

Hire & manage teams remotely in Italy without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Italian
Euro (€, EUR)
29.40% - 32.40%
Monthly
GMT+2
Rome
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Variable pay (e.g., bonuses, stock options, incentive plans) granted to a financial industry executive or management is subject to an extra tax of 10%.
A productivity bonus is a variable remuneration granted to an employee in exchange for increased product quality and/or company productivity, as long as it is applied to the entire qualifying workforce.
The amount of the productivity incentive cannot exceed EUR 3,000 per year, or EUR 4,000 per year if all employees are equally involved in the company’s structure.
Such bonus is subject to a discounted taxation equal to 10% as regional and municipal withholding.
The rate of regional income tax varies depending on where you live. The income tax rate in the region ranges from 1.23% to 3.33%.
Municipal income tax depends on the municipality of residence. The municipal income tax rate ranges from 0% to 0.8%
32% – Social Security
0.40% – Injuries at work insurance (INAIL)
Total employment cost: 32.40%
10% – Social Security
Total employee cost: 10%
INPS (Istituto Nazionale della Previdenza Sociale) is the main entity of the Italian public retirement system. INPS provides pensions and other social security services using funds acquired in part from mandatory payments for mandatory insurances and in part from direct transfers from the government. All salaried workers and the majority of self-employed without a proper autonomous social security fund must join INPS.
Inail, the National Institute for Insurance against Accidents at Work, is a public non-profit entity safeguarding workers against physical injuries and occupational diseases.
Even as a result of recent legislative changes, worker protection is increasingly taking on the characteristics of an integrated system of protection, ranging from workplace prevention to medical services and financial assistance, as well as rehabilitation and reintegration of victims of workplace accidents or occupational diseases back into social life and work.
The standard working hours for full-time employees are 40. Employees can work a maximum of 48 hours per week, including overtime if specifically agreed.
In the absence of any collective bargaining rules, overtime is only permissible if both the employer and the employee agree, and only for a period of not more than 250 hours per year. Finally, the law stipulates that overtime be computed independently and paid as a salary increase under the NCBA, which may allow overtime to be rewarded with time off in addition to or instead of any salary increases that may be due.
Any termination of employment must be justified under Italian law. There are three primary categories of reasons for terminating an employment contract:
The payment of a postponed type of salary, sometimes known as a severance payment, is allowed under Italian law. It is called Trattamento di Fine Rapporto (TFR). When an employment contract is terminated, the TFR, together with other minor statutory termination amounts, must be paid to employees, regardless of the reason for termination. The TFR amount is determined by the employee’s income and duration of service (it is approximately equal to 8 percent of the yearly gross salary per each year of employment).
Under EU law this must be provided in full in writing and must include:
The main types of employment contracts are:
Probationary periods are common in Italy and the length varies depending on the terms of the applicable Collective Bargaining Agreement (CBA). The maximum term of probationary periods is six months.
Full-time employees are entitled to a minimum of four weeks of paid vacation per year. Individual contracts may provide for a greater period of vacation time, and vacation time cannot be replaced by a payment in lieu. The quantity of vacation time is also determined by the national collective bargaining agreement that governs the employment contract.
In Italy, employees are entitled to paid sick leave, which is funded by the employer and then the government.
For the first two periods of sickness per year, the employer pays 100% of the regular salary rate of pay for the first three days. For the third and fourth periods of sickness, this drops to 66% and 50%, respectively. Any following illness within a year is not covered.
From the fourth day onwards, the employee receives 100% of the usual salary rate of pay, paid as 50% by the company and 50% by the Italian government. The government begins to pay 66% on day 22 while the employers’ payment drops to 34%.
All female employees are entitled to five months of paid maternity leave, which is typically taken two months before the due date and ends three months following the delivery of the child. During maternity leave, the employee is entitled to 80% of her regular wage, which is paid by the employer and repaid by the INPS. In addition, after maternity leave, a new mother can take up to six months of unpaid leave.
The father is entitled to receive 100% of the regular salary and compulsory paternity leave of 10 days within five months of the child’s birth.
In Italy, an employee can take up to 10 months of unpaid parental leave.
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