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Global businesses are increasingly hiring remote employees in Italy due to the country’s highly skilled workforce, particularly in sectors such as design, engineering, and technology. Italy also offers access to the broader EU market while benefiting from a strong remote work culture and improving digital infrastructure.
Italy offers a highly educated talent pool and competitive hiring costs, making it an attractive destination for global companies. Employers must comply with specific regulations around minimum wages, employment contracts, and social security contributions.
Learn more about salaries, employment costs, and legal requirements for hiring in Italy. Download the full hiring guide now!
Italy offers two main types of employment contracts: indefinite contracts, which are the most common, and fixed-term contracts. In most cases, employers and employees prefer to sign a written contract to ensure proper registration with the relevant authorities. While the contract should ideally be in writing, parties can also establish it verbally through actions like starting work.
Notice periods: Range from 15 days to up to 6 months or more, depending on employee category, seniority, and applicable collective agreements
Termination of employment: Just Cause (Giusta Causa), Justified Subjective Reason (Giustificato Motivo Soggettivo), Justified Objective Reason (Giustificato Motivo Oggettivo)
Need help tailoring employment contracts to Italy’s labour laws? Get our complete template!
In Italy, the government and employers offer employee benefits that protect workers and promote their work-life balance. They ensure employees receive essential social security coverage, paid leave, and protections related to family and health.
Curious about employee benefits in Italy?
Italy has a progressive tax system that applies to both individuals and businesses, with employers responsible for withholding income taxes and social security contributions from employees’ salaries. In addition to income tax, employers must also handle social security contributions, which fund pensions, healthcare, and other social benefits.
Personal income tax rate: Up to 28,000 — 23%; From 28,001 to 50,000 — 35%; Over 50,000 — 43%
VAT: 22%
Tax allowances: Italy employs a tax credit system rather than personal exemptions and allowances to determine taxable income. The amount of employment tax credit depends on the type and level of income, whether from employment, pensions, or self-employment.
Additional tax reliefs: Mortgage interest credit, medical expenses credit, education expenses credit
Want to explore Italy’s tax allowances and related tax rules?
Employers must pay salaries in accordance with the terms outlined in individual employment contracts or relevant collective bargaining agreements (CBAs).
Salary payment deadline: By the 10th of the following month
Taxes and contributions payment deadline: By the 16th of the following month
Payroll declarations deadline: By the 16th of the following month
Payroll currency: EUR
In Italy, collective bargaining agreements between trade unions and employers' associations govern key employment terms, including wages, hours, and benefits. While employers and employees can negotiate contracts, all agreements must align with national labour laws and CBAs. This ensures that contracts meet statutory minimum standards despite the freedom to negotiate.
Total employment cost: 30%
Minimum wage: No statutory minimum wage
Probation period: Up to 6 months for all employees; 3 months for non-managerial positions
EOR services in Italy let you legally hire individuals without setting up a local legal entity. The EOR acts as the official employer and handles all legal responsibilities, including:
PEO services in Italy deliver HR and administrative support while you retain your role as the legal employer. Employers with existing legal entities in Italy use PEO services to help manage their workforce operations, including:
Native Teams offers a payroll calculator tailored to Italy’s labour laws. With our tool, you can quickly estimate net and gross salaries, employer and employee contributions, and other mandatory deductions.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
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Freelancers in Italy typically register as libero professionista (self-employed professionals) or operate as sole proprietors (ditta individuale). They handle their own taxes and social security contributions, so as a client, you aren’t responsible for withholding taxes or contributions.
However, you must ensure that the working relationship clearly reflects a freelance contract and does not resemble an employment relationship to avoid misclassification risks. It is important to have a clear written agreement outlining the scope of work, responsibilities, payment terms, and deadlines to protect both parties.
