Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Italy

Your quick guide on talent and labor compliance norms in Italy
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Capital
Rome
Currency
Euro
Languages
Italian, English
Payroll Frequency
Monthly
GDP per Capita
$38,168
Employer Tax
30%

Supplementary Guide for Employment and Expansion in Italy

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 professionals, STEM occupations, Teaching professionals, health-related occupations

Local Universities

The top local universities in the Italy are as follows:

University of Bologna

RANKING

Italy : 1

World : 112

Sapienza University of Rome

RANKING

Italy : 2

World : 121

Università degli Studi di Padova

RANKING

Italy : 3

World : 140

Università degli Studi di Milano

RANKING

Italy : 4

World : 145

Università degli Studi di Napoli Federico II

RANKING

Italy : 5

World : 150

Salary Data

No. Job Title Salary Range (in EUR) Salary Range (in USD)
1 Technical Product Engineer 1,540 - 5,340 1886.38 - 6541.10
2 Software Developer 1,950 - 5,750 2388.60 - 7043.32
3 Data Analyst 1,650 - 5,260 2021.13 - 6443.11
4 UX Designer 1,260 – 4,000 1543.41 - 4899.70
5 Project Manager 2,170 – 6,390 2658.09 - 7827.27
6 Sales Executive 2,320 – 24,100 362.79 – 876.08
7 Chief Accountant 1,520 - 7,550 1852.64 – 9202.24

Talent Sourcing Tips

Top Local Job Boards

Indeed Italy, Glassdoor Italy, GoogleForJobs, StepStone

Number of LinkedIn Users

16,490,000

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

Date Name Type
1 Jan New Year's Day National holiday
6 Jan Epiphany National holiday
17 Apr Easter Sunday National holiday
18 Apr Easter Monday National holiday
25 Apr Liberation Day National holiday
25 Apr The Feast of St Mark (Venice) Local holiday
1 May Labor Day / May Day National holiday
2 Jun Republic Day National holiday
24 Jun The Feast of St. John (Florence, Genoa, Turin) Local holiday
29 Jun The Feast of St. Peter and St. Paul (Rome) Local holiday
15 Aug Assumption of Mary National holiday
15 Aug Ferragosto National Holiday
19 Sep The Feast of Saint Januarius (Naples) Local holiday
1 Nov All Saints' Day National holiday
7 Dec The Feast of St. Ambrose (Milan) Local holiday
8 Dec Feast of the 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 20 days Yes
Sick Leave 30 days Yes
Maternity Leave 17 weeks Yes

Payroll

Payroll Cycle

Workers are paid once a month. Paydays are generally on the 27th of the month.

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Minimum Wage

There is no minimum wage set by law in Italy.

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Overtime pay

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.

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Health Examination Clause

Bonus

13th month salary

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 above. 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
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Taxes

Employer Payroll Tax

Tax Rate Contribution
30% Social Security

Employee Payroll Tax

Tax Rate Contribution
10% Social Security

Employee Income Tax

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

Tax Rate Income Group
0.00% Up to 15,000
27.00% 15,000 - 28,000
38.00% 28,000 - 55,000
41.00% 55,000 - 75,000
43.00% Over 75,000

VAT

Italy’s VAT for 2021 is 22% and is projected to remain as is until 2022.

Offboarding & Termination

The standard working hours in Italy are 40, with about 8 hours a day on an average

Termination Process

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

Notice Period

The Notice period for employees in Italy is up to 75 days

Severance Pay

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.

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