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Talent Wiki - Italy

Your quick guide on talent and labor compliance norms in Italy

Capital

Rome

Currency

Euro

Languages

Italian, English

Payroll Frequency

Monthly

GDP per Capita

$33,739.75

Employer Tax

30%

Talent Overview

Italy boasts of a progressive financial standing, being the 9th largest economy globally. Their economy focuses mainly on the services and manufacturing sector, which makes up three-quarters of their GDP.

Major economic hubs:

Padua, Milan and Venice

Skills in demand:

ICT professionals, Marketing, creative and Design professional, STEM occupations, Teaching professionals, and health-related occupations

Local Universities

The top local universities in Italy are listed below:

Università degli Studi di Bologna

Ranking:

Local: 1

World: 122

Università degli Studi di Padova

Ranking:

Local: 2

World: 197

Politecnico di Milano

Ranking:

Local: 3

World: 209

Università degli Studi di Milano

Ranking:

Local: 4

World: 229

Università degli Studi di Torino

Ranking:

Local: 5

World: 277

Salary Data

Some popular jobs in Italy and their respective monthly salaries are as follows:

Job Title Average Monthly Salary (EUR) Average Monthly Salary (USD)
Financial Manager 7,390 7873.64
General Manager 6,330 6744.27
Business Development Manager 5,940 6328.74
Financial Analyst 4,900 5220.68
Business Analyst 4,740 5050.21
Project Manager 4,180 4453.56

Talent Sourcing Tips

Top Local Job Boards:

Indeed Italy, Glassdoor Italy, GoogleForJobs, StepStone

Number of LinkedIn users:

17,380,000

Top Recruitment Agencies:

Adecco, NewHorizons, NGA Human Resources Italy, Ali

Multiplier Recruitment Partner:

iXceed

Employing in Italy

When looking into hiring employees in Italy, employers must be knowledgeable of the country’s employment laws, benefits, payroll, and taxes. This section will provide you with the basics of what to prepare when onboarding talents from Italy.

Employee Contract

There are no specific requirements for written Employment contracts in Italy. Oral contracts are also practiced when informally hiring employees. However, in the case of companies onboarding employees, an employment contract may only be valid when it is in writing and when it is presented to the employee within the first 30 days of employment.

There is no mandatory requirement for a specific language to be used in the contract. Employers may choose to use Italian or English language.

Probation Period

The Probation Period in Italy is up to 6 months.

Public and Provincial Holidays (2023)

Date Name Type
1 Jan New Year’s Day National Holiday
6 Jan Epiphany National Holiday
9 Apr Easter Sunday National Holiday
10 Apr Easter Monday National Holiday
25 Apr Liberation Day National Holiday
1 May International Workers’ Day National Holiday
2 Jun Republic Day National Holiday
15 Aug Assumption Day National Holiday
1 Nov All Saints’ Day National Holiday
8 Dec Immaculate Conception National Holiday
25 Dec Christmas Day National Holiday
26 Dec St Stephen’s Day National Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 4 weeks Yes
Sick Leave First 3 days unpaid Yes
Maternity Leave 5 months Yes

Payroll

Payroll Cycle

Employees in Italy are paid on a monthly basis.

Minimum Wage

Though there is no statutory minimum wage in Italy, it is decided by collective bargaining agreement on a sectoral level.

Overtime Pay

The standard working hours in Italy are 40, with about 8 hours a day on an average. Any hours exceeding the regular 40 working hours a week are considered overtime and should get paid at 10% over their standard rate. Eight hours of overtime can be approved and fixed by the company.

Bonus

13th-Month Pay

While it is not mandatory, quite a few employees in Italy are entitled to additional months’ remuneration (13th-month salary), generally paid in December. 

Employee Benefits

Employment laws in Italy have ensured that employees in the country are well covered through the statutory benefits mentioned below. But employers can go above and beyond the mandatory benefits and give their employees more perks which may include: 

  • Life Insurance
  • Medical Insurance 
  • Meal Allowance
  • Fuel Card (Transportation)
  • Accident Insurance

Taxes

Employer Payroll Tax

Type of Contribution Contribution
Social Security 30%

Employee Payroll Tax

Type of Contribution Contribution
Social Security 10%

Employee Income Tax

Income tax is levied at a progressive rate on all annual income as follows:

Income Group Tax Rate
Up to 15,000 23.00%
15,000 – 28,000 25.00%
28,000 – 55,000 35.00%
Over 55,000 43.00%

VAT

Italy follows a standard rate of 22%.

Offboarding & Termination

The contract can be terminated if the employment relation cannot be maintained:

  • Incase of breach of employment contract
  • When such an event occurs, even outside the employment relationship, which has an impact in the working environment causing the deterioration of the relationship between the employer and the employee

The Notice period for employees in Italy is as following:

Employment Tenure Notice Period
9 month 10-75 days
4 years 10-75 days
20 years 30-180 days

Severance pay is not a requirement in Italy. However, employees who have been dismissed or have resigned are legally entitled to the Trattamento di Fine Rapporto (TFR). 

According to the Italian Civil Code, any employee terminated, regardless of the reason, has the legal right to receive a leaving indemnity or the TFR. The calculation of it is as follows: 

  • Employee’s gross annual salary divided by 13.5. 
  • Deduct a withholding tax of 0.5% for the Italian Social Security / pension agency (INPS). This payment will fund the INPS to ensure that workers receive their TFR in the event that the company is incapable of doing so.

Visa and Immigration

Since Italy is a member of the EU, immigration in the country follows the rules surrounding Schengen Visa. The same follows for work visas, tourist visas, etc. 

Working in Italy would require employees to legally comply with the visa regulations in the country. An employee must first secure a job before applying for a work visa. Employers will then be applying for their employees’ work permit to legally work in the country. 

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration