Currency
Euro (EUR)
EOR IN Italy
Employer of Record in Italy
Yes, you can hire an employee in Italy without setting up your own company there. Swivelt acts as the Employer of Record in Italy through our own local entity, so you can hire, onboard, and pay staff compliantly, usually within a couple of weeks. No local entity, and no third-party partner.
GET STARTED
EXPAND YOUR BUSINESS IN Europe
A guide to employing and growing your team in Italy
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Italy possesses a diverse and industrialized economy, renowned for its excellence in luxury goods, automotive engineering, manufacturing, and design. The country is a member of the European Union and maintains a labor framework deeply rooted in constitutional protections and national collective bargaining agreements (CCNLs). While there is no national statutory minimum wage, Italy guarantees fair and adequate remuneration through these sectoral CCNLs, which are legally binding for employers within those industries.
Employer Contributions
Social Security: 30%
Work Injury Insurance: 1.5%
Total Employer Contribution: 31.5%
Employee Payroll Taxes
Social Security: 10%
Income Tax: Progressive rates ranging from 23% to 43%
Total Employee Contribution: 10%
Employee Income Tax Rates
Up to €28,000: 23%
€28,001 – €50,000: 33%
Above €50,000: 43%
Statutory Leave
Employees are entitled to a minimum of 4 weeks (20 days) of paid annual leave per year. At least two weeks must be taken during the year of accrual, and the remaining two weeks must be taken within 18 months thereafter. There are also 11 national public holidays, plus one additional patron saint day depending on the municipality.
Pregnancy and Maternity Leave
Female employees are entitled to 5 months of mandatory maternity leave, usually 2 months before and 3 months after childbirth. This is compensated at 80% of the employee’s salary, primarily funded by the INPS.
Paternity Leave
Fathers are entitled to 10 days of mandatory paid paternity leave (20 days in case of multiple births), to be taken within 5 months of the child’s birth, fully funded by the INPS.
Other leaves
Parental Leave: Both parents are entitled to optional parental leave until the child reaches 12 years of age. For the first 6 months, parents receive a benefit equivalent to 30% of their salary.
Other Leaves: Includes bereavement leave, marriage leave, study leave, and sick leave, with costs typically shared between the employer and INPS.
Termination Process
Termination in Italy is strictly regulated. Dismissals must be justified by valid grounds, categorized as “just cause” (serious misconduct, no notice required), “justified subjective reason” (lesser breach of contract, notice required), or “justified objective reason” (economic or organizational reasons). Employees with permanent contracts are generally entitled to “Trattamento di Fine Rapporto” (TFR) severance pay, roughly equivalent to one month’s salary for every year of service, accrued annually.
Notice Period
Notice periods are determined by the applicable CCNL and the employee’s seniority and professional level, typically ranging from 1 to 4 months.
Probation Period
Must be explicitly stated in the employment contract and is governed by industry-specific CCNLs. Generally ranges from 1 to 3 months for most employees, and up to 6 months for managerial roles.
Can you hire in Italy without a local entity?
Yes. Through Swivelt’s EOR service, we become the legal employer in Italy on your behalf. You choose and manage the employee. We handle the local employment contract, payroll, tax, benefits, and compliance.
What Swivelt handles in Italy
1
A compliant Italy employment contract
2
Monthly payroll in Euro (EUR)
3
Local income tax and social contributions
4
Statutory benefits and leave
5
Ongoing compliance with Italy labour law
EOR FAQs
How long does it take to hire in Italy?
Usually one to two weeks once we have the candidate’s details, because our Italy entity is already in place.
Do we need our own company in Italy?
No. Swivelt’s local entity is the legal employer, so you do not need to register anything.
Does Swivelt use a local partner in Italy?
No. We operate through our own entity in Italy.