301,340 square kilometers |
Population | Approximately 60 million |
Currency | Euro (EUR) |
Major Cities | Rome, Milan, Naples, Turin, Palermo |
GDP (2021) | $1.85 trillion USD |
Major Industries | Tourism, automotive, fashion, food and beverages, machinery |
Business Culture
Business Culture in Italy
In Italy, the business culture values professionalism, relationships, and a certain level of formality. Being punctual, dressing stylishly, and engaging in small talk are essential. Decision-making is often hierarchical, and trust is crucial in business dealings. Italians respect expertise and thorough preparation for meetings.
Adherence to proper business etiquette, such as exchanging business cards and addressing individuals by their titles, is customary. Success in Italian business culture requires adaptability, respect, and a focus on relationship-building.
Payroll and Taxes
Payroll and Taxes in Italy
In Italy, the 13th and 14th-month salary payments are customary, with the 13th month typically paid in December and the 14th month in June or July.
Employee Taxation
Italian income tax rates are progressive, with higher income levels subject to higher tax rates.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to EUR 15,000 | 23% |
| Up to EUR – 28,000 | 27% |
| Up to EUR – 55,000 | 38% |
| Up to EUR – 75,000 | 41% |
| Over EUR – 75,000 | 43% |
Employer Taxation
Employers in Italy are also responsible for various employer costs, which may include:
| Contribution Type | Percentage |
|---|---|
| Social Security | 23.81% |
| Family Allowances | 0.68% |
| General Fund | 1% |
| Sickness Benefit | 2.44% |
| Maternity | 0.24% |
| TFR Funds | 7.40% |
| TFR Guarantee Contribution | 0.20% |
| Employment Insurance | 1.61% |
| Injuries at Work Insurance | 0.40% |
Additional contributions for employees classified in the Dirigente category:
| Contribution Type | Amount |
|---|---|
| Dirigente – Fondo Mario Negri | 12.86% |
| Dirigente – Fondo Mario Negri (supplementary) | 2.31% |
| Dirigente – Fondo Mario Besusso | 5.51% |
| Dirigente – Fondo Pastore | EUR 358 |
| Dirigente – Tertiary Management Training Fund | EUR 24 |
Pension and Healthcare
Italy Pensions
Italy has a mandatory state pension system, funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 9.19% for pension and disability insurance
- Employers: 24-32% for pension and disability insurance (depending on the industry)
Healthcare in Italy
Italy’s public healthcare system, called the Servizio Sanitario Nazionale (SSN), provides comprehensive medical services to its residents, including primary care, specialist services, hospital care, prescription medications, dental care, maternity care, and mental health services. The SSN aims to ensure equal access to essential healthcare services for all residents, regardless of their financial status or geographical location.
Both employees and employers contribute to the system through a percentage of their salaries. This mandatory contribution is collected by the Italian tax authorities and allocated to the healthcare system.
Employment Law
Employment Law in Italy
Relevant Legislation:
Italian employment law is governed by various pieces of legislation, including:
- Civil Code
- Workers’ Statute (Law No. 300/1970)
- Legislative Decree No. 81/2015 on health and safety at work
- Legislative Decree No. 276/2003 on employment agencies and fixed-term contracts
- Legislative Decree No. 151/2001 on maternity and paternity leave
- Legislative Decree No. 286/1998 on immigration and foreign workers
Employment Contracts: Italian employment contracts should be in writing and include essential information such as duration of employment, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Italy is 40 hours per week, or 8 hours per day. Overtime work is regulated, with compensation for extra hours.
Leave: Employees in Italy are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime: In Italy, overtime work is regulated by law and collective agreements. In general, Italian law stipulates that overtime pay should be at least 1.5 times the regular hourly wage for the first eight hours of overtime work per week and 2.0 times the regular hourly wage for additional hours of overtime work.
Termination: Termination of employment in Italy requires proper notice, which varies depending on the length of employment. Employers can terminate an employee’s contract if there is a just cause, such as poor performance, misconduct, or redundancy. Employers must provide a written explanation for the termination based on just cause. Unjustified termination can lead to claims for damages or reinstatement.
Notice: Both employers and employees must give a notice before terminating an employment contract. The notice period varies depending on the employee’s length of service. Generally, the notice period ranges from 15 days to four months.
Severance Pay: Employees may be entitled to severance pay if they are terminated due to redundancy, restructuring, or other reasons that are not related to their performance or behavior. Severance pay is typically not provided in cases of termination due to misconduct, resignation, or the end of a fixed-term contract. The amount of severance pay an employee is entitled to often depends on their length of service with the employer. In Italy, employees must have worked for a minimum of one year to qualify for severance pay, and the amount increases with the number of years of service.
IMMIGRATION
Work Permits in Italy
The immigration process in Italy is organized and systematic, similar to most countries worldwide. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
Italy offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Italy include:
- Skilled Worker Permit: This permit is designed for individuals who have specialized skills or qualifications that are in high demand in Italy. Applicants must have a valid job offer from an Italian employer and must meet certain educational and professional requirements.
- Temporary Work Permit: This permit is issued for short-term employment and is generally valid for up to 12 months. Temporary work permits are typically granted for seasonal work, internships, or other temporary job opportunities.
- Family Reunification Work Permit: Foreign nationals who are married to or in a registered partnership with an Italian citizen or a person with a permanent residence permit may be eligible for a work permit through family reunification. This permit allows the holder to work in Italy without restrictions.
Citizens of European Union (EU) countries generally do not need a work permit to work in Italy, as they benefit from the freedom of movement within the EU. However, they are required to register with the local Italian authorities if they plan to work and stay in Italy for more than three months.
Public Holidays
Italy Public Holidays
Holiday Name | Date |
New Year’s Day | 1st January |
Epiphany | 6th January |
Easter Monday | Varies |
Liberation Day | 25th April |
Labour Day | 1st May |
Republic Day | 2nd June |
Assumption Day | 15th August |
All Saints’ Day | 1st November |
Immaculate Conception | 8th December |
Christmas Day | 25th December |
St. Stephen’s Day | 26th December |
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The Benefits
Italy Employer of Record Benefits
When you choose Agility EOR to expand in Italy, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Italy so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Italy authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Italy payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.