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Employer of Record Italy | Employment Contracts in Italy

Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax

Employer of record services in Italy encompass a comprehensive range of vital aspects, including the payroll cycle, employer and employee contributions, minimum wage requirements, hiring processes for employees, contractors, and expats, background checks, employment contracts, onboarding procedures, employee benefits, social security coverage, healthcare and insurance provisions, leave policies, public holidays, work permits and visas, probation periods, notice periods, termination and severance protocols, and personal income tax obligations.

Time zoneUTC+01:00 (CET)
Total Time zones1
Working hours per week40
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadline23 July or 30 November, depending on filing status.
Financial Year1st January to 31st December
Date formatdd/mm/yyyy
CurrencyEuro (EUR)
VATthe standard rate is 22%

Employer Payroll Contributions in Italy

Employers% of Gross Salary
Social Security29% to 32%
Injuries at Work Insurance0.4%
Total Employment Cost32.4%

Employee Payroll Contributions in Italy

Employees% of Gross Salary
Social Security10%
Total Employee Cost10%

Minimum Wages in Italy

Minimum Wage
Minimum WageNot mandatory

Payroll Cycle in Italy

Payroll CycleMonthly
13th Salary13th monthly salary is paid at the end of December. Some companies pay 14th monthy salary as well.

Personal Income Tax in Italy

Income Tax
Up to 15000 EUR 0%
15,000 - 28,000 EUR27%
28,000 - 55,000 EUR38%
55,000 - 75,000 EUR 41%
Over 75,000 EUR43%

Employment Contracts in Italy

In Italy, the Legislative Decree no. 152 of 26 May 1997, incorporating the European Union Directive no. 533/91 and amended by Legislative Decree no. 104 of 27 June 2022, mandates that employers, both public and private, must provide accurate information to employees prior to the start of their employment. This information can be conveyed through a written individual employment contract or a copy of the notice of employment commencement. The individual employment contract should cover essential details, including the identities of the parties involved, the workplace location, the start date of the employment relationship, the duration of any trial period as per the applicable agreement, the expiration date for fixed-term contracts (where permitted by law), compensation details along with the method and frequency of payment, any specific terms or conditions related to salary and fringe benefits, working hours, annual paid holiday entitlement, the employee's duties and job category according to Section 2095 of the Civil Code, and the procedures, format, and notice terms for termination by either the employer or the employee. Additional information, such as the collective agreement and plant level agreement, can be provided to the employee within one month from the commencement of employment.

Fixed-term/Open-ended Contracts

In Italy, open-ended contracts are the common form of employment, but there are also alternative and more flexible contract types, such as fixed-term agreements. The regulations governing fixed-term contracts are outlined in sections 19-29 of Legislative Decree no. 81 of 15 June 2015, as amended by Law Decree no. 87 of 12 July 2018 (converted with amendments into Law no. 96 of 9 August 2018). According to these regulations:

Fixed-term contracts can be entered into for any purpose and for any type of work without the need for a specific reason, but only for contracts lasting up to 12 months.

An additional term, not exceeding 24 months, can be applied only if at least one of the following "conditions" is met:

  • Temporary and objective needs unrelated to the company's regular activities.
  • Replacement needs for other employees.
  • Temporary, significant, and unpredictable increases in regular activity.

These "conditions" also apply to extensions of fixed-term contracts that exceed 12 months or to contract renewals.

If a fixed-term contract exceeds 12 months without meeting one of the specific "conditions," it is automatically converted into an open-ended contract from the date the 12-month limit is exceeded.

The number of employees on fixed-term contracts cannot exceed 20% of the total number of permanent employees as of 1 January each year. Failure to comply with this provision results in a fine based on the number of employees hired beyond this threshold, but the fixed-term agreements remain valid.

Fixed-term contracts are prohibited in the following cases:

  • To replace employees on strike.
  • In productive units where employees performing the same duties as those hired on fixed-term contracts have been collectively dismissed within the previous six months, as per Italian Labour Law no. 223 of 23 July 1991.
  • In productive units where employees performing the same duties as those hired on fixed-term contracts are suspended from work.
  • By employers who have not conducted risk assessments as required by Legislative Decree no. 81 of 9 April 2008.
  • Fixed-term employees are entitled to the same economic and regulatory rights as open-ended employees, except when there are objective justifications for differentiation.

Employment contracts often include a trial period, also known as a probationary period, which allows both parties to assess whether they want to establish a formal employment relationship.

The duration of this trial period is determined by the relevant National Collective Bargaining Agreement (NCBA) and varies based on the employee's assigned qualification (such as executive, middle-manager, white-collar, or blue-collar).

According to Legislative Decree no. 104 of 27 June 2022, the probationary period cannot exceed 6 months under any circumstances.

Section 2096 of the Italian Civil Code specifically requires that the probationary period be stipulated in writing and signed by both parties. Failure to meet this requirement renders the probationary period invalid, as if it never existed. Even if the NCBA does not mandate written form, the applicable law demands it. In the absence of a specific legal provision, it is understood that the probationary agreement must be signed concurrently with the conclusion of the employment contract and, in any case, prior to its execution. Failure to do so renders the agreement null and void, and the employment relationship assumes a definitive status.

During this trial period, both the employer and the employee have the freedom to terminate the contract without notice and without the obligation to provide compensation in lieu of notice.

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