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Global Expansion Guide

Italy

Manage and pay your employees easily with BIPO in Italy and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

Euro (EUR)

employment guide_language

Language

Italian

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Capital

Rome

Employer of Record Italy

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Italy

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  • Global Hiring Guide
  • Italy

Employer of Record Italy

Embark on your business expansion in Italy with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Italian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Open-ended Contracts (Contratto a tempo indeterminato)

The standard employment contract in Italy is an open-ended contract, with no predetermined termination date. As long as both employer and the employee fulfill their respective obligations, this type of contract provides job security. It is the preferred type and should be offered unless there is a legitimate reason to require a fixed-term contract.

Fix-term Contracts (Contratto a tempo determinato)

fixed-term contract has a predetermined termination date. Such contract is typically used to meet temporary needs, for specific projects, or to replace absent employees. The maximum duration of this type of contract is 12 months. However, duration may be extended to 24 months under Legislative Decree No. 81 of 15 June 2015, provided that:

  • Temporary and objective needs unrelated to ordinary activity exist;
  • The contract substitutes an absent employee; or
  • The contract addresses extraordinary, unforeseeable, and temporary increases in business activity.

Statutory Contributions

The overall social security contribution amounts to approximately 40% of an employee’s gross remuneration. The specific rate depends on the type of business activity, the number of employees, the employee’s position and seniority, the applicable collective bargaining agreement, and other factors. The employer’s contribution amounts to approximately 30% of the employee’s gross salary, while the employee’s contribution corresponds to approximately 10% of the gross salary.

The employee’s contribution may differ according to the employee’s category (e.g., worker, executive, manager) and the employer’s sector (e.g., manufacturing, commerce, tourism).

Under Italian law, wages are paid in 12 monthly installments, with an additional 13th month payment (“tredicesima”) made in December. Certain collective bargaining agreements also provide for the 14th month salary.

Minimum Wage

Italy does not provide for a statutory minimum wage. Most employees, however, are safeguarded under collective bargaining agreements, which specify minimum remuneration levels for each contractual category within the relevant sector, as delineated in the applicable National Collective Agreements (NCAs).

Public Holidays

In 2025, the Italy observes 12 public holidays. Actual dates are subject to the official announcement by the Italian government.

Holiday Name Date
New Year’s Day 1 January 2025
Epiphany 6 January 2025
Easter Sunday 20 April 2025
Easter Monday 21 April 2025
Liberation Day 25 April 2025
Labour Day 1 May 2025
Republic Day 2 June 2025
Assumption Day 15 August 2025
All Saints Day 1 November 2025
Immaculate Conception Day 8 December 2025
Christmas Day 25 December 2025
Boxing Day / St. Stephen’s Day 26 December 2025

Working Hours

Normal Working Hours

Unless otherwise specified by applicable collective agreements, employees’ daily working hours shall not exceed eight hours.

Rest Time

Employees are entitled to a minimum break of 10 minutes after six consecutive hours of work. Employees must also receive at least 11 consecutive hours of rest within any 24-hour period and a minimum of 24 consecutive hours of rest within each seven-day period, typically observed on Sunday.

For shift workers, due to rotating schedules, daily rest periods may not be combined with weekly rest periods. Weekly rest shall consist of 24 consecutive hours within each seven-day period, which is generally observed on Sunday and may coincide with daily rest periods for non-shift workers.

Night Work

Definition: At least 7 consecutive hours including the period between midnight and 5:00 a.m.

Overtime

Any hours worked more than 40 hours per week shall be considered overtime.

The statutory minimum overtime pay is 10% above the regular wage, which may be increased through collective agreements. Unless otherwise specified, overtime shall not exceed 8 hours per week or 250 hours per year.

Probationary Period

Italian law allows for a probationary period, the duration of which may be determined at the employer’s discretion, if it does not exceed six months.

The probationary period must be explicitly stipulated in writing within the employment contract. Collective bargaining agreements (CBAs) often impose limits on the maximum duration of the probationary period for certain categories of employees.

Leave

Italian statutory leave entitlements include the following:

Type Applicability Duration (per year)
Annual Leave All Employees No less than 4 weeks
Sick Leave All Employees Ranging from 3 days up to 6 months (first 3 days fully paid by employer)
Maternity Leave Female Employees 5 months; Daily allowance of 80% of salary payable by the social security system
Paternity Leave Male Employees 10 days (20 in case of multiple births); An additional 1 day transferable from the mother
Parental Leave Employees with children under 12 years old For employees with children under 12; Up to 6 months per parent, or 10 months for one parent alone (extended to 11 months if the father takes at least 3 months)
Extended Parental Leave Employees with disabled children under 12 years old Employees are entitled to extend parental leave until the child reaches the age of twelve, provided that the total duration, including standard parental leave, does not exceed three years
Bereavement Leave All Employees No less than 3 days

Collective agreements often also provide for marriage leave, study leave, electoral leave, and other special leaves.

Termination and Compensation

Notice Period

In Italy, the specific notice period is primarily governed by collective agreements. The length of the notice period generally varies depending on factors such as the employee’s length of service and their position within the company.

Severance Pay

Employees who resign or are dismissed are entitled to severance pay, known as “Trattamento di Fine Rapporto” (TFR). The severance amount is typically calculated as the annual salary divided by 13.5, although the calculation may vary according to the collective bargaining agreement applicable to the employee’s category. Each year, the employer must allocate a portion of the employee’s salary to the TFR, either within the company or to an external fund. This amount accrues over the course of employment and is payable upon termination of the employment relationship.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Italian regulations.
  • Contributions and Taxes: Our expertise in managing social statutory contributions and local income tax ensures your business complies with Italy’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Italy’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Italy’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Italy

Unlock your growth potential with BIPO’s Employer of Record service in Italy. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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