Hiring in Italy: Complete Guide 2027
Everything you need to know about hiring and managing employees in Italy
Overview
Italy is the eurozone's third-largest economy and a deep pool of engineering, design, manufacturing and finance talent. Employment is governed less by statute than by the national collective agreement (CCNL) each employee is classified under: it fixes minimum pay by level, notice, probation, leave and allowances; there is no statutory minimum wage. Employer on-costs run 30–33% of gross (INPS around 30%, INAIL 0.5–3%), plus a 6.91% TFR severance accrual and a 13th month, often a 14th. For a foreign company, an EOR is the fastest route to a compliant Italian hire without an S.r.l.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Italy
Italian payroll runs monthly, in 13 or 14 instalments (tredicesima in December, quattordicesima where the CCNL provides it). An employer needs a tax code, an INPS position and an INAIL position, and files the UNILAV hiring notice the day before the start. Employer contributions in 2025/2026 run about 30% of gross (INPS, 23.81% of it the pension share, by sector and headcount) plus INAIL accident insurance at 0.5–3% by risk class. Employees pay 9.19% INPS, 10.19% above €56,224 a year (€4,685 a month) in 2026; contributions stop at the €122,295 annual ceiling for those enrolled since 1996, and the daily minimum base is €58.13. On top, 6.91% of annual salary is set aside as TFR, the severance paid at exit. No statutory minimum wage: the CCNL (Commercio, Metalmeccanici…) sets pay by level. An EOR files the monthly F24 and UniEmens, the annual CU, 770 and INAIL self-assessment, and issues the payslip through the Libro Unico del Lavoro.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract with CCNL classification by level
- UNILAV hiring notice filed the day before start
- Probation up to 6 months (often 3 by CCNL)
Leave & Time Off
- 4 weeks annual leave (CCNL usually 26 days) plus ROL hours
- Sick pay from INPS, topped up by the employer per CCNL
- Maternity leave 5 months at 80%
Termination Rules
- Dismissal only for giusta causa or giustificato motivo
- CCNL notice from 15 days to 6 months
- Unlawful dismissal: 6 to 36 months' pay in indemnities
COMPLIANCE
CCNL Classification and Dismissal Compliance in Italy
Every Italian employee must be classified under a national collective agreement (CCNL) and a level within it; the wrong CCNL or level means back pay, back contributions and INPS penalties. Dismissal is only possible for giusta causa (serious misconduct) or giustificato motivo (subjective or objective, with CCNL notice of typically 15 days to 6 months). Since the Jobs Act, employees hired after March 2015 fall under the contratto a tutele crescenti: an unlawful dismissal costs 6 to 36 months' pay in indemnities, less in companies under 15 staff. Fixed-term contracts need a stated reason after 12 months and stop at 24. An EOR picks the CCNL, drafts the contract and runs the dismissal procedure with its notices and conciliation steps.
Key Challenges
- No statutory minimum wage: pay, notice and leave come from the CCNL
- Employer on-costs of 30–33% plus a 6.91% TFR severance accrual
- 13th and often 14th month salary instalments
- Dismissal only for giusta causa or giustificato motivo, indemnities up to 36 months' pay
- Fixed-term contracts need a reason after 12 months and stop at 24
Country Highlights
Advantages
- Strong engineering, design and manufacturing talent at below-DACH salaries
- Impatriate regime: 50% income tax exemption for 5 years for qualifying new residents
- Eurozone market with full EU labour mobility
- Milan is a European hub for finance, fashion and tech
- Mature INPS and INAIL systems with electronic filing (UNILAV, UniEmens)
Popular Industries & Roles
Technology
Avg. Salary: €40k-€75k
Milan, Rome and Turin hold a growing software and fintech talent pool priced well below Germany and the UK
Engineering & Manufacturing
Avg. Salary: €38k-€72k
Italy is Europe's second manufacturing economy, with automotive, machinery, aerospace and automation engineers across the north
Fashion & Luxury
Avg. Salary: €35k-€70k
Milan is the global centre of fashion and luxury, with deep design, merchandising and brand management talent
Top 3 Providers in Italy
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
G-P (Globalization Partners)
- Enterprise EOR across 180+ countries
- Compliance-first with owned entities
- ISO 27001, SOC 1 and SOC 2 Type II certified
- 4,000+ clients; founded 2012
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Ranked #1 for compliance on G2
Frequently asked questions
Hiring in Italy through an EOR, in short.
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How much does an employer pay on top of salary in Italy?
Employer contributions in Italy come to ≈30%; the largest mandatory line is Pension 23.81%. With the other statutory benefits and a typical EOR fee, budget ~45–55% on top of gross salary.
What does an EOR charge per employee in Italy?
Published EOR fees in Italy run $550–800/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Italy pay in tax and contributions?
Income tax is 23–43% progressive and employee social contributions are 9.19% (9.19% pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Italy?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Italy?
Deel, G-P (Globalization Partners) and Remote hold the first three places in our ranking for hiring in Italy. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Italy.
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