Explore Our Unmatched Features that Elevate Your Hiring
Hiring in Italy gives employers access to a diverse and highly skilled workforce across manufacturing, engineering, fashion, automotive, technology, and professional services. Italy remains one of Europe’s largest labor markets, offering strong technical expertise supported by a well-established employment framework.
Employment in Italy is governed by the Italian Civil Code and national collective bargaining agreements, which regulate employment contracts, wages, working hours, termination, and employee rights. Employers must comply with statutory labor laws as well as sector-specific agreements. Many companies use job portals, recruitment agencies, and AI-powered hiring platforms to streamline recruitment while maintaining compliance.
Facts & Stats
Key Employment Rules Employers Must Know
Employment relationships in Italy are regulated through national labor law and collective bargaining agreements. Employment contracts must be in writing and specify role, salary, and working conditions. Probation periods are permitted and vary by contract type and seniority.
The standard working week in Italy is 40 hours, typically spread across five working days. Collective agreements may set shorter working hours depending on the sector.
Overtime is regulated and generally permitted within defined limits. Overtime pay rates are determined by collective agreements and usually exceed standard hourly pay. Employers must comply with maximum working time limits.
Italy does not have a single statutory national minimum wage. Instead, minimum pay levels are set through collective bargaining agreements that vary by industry and job role. Employers must apply the applicable agreement to remain compliant.
Employees are entitled to paid leave and statutory protections related to termination, notice periods, and severance pay.
Overview of Employer, Employee, and Individual Taxation in Italy
Approximately 9%
Employees contribute around 9% of their gross salary toward social security, which is automatically deducted from wages.
Approximately 30%
Employers in Italy contribute approximately 28% to 30% of an employee’s gross salary toward social security, unemployment insurance, and workplace injury coverage.
23%, 25%, 35%, 43%
Italy applies a progressive income tax system, with personal income tax rates ranging from 23% to 43% depending on income level.
Italy operates a mandatory public pension system funded through employer and employee social security contributions. Pension eligibility depends on age and contribution history.
Employment termination in Italy is regulated and requires valid legal grounds. Employers must follow formal dismissal procedures, including written justification and notice. Notice periods depend on the employee’s role, seniority, and applicable collective agreements. Immediate dismissal is permitted only in cases of serious misconduct. Notice periods in Italy vary by employee classification, seniority, and collective bargaining agreements. They typically range from 15 days to several months and apply to both employers and employees. Employees in Italy are entitled to severance pay known as Trattamento di Fine Rapporto (TFR). TFR accrues throughout employment and is payable upon termination, regardless of the reason for dismissal.
Employees in Italy are entitled to a minimum of 20 days of paid annual leave per year, excluding public holidays. Paid sick leave is available and compensated through the social security system, with employer obligations during the initial period. Maternity leave typically lasts five months and is paid through social security, while paternity leave is available and compensated according to statutory rules. Employees are also entitled to paid bereavement leave, usually ranging from 2 to 3 days depending on circumstances.
January 1
New Year’s Day
April 25
Liberation Day
May 1
Labour Day
June 2
Republic Day
August 15
Ferragosto
December 25
Christmas Day
Frequently asked questions
What makes Iris helpful for hiring in Italy?
Iris helps employers source and evaluate candidates efficiently while supporting compliance with Italian labor laws and collective agreements.
Is it mandatory to hire Italian nationals?
No. Employers can hire both Italian and foreign nationals. Non-EU employees must have valid work permits, while EU citizens can work freely in Italy.
How is severance calculated in Italy?
Severance pay is accumulated throughout employment under the TFR system and is paid to employees upon termination, regardless of the reason.
What are the official working hours in Italy?
The standard working week in Italy is 40 hours, though collective agreements may set shorter hours.
Do employees in Italy receive a pension?
Yes. Employees in Italy are covered by a mandatory public pension system funded through employer and employee contributions.
