PEO/Employer Of record in Italy

Hire staff in Italy while we manage all employment and HR operations. No local company needed! 

PEO/Employer of Record in Italy - Hire Employees Compliantly

We are a Professional Employer Organization (PEO) that provides Employer of Record services in Italy, also known as “employment solutions” or “PEO solutions”.

Many companies opt to outsource their employment to minimize costs and legal risk when expanding their business operations in Italy.

We can help foreign companies navigate through Italian employment laws and requirements, saving you time so you can focus on core business activities.

While all employment, HR, administrative and legal matters are outsourced to us, you are able to have a physical presence in Italy without the need to set-up a legal entity.

Entity Not Required

Foreign clients do not need to register a legal entity in Italy when using PEO services.

100% compliant

We strictly follow official compliance guidelines to ensure a safe legal environment for all clients.

Fast Market Entry

We will help you to hire and onboard employees within one week.

Complete PEO package for efficient and compliant employment

On-board staff in Italy without any risks

Employment and payroll regulations in italy

Table of Contents

Employment Contract

Under EU law this must be provided in full in writing and must include:

  • Starting date and ay trial/probation duration
  • Expiration date if for a fixed term
  • Salary and benefits and frequency of payment
  • Working hours
  • Vacation entitlement
  • Employee’s duties and the related work “category” as established by the Civil Code

The main types of employment contracts are:

  • Full-time
  • Part-time
  • Fixed-term
  • On-call
  • Apprenticeship
  • Temporary agency

Working hours

The standard working hours for full-time employees are 40. Hours in excess of this should be paid at overtime rates, usually specified in a CBA.

Annual Leave

Italy, like several other European countries, has very generous annual leave benefits for employees.

Employees on full-time contracts are entitled to 20 days of vacation per year. This accrues monthly from the start date.

Sick Leave

Sick leave should be paid as followed:

  • Up to 3 days. Paid in full by the employer.
  • From day 4 to day 20. 50% paid by state social security (INPS). The remaining 50% usually paid by the employer as set out by a CBA.
  • From day 21 to 180. 66% paid by state social security (INPS). The remaining 34% usually paid by the employer as set out by a CBA.

Maternity Leave

Mothers are entitled to five months of maternity leave. Either one or two months can be taken before birth, at the choice of the mother.

Maternity pay is set at 80% of salary and is paid by the state social security provider, INPS.

Public Holidays

Italy has 12 national public holiday days per year. These must be given as non-working days, and most businesses will close on these days (although for some roles, they can, of course, be switched to other days).

Probationary Period

Employment law in Italy defines the maximum duration for any probationary period.

This is defined as:

  • 6 months maximum for executives and high-level employees
  • 3 months for other employees
  • Specific CBAs may define a different period, between 45 days up to 6 months.

Severance And Redundancy

Minimum notice periods are set by CBA and defined for different employee grades and lengths of service. 

Employers terminating a contract (other than for specified reasons such as misconduct) must offer the following payments:

  • A pro-rata payment to cover all untaken holiday (including for previous years)
  • A termination payment (“trattamento di fine rapporto“) equivalent to 1/13.5 of the annual salary, for each year of service.

Social security

These need to be paid both by the employee and the employer. The employee contribution should be deducted from salary and paid to the government, and the employer contribution paid in addition to this.

For all employees other than executives (the top grade of the employee), the total contribution is around 40%, split as follows:

  • For employee contribution, the total depends on the grade and category of the employee and the company’s size and business sector. It will be between 9.19% and 10.48% of total salary.
  • The employers contribution varies based on similar factors. It will be between 27% and 28% of the total salary.

Individual Income Tax

Income tax paid by employees should be deducted from the salary as well. 

As of 2020, the income tax rates for all employees are set as follows:

  • 23% up to €15,000
  • 27% from €15,000 up to €28,000
  • 38% from €28,000 up to €55,000
  • 41% from €55,000 up to €75,000
  • 43% over €75,000

Minimum Wage

There is no countrywide minimum wage set by law in Italy.

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