Employment Law

Italian Employment Contract

In Italy, employers are required by law to have formal employment contracts for all workers. These contracts should always include any relevant details of the position, such as salary/wages, working hours, benefits and entitlements. They should also be written in Italian and use Euros.

Fixed Term

Indefinite

italy Working Hours

The normal working week in Italy is 40 hours and consists of five working days of 8 hours each day, usually Monday to Friday.

Holiday Policy

Italy Vacation

Employees in Italy are entitled to at least 20 days of paid leave. This is based on a five-day work week.

Taking Sick Leave in Italy

Employees in Italy are entitled to at least three days of paid sick leave if they present a medical certificate. Employees may need up to two years away due to serious illness or family issues.

Parental Leave in Italy

Female employees in Italy can take leave two months before and three months after giving birth. During this period, they receive 80% of their regular salary. Male employees can take one day of paternity leave, but they can also take up to two days of maternal leave if both parties agree.

italian Bonus

Although not required by law, Italy regularly pays "13th month" bonuses to employees every year. Payments are usually made around Christmas.

Termination and Severance in Italy

Employers in Italy can only fire employees in certain circumstances, such as for breach of employment contract or for financial reasons, and in most cases there are strict procedures to follow, so it is important to fully understand the regulations relevant to your specific situation.

Employees are also entitled to a payment at the end of service, known as the TFR, for which the employer must withhold 7% of wages.

Italian Taxes

Employees and employers in Italy are generally required to contribute to social security funds. Contributions are approximately 10% of salary for employees and 35% for employers.

Italian income tax is adjusted gradually, with tax rates ranging from 23% to 43% depending on income.

Italy's corporate tax rate (known as IRES) is 24%, but companies are also typically required to pay a 3.9% regional production tax (IRAP).

Health Insurance in italy

Italy has public healthcare, so businesses do not need and should not offer private health insurance. However, some employers do choose to offer private health benefits.

Salary and Health Insurance

Italian Compensation Law

Italy does not have a fixed minimum wage. Instead, collective bargaining agreements are often created to set out wages for a specific industry/role.

Welfare Management in Italy

Setting up an employee benefits system for employees in Italy can be difficult. Complex regulations and organizations can require significant time, effort and investment from employers.

Outsourcing your benefits administration processes ensures you fully understand and follow the rules, ensuring your compliance and significantly speeding up the process. At Remoly, our Italian Employer of Record and PEO and employment experts will help you find and arrange your benefits, advise you on your strategy, and ensure compliance with the law.