Italy Employment Law & Compliance Guide for Employers
Key employment laws in Italy: what employers need to know
Employment in Italy is governed by the Civil Code, labour statutes such as Legislative Decrees 66/2003, 81/2015 and 23/2015, and above all by the CCNL [national collective labour agreement] for each sector, which sets minimum pay, job levels, notice and extra monthly salaries. Foreign employers are often surprised that there is no statutory minimum wage, that every employee accrues TFR severance on every termination, and that most non-EU hires depend on annual quotas. This page summarises the core employer rules as of October 2026, with official sources.
Italy employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | No statutory national minimum wage. Minimum pay is set by the CCNL [national collective agreement] for each sector and job level, and courts use these pay tables to apply the constitutional right to fair pay (Article 36). | CNEL – National archive of collective agreements |
| Standard working hours | 40 hours a week of normal working time; CCNLs may set less. Average weekly hours including overtime may not exceed 48 hours over 4 months. Workers get 11 consecutive hours of daily rest and 24 hours of weekly rest. | Legislative Decree 66/2003, arts. 3–9 |
| Overtime pay | Capped at 250 hours a year unless the CCNL sets another limit. Overtime must be paid at a premium set by the CCNL, with higher rates for night and holiday work, or compensated with time off where the agreement allows. | Legislative Decree 66/2003, art. 5 |
| Paid annual leave | At least 4 weeks a year: 2 weeks in the year they accrue (consecutively if the employee asks) and the rest within 18 months. Leave cannot be paid out except on termination. CCNLs often add more days or hours. | Legislative Decree 66/2003, art. 10 |
| Public holidays | National public holidays set by law, including 1 and 6 January, Easter Monday, 25 April, 1 May, 2 June, 15 August, 1 November, 8, 25 and 26 December, plus 4 October from 2026 and the local patron saint's day. | Law 260/1949 on public holidays (as amended) |
| Sick leave | INPS pays a sickness allowance from day 4: 50% of average daily pay for days 4–20 and 66.66% from day 21 to 180. The employer pays the first 3 days and tops up to full pay where the CCNL requires, as most do. | INPS – Sickness allowance for employees |
| Maternity and parental leave | 5 months of compulsory maternity leave at 80% of pay, paid by INPS and often topped up by the CCNL. Fathers get 10 working days at 100%. Parents share up to 10–11 months of partly paid parental leave. | Legislative Decree 151/2001 (Parenthood Code) |
| Probation period | Must be agreed in writing. Maximum 6 months, with shorter limits by job level in most CCNLs. Fixed-term contracts: 1 day per 15 calendar days, minimum 2 days, maximum 15 days (up to 6 months) or 30 days (6–12 months). | Legislative Decree 104/2022, art. 7 (as amended by Law 203/2024) |
| Notice period | Set by the CCNL by job level and length of service, typically from about 2 weeks to 4 months; pay in lieu is allowed. No notice is due for dismissal for just cause. Resignations must be filed online through the Ministry of Labour system. | Civil Code, arts. 2118–2119 |
| Severance pay | TFR [end-of-service allowance] is due on every termination, whatever the reason: each year's pay divided by 13.5, revalued yearly at 1.5% plus 75% of inflation. Separate indemnities apply only when a dismissal is unlawful. | Civil Code, art. 2120 |
| Employer social contributions | About 30% of gross pay for most private-sector staff (roughly 29%–32% depending on sector, company size and job category), plus INAIL accident insurance by risk. TFR accrual of about 7% of pay is a further cost. | PwC Worldwide Tax Summaries – Italy, other taxes |
| Employee social contributions | About 9%–10% of gross pay (commonly 9.19% or 9.49%), plus 1% on pay above an annual pension threshold. Employees first insured from 1996 have a contribution ceiling (EUR 122,295 a year in 2026). | PwC Worldwide Tax Summaries – Italy, other taxes |
| Income tax on salaries | Employer withholds IRPF monthly as tax agent and makes a year-end adjustment. 2026 national rates: 23% up to EUR 28,000, 33% to EUR 50,000, 43% above, plus regional (1.23%–3.33%) and municipal (0%–0.9%) surcharges. | PwC Worldwide Tax Summaries – Italy (reviewed July 2026) |
| Mandatory bonuses and 13th-month pay | None required by statute, but almost every CCNL grants a 13th-month salary (tredicesima) in December, and some, such as commerce and tourism, a 14th (quattordicesima) in June or July. Once in the CCNL, they are mandatory. | CNEL – National archive of collective agreements |
| Work permits for foreign nationals | Non-EU hires from abroad usually need a nulla osta [work clearance] requested by the employer from the Sportello Unico per l'Immigrazione within annual decreto flussi quotas, then a visa and a residence permit. EU Blue Card and some skilled roles are outside quotas. | Consolidated Immigration Act (Legislative Decree 286/1998), arts. 21–27-quater |
| Employment contract requirements | Key terms must be given in writing at hiring (Transparency Decree). Fixed-term, part-time and probation clauses must be written. The employer files a UNILAV notice with the employment centre by the day before work starts. | Legislative Decree 152/1997 (as amended by Legislative Decree 104/2022) |
Employer obligations in Italy, topic by topic
Filter by primary service relevance
Does an employment contract in Italy have to be in writing, and how long can probation last?
What are the working hours and overtime rules in Italy?
Is there a minimum wage in Italy in 2026, and how is pay structured?
How much annual leave, holiday and family leave must employers in Italy give?
How much does an employee cost in Italy on top of gross salary?
What notice and severance does an employer owe when dismissing an employee in Italy?
Can a company in Italy hire a non-EU national, and which permit is needed?
Is it risky to engage contractors instead of employees in Italy?
Which CCNL applies to my employees in Italy, and what does it decide?
Key employment laws in Italy and official sources
- Civil Code (Royal Decree 262/1942), Book V, arts. 2094–2134 — Defines employment, notice, just cause and TFR severance.
- Law 300/1970 (Workers’ Statute) — Disciplinary procedure, worker rights, union rights and remedies for unlawful dismissal.
- Legislative Decree 66/2003 (working time) — Weekly hours, overtime limits, rest periods and annual leave.
- Legislative Decree 81/2015 (employment contracts) — Fixed-term, part-time and other contract types, and organised collaborations treated as employment.
- Legislative Decree 23/2015 (increasing protections) — Remedies for unlawful dismissal of employees hired since 7 March 2015.
- Legislative Decree 151/2001 (Parenthood Code) — Maternity, paternity and parental leave and related protections.
- Presidential Decree 917/1986 (TUIR, income tax code) — Taxation of employment income and the IRPF rate structure.
- Legislative Decree 286/1998 (Consolidated Immigration Act) — Nulla osta, quotas, EU Blue Card and residence permits for non-EU workers.
FAQs: hiring employees in Italy
Can a foreign company hire employees in Italy without a local entity?
Yes. A foreign company can register with INPS and the Italian tax agency as a non-resident employer, often through a local payroll agent, and employ staff under the applicable CCNL. This can create a permanent establishment for tax purposes. Many companies use an Employer of Record instead, which hires the employee under Italian law and handles INPS, INAIL, TFR and payroll while the company directs the work.
How much does an employee cost in Italy on top of gross salary?
Employer INPS contributions are roughly 29% to 32% of gross pay for most private-sector employees, depending on sector, company size and job category. INAIL accident insurance adds a small risk-based premium for office roles, and TFR accrues at about 7% of pay. A typical budget is 1.35 to 1.40 times gross annual salary, before CCNL welfare benefits.
What is the minimum wage in Italy in 2026?
Italy has no statutory minimum wage in 2026. Minimum pay is set by the CCNL that covers the employer’s sector, through pay tables for each job level, and is usually paid in 13 or 14 monthly instalments. Courts use these tables to enforce the constitutional right to fair pay, even for employers that have not signed the agreement.
How much notice and severance does an employer owe when dismissing an employee in Italy?
Notice is set by the CCNL, typically from about 2 weeks to 4 months depending on level and seniority, and is not due for just cause. TFR, roughly one month’s pay per year of service, is owed on every termination. If a court finds the dismissal unlawful, employees hired since March 2015 at employers with over 15 staff usually receive 6 to 36 months’ pay.
Can a company hire a foreign national in Italy, and what permit is needed?
Yes. EU, EEA and Swiss nationals need no permit. For non-EU workers abroad, the employer requests a nulla osta from the Sportello Unico per l’Immigrazione, usually within the annual decreto flussi quotas and on set filing days. The worker then gets a visa and, after arrival, a residence permit. The EU Blue Card and some specialist roles are outside the quotas.
Is it risky to engage contractors instead of employees in Italy?
Yes. A contractor who works under your direction, or whose work you organise in time and place, can be reclassified as an employee. The company then owes back contributions with penalties, INAIL premiums, TFR, 13th-month pay and CCNL pay differences, and the worker gains dismissal protection. Keep contractors on defined projects with real autonomy.
Related NNRoad resources for Italy: Employer of Record in Italy · Payroll in Italy · Hiring foreign employees in Italy · Contractors and on-demand talent in Italy · Italy employer cost calculator
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Regulation Updates in Italy
Legislative Decree 16 April 2026, No. 83 - Implementation of Directive (EU) 2024/1233 on a single application procedure for the issuance of a single permit enabling third-country nationals to reside and work in a Member State and providing a common set of rights for legally residing third-country workers
What it is: Legislative Decree No. 83 implements a single permit regime for third-country nationals to reside and work, and establishes new obligations for employers related to work permits.
What it changes: It harmonizes and shortens procedural timeframes for work permits and imposes an explicit employer obligation to promptly inform third-country workers about application outcomes, introducing new operational duties for employers and EOR/payroll providers.
Who is affected:
- Workers or employers explicitly mentioned or clearly implied by the policy summary.
What employers should do:
- Prepare to inform third-country workers promptly about application outcomes.
- Implement new operational obligations related to work permits with EOR/payroll providers.
Notes: Effective month: 2026-06.
Directorate Decree No. 40 of 13 May 2026
What it is: A revised set of provincial average hourly labor cost tables for the construction sector (operai and impiegati) has been published by Directorate Decree No. 40 of 13 May 2026.
What it changes: The decree provides updated payroll and social contributions entries that must be used for cost calculations and compliance in the construction sector.
Who is affected:
- Employers and EOR/payroll providers in the construction sector
- Workers categorized as operai and impiegati
What employers should do:
- Use the updated provincial average hourly labor cost tables for cost calculations and compliance
- Apply the revised payroll and social contributions entries as specified by the decree
Notes: Effective month: 2026-05.
Decree Law 'Work'
What it is: The Decree Law ‘Work’ introduces changes to eligibility for new hiring incentives and modifies employer social contribution rules.
What it changes: It ties eligibility for new hiring incentives to compliance with collective bargaining criteria and introduces employer-facing changes to social contributions, including targeted decontribution measures and contribution exemptions for certain hires and certified employers.
Who is affected:
- Employers offering new hiring incentives
- Certified employers and those hiring under targeted measures
What employers should do:
- Review eligibility criteria related to collective bargaining to ensure compliance for potential new hiring incentives
- Assess any available targeted decontribution measures and contribution exemptions affecting new hires and certified employers
Notes: Effective month: 2026-04.
INPS Circular No. 49 of 22 April 2026 - Suspension of contribution payments for exceptional meteorological events
What it is: INPS Circular No. 49 of 22 April 2026 introduces a formal Suspension of contribution payments for certain territories affected by exceptional meteorological events.
What it changes: It temporarily relieves employer obligations for social contributions and certain payroll reporting in Calabria, Sardinia, and Sicily where exceptional meteorological events occurred; the suspended amounts must be recovered in a single solution by 2026-10-10.
Who is affected:
- Employers located in Calabria, Sardinia and Sicily
- Self-employed and professionals located in those territories
What employers should do:
- Identify if the business operates in the affected territories
- Monitor the suspension period and ensure the recovery of suspended contributions is completed by 2026-10-10
Notes: Effective month: 2026-04.
Directorial Decree No. 1244 of 14 April 2026
What it is: Directorial Decree No. 1244 of 14 April 2026 authorizes extraordinary wage supplementation (CIGS) for PRIMOTECS S.P.A. and directs INPS to provide direct payment for the affected employees.
What it changes: The decree enables INPS to make direct payments for the CIGS measure to PRIMOTECS S.P.A., which affects how payroll processing handles this wage supplementation for the company’s affected employees.
Who is affected:
- PRIMOTECS S.P.A. and its affected employees
What employers should do:
- Coordinate with INPS for the direct payment flow under the CIGS measure for the affected employees.
- Adjust payroll processing procedures to reflect direct payment arrangements as mandated by the decree.
Notes: Effective month: 2026-04.
Sep 2025: Italy Job Retention and Medical Leave Law 2025
Italy’s new law, Law 18 July 2025 No. 106, aims to improve job security and provide support for workers battling oncological, disabling, or chronic illnesses. The legislation introduces up to 24 months of unpaid job-retention leave and grants an additional 10 hours per year of paid medical leave, with some provisions starting from 1 January 2026. The effective date of this policy is August 2025.
Update first published on NNRoad in Sep 2025. The current rules are summarised in the sections above.
Jul 2025: Italy to Regulate Gig Economy with New Law on Platform Work
Law no. 91/2025 enables transposition of the EU Platform Work Directive, introducing key rules on worker classification and algorithmic management in Italy.
Update first published on NNRoad in Jul 2025. The current rules are summarised in the sections above.
Discover the latest employment and compliance updates in Italy — helping you stay ahead in a changing regulatory landscape.