EOR Service in Italy

Hire, Onboard and Pay Employees in Italy Quickly and Efficiently

Hiring in Italy at a glance

CURRENCY
Euro (EUR)
working hours
8 hours / day
public/bank holidays
12 Days
capital
Rome
language
Italian
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1 to Dec 31
minimum hourly salary
No minimum wage
CURRENCY
Euro (EUR)
working hours
8 hours / day
public/bank holidays
12 Days
capital
Rome
language
Italian
date format
DD/MM/YYYY
tax year
Jan 1 to Dec 31
payroll frequency
Monthly
GDP
USD 2,010.43 billion

Employer of Record in Italy

Consider partnering with an Employer of Record (EOR). An Italian EOR takes care of employment responsibilities like payroll, taxes, and labor law compliance, allowing you to focus on daily employee operations. This partnership streamlines expansion and ensures Italian employment law compliance.

Why use Italy EOR?

Italy's employment laws are unique and require careful handling. Unlike some countries with more flexible labor policies, Italy prioritizes employee rights and enforces strict compliance regulations.


Labor unions have a strong influence on employment conditions, and adhering to minimum wages, working hours, and payroll rules is essential. Unlike some other countries, Italy has clear federally mandated provisions for paid time-off.


Partnering with an Italy Employer of Record (EOR) or a Professional Employer Organization (PEO) simplifies the process of hiring and managing employees in Italy. These services help you efficiently onboard local talent while ensuring full compliance with Italian employment laws, payroll, and HR operations. This allows your business to concentrate on its core operations and growth strategies, all while ensuring compliance with Italian labor regulations.


EOR Costs in Italy

The price for Italy EOR/PEO services can vary depending on factors like the number of employees, the services you need, and project complexity. Typically, these services have a pricing model, involving a monthly fee per employee or a percentage of their salary. Extra costs might apply for additional or customized services as required.


Key Metrics For Foreign Employers 

Italy ranks 33rd globally for talent competitiveness in INSEAD’s Global Talent Competence report. The government has also initiated policies to introduce flexibility in its labor market, such as the "Jobs Act", which brought reforms making contractual arrangements more flexible and simplifying procedures for hiring and dismissal.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Italy.

Factors Global Ranking Interpretation
Rule of law 53 Indicates effectiveness of law enforcement
Labour-employer cooperation 68 Indicates positive labor-employee relationships
Reading Maths, and Science 33 Indicates average scores in OECD's survey of 15-year old students
University Ranking 18 Indicates average QS rankings
Labour productivity per employee 21 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 69 Indicates findability of skilled talent
Workforce with tertiary education 64 Indicates % of workforce with PG degrees
Digital Skills 35 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Italy.

Why work in Italy?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Italy

Expanding your team means hiring the right people for the right jobs when you need them. In Italy, having a local presence is essential for handling compliance, payroll, taxes, and benefits, which can be complex due to the country's employment regulations.

With Gloroots's global Employer of Record (EoR) service, you can entrust us to manage payroll, taxes, benefits, and compliance, allowing you to focus on your team and growing your business.

Risks of misclassification

Misclassifying workers means wrongly labeling them, like calling them independent contractors or excluding them from certain employment rules and benefits they should have.

Using a PEO/EOR in Italy helps reduce these risks. It ensures compliance with labor laws, accurate worker classification, precise payroll, and access to full benefits. This lets businesses focus on their core operations while experts handle employment-related tasks.

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Avoid hefty penalties with Gloroots.

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Employing in Italy

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer Payroll Contributions

Component Contribution Rate
Social Security 29.00% – 32.00%
Injuries at Work Insurance (INAIL) 0.40%-1%
Total Employment Cost 29.40% – 33.00%

Employee Payroll Contributions

Component Contribution Rate
Social Security 10.00%
Total Employee Cost 10.00%

Employee Income tax

Component Rate
Up to 15,000 23.00%
15,000 – 28,000 25.00%
28,000 – 50,000 35.00%
Over 50,000.01 43.00%

Separation

Termination 

Termination must have valid reasons, including notice, and align with the National Collective Agreement (NCA), unless it occurs through mutual agreement, employee's failure to meet job expectations, severe misconduct, or economic reasons.

Severance Pay

In Italy, severance pay is provided when the employer terminates the employee for valid reasons. Upon termination, the employee is entitled to receive the TFR (Trattamento di fine rapporto), which the employer accumulates monthly. The TFR amount is calculated using a formula that considers the employee's yearly salary divided by 13.5, with an additional 1.50% for each year of service, along with adjustments for inflation.

Notice Period

In Italy, the notice period for termination depends on whether it's initiated by the employer or the employee. The duration of the notice period is determined by factors such as the relevant National Collective Bargaining Agreement (NCBA), the employee's length of service, and their job classification. According to prominent NCBA agreements in Italy, if the employer initiates termination, the notice period can vary from 30 days to 12 months. Conversely, if the employee resigns, the required notice period can range from 30 days to 4 months.

Probation period

Probation periods mandated by Italian law are determined based on the employee's job role. Employees without managerial duties have a three-month probation period, while other employees, including managers and supervisors, have a six-month probation period. However, the probation period can often be defined differently in the applicable National Collective Agreements (NCAs) and may extend beyond these standard durations.

Start Hiring in Italy today

Expanding your global workforce means navigating a complex web of rules and regulations. Employers must ensure that every aspect of the hiring and onboarding process complies with local employment laws, payroll procedures, diversity, equity, and inclusion (DE&I) standards, GDPR, and data protection requirements, among others. While establishing local entities and starting the hiring process can be challenging, keeping up with the ever-changing compliance landscape can be even more demanding.

At Gloroots, we simplify these challenges by offering a comprehensive solution. Our in-house experts serve as a protective barrier against cross-border employment and payroll compliance risks. We help you create employment contracts, ensure timely payments, and provide compliant benefits, allowing you to focus solely on talent acquisition.

Our commitment is to provide a hassle-free global employment experience for both you and your employees in Italy.

Are you Ready to
Experience Seamless Hiring in Italy?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Italy.

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