hire employees in

Italy,
made easy

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Italian / English

PAYROLL TAX 20.40% – 32.40%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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Italy

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Hire Employees in Italy - Overview

Italy is known for its strong cultural emphasis on craftsmanship, creativity, and attention to detail. These qualities make Italian employees highly sought after in industries such as fashion, design, and food. In addition, Italy offers a well-educated workforce with a high literacy rate and a strong focus on technical and vocational education. The country also boasts a low unemployment rate and a stable economy, making it attractive for businesses looking to hire or expand their workforce. Overall, Italy offers a range of skilled and dedicated employees who can bring innovative solutions and a unique flair to any team.

Facts & Stats

Population

59.07 (Labor Force 23.01 million)

Capital City

Rome

Languages Spoken

Italian

Currency

Euro

GDP per capita

$2.1T USD

Ease of Doing Business

58th in the world

Minimum Wage

No specific minimum wage

Average Wage

2475 EUR/ Month

Paid Leave

22 days/year

Italy: Business Environment

Business outlook

Despite a strong GDP rebound in 2021, Italy’s economy is expected to face challenges in the coming years due to the ongoing war in Ukraine. This continued uncertainty and deflationary pressures are expected to curb household consumption, causing slower growth in the service sector. However, incentives such as Tax Credits for private businesses and the National Recovery and Resilience Plan may help mitigate some of these negative impacts.

One potential risk factor is the country’s heavy reliance on gas for energy, as higher prices or supply disruptions could further hinder economic growth. Rising bond yields could also have a negative impact on the overall business outlook in Italy. Overall, it will be important for the government to carefully manage these potential challenges in order to sustain positive economic growth in the long term.

Business regulation

Employment and labor laws in Italy are quite complex. It is governed in two major ways: through legislation established in national law and through Collective Bargaining Agreements (CBAs) made between trade unions and employer’s associations. In addition, there are several EU employment laws that apply in Italy.

The Constitution and the Civil Code

The Constitution and the Civil Code are the two key pieces of legislation governing employment in Italy. The Constitution sets out the minimum standards and rules that must be adhered to in several areas, including employment. Meanwhile, the Civil Code covers employment in Section III and includes provisions on contracts, rates of pay, and other important topics.

European Union Directive No. 533/91

As an EU member state, Italy is also subject to several EU laws on employment, including European Union Directive No. 533/91. This directive covers contracts and sets out certain rights and obligations for employers and employees.

Collective Bargaining Agreements (CBA)

In addition to national legislation, employers also need to be aware of Collective Bargaining Agreements (CBA). These agreements are made between trade unions and employer’s associations and set additional employment terms and conditions on top of anything already set out in standard law. For example, CBAs can cover rates of pay and increases, as well as employment terms such as vacation and sickness.

It’s important for businesses to be aware of these different laws and agreements when recruiting employees in Italy. By understanding the legal landscape, businesses can ensure that they comply with all applicable laws and regulations. Partnering with an EOR in Italy who has expertise in this area can help you navigate the complexity with ease.

Business culture

As a country with a long history of commerce and trade, it’s not surprising that Italy has a strong business culture.

In terms of hierarchy within the workplace, there tends to be a more relaxed atmosphere where employees feel comfortable offering their input, and creativity is valued. However, Italians also place a high emphasis on punctuality and respect for authority figures.

In addition, personal relationships and connections are important for doing business in Italy. Networking and cultivating relationships with colleagues is essential for success. Building strong connections and establishing trust is crucial in the Italian business world, and it is not uncommon for deals to take longer to finalize while trust is built. Meeting face-to-face frequently and maintaining open lines of communication are also important elements of doing business in Italy.

Recruiting employees in Italy

Recruiting employees in Italy – Overview

When it comes to recruiting employees in Italy, employers have a few options available to them. The most common route is to advertise the position through job search websites such as Indeed, as well as networking within the industry. Employers can also work with recruitment agencies who specialize in finding and vetting potential candidates. Another option is to use headhunting firms, who actively seek out qualified individuals for specific positions.

Regardless of the method chosen, employers should make sure to comply with all regulations and paperwork before officially hiring a candidate.

Most important recruitment tools in Italy

Indeed
https://it.indeed.com
Indeed’s resume database includes millions of job seekers, allowing employers to easily search for potential hires by location, industry, and experience. Employers can also post job listings on the site, reaching a large pool of qualified candidates. Additionally, Indeed offers tools to optimize job postings and track application activity.

Glassdoor
https://www.glassdoor.co.in/Reviews/italy-reviews-SRCH_IL.0,5_IC3590962.htm
With its user-friendly interface and global reach, Glassdoor offers a valuable resource for employers looking to attract high quality candidates in Italy. Additionally, employers can target their job postings to specific regions or cities within Italy, making it easier to find the perfect fit for their team.

LinkedIn
https://it.linkedin.com
Not only does LinkedIn provide a database of prospective employees, with users’ resumes and experience readily available, but it also offers employers the opportunity to connect with individuals on a more personal level before bringing them into their company. LinkedIn also allows employers to search for specific skills and qualifications, making it easier and more efficient to narrow down candidates for open positions.

Interviewing employees in Italy

Interviewing employees in Italy – Overview

Interviews in Italy are typically conducted in person, and these can range from formal interviews to more informal and relaxed conversations. However, as with anywhere in the world, technology has changed the way interviews are conducted, and it is not uncommon for candidates to be interviewed via a video conferencing service like Zoom.

The interview process can involve several interviews, and most commonly, there are 2-3 stages of interviews (HR, line manager, and senior management). before offering to a candidate. However, it is down to individual employers to decide how complex they want the interview process to be, and it is not unusual to hire candidates after one interview.

Can I ask the candidate’s previous salary in Italy?

Although there is currently no legislation preventing you from asking about a candidate’s previous salary, it is generally considered poor practice. The legal situation may change in the future as there is a proposed EU directive being considered that will make it illegal to ask a candidate’s salary.

What is the typical salary increase at a new job in Italy?

The typical salary increase for a new job in Italy varies between industries. As a general guide, 8-10% is standard.

Onboarding employees in Italy

Onboarding employees in Italy – Overview

Successful onboarding in Italy should include introducing the new employee to their line manager and colleagues, and ensuring they have access to any training and support they will need to settle into their role.

All onboarding in Italy will also include providing the employee with their employment contract and benefits details, and collecting any required paperwork and banking details for salary payments from the employee to finalize the process. When onboarding employees in Italy, employers should ensure that they are complying with the complex labor laws in Italy. Using an EOR in Italy will ensure that your onboarding process is compliant.

Best remote working tools to use in Italy

As more and more companies in Italy shift to remote work, reliable tools are needed to help employees stay connected and maintain productivity.

Microsoft Teams – Offers a wide range of communication and collaboration options, including video conferencing, messaging, and shared document editing.
Zoom – A popular choice for virtual meetings and can support large group sessions.
Monday – A powerful project management tool that allows teams to organize tasks and track progress in real-time.

When choosing remote working tools for your company in Italy, it is important to consider the needs of your team and find a balance between features and ease of use.

Holiday season in Italy — 2023

Holiday Schedule in Italy [2023]

National public holidays in Italy in 2023 include:

Date	Holiday name
01 Jan., 2023	New Year’s Day
06 Jan., 2023	Epifania
09 Apr., 2023	Easter Sunday
10 Apr., 2023	Easter Monday
25 Apr., 2023	Liberation Day
01 May, 2023	Labor Day
02 Jun., 2023	Festa della Repubblica
15 Aug., 2023	Assumption of Mary
01 Nov., 2023	All Saints’ Day
08 Dec., 2023	Feast of the Immaculate Conception
25 Dec.2023	Christmas Day
26 Dec.2023	Santo Stefano

What is the typical salary increase employees in Italy expect?

The amount varies between industries and experience levels, but employees in Italy receive an average pay raise of around 6% every 12 months.

FAQs

Should I hire freelancers or employees in Italy?

When making the decision between hiring freelancers or employees in Italy, it is important to consider both the legal requirements and implications as well as the overall benefits for your business. Hiring an employee means that you will have more control over their work schedule and tasks. In terms of benefits for your business, freelancers may offer individualized skills or expertise that could be valuable for specific projects. Having a dedicated team of employees often allows for better workflow and communication within the company.

Ultimately, the best decision will depend on the unique needs and resources of your business. It is important to weigh all factors carefully before deciding.

Can I hire foreigners in Italy?

As with many countries, Italy has specific regulations and requirements when it comes to hiring foreigners. Before a non-EU citizen can be hired, they must have both a valid work permit and a residence permit. Both of these documents must be obtained before starting work, as the employer is responsible for ensuring that the employee is legally allowed to work in Italy. In addition, there is an annual quota for foreign workers.

EU Citizens do not need a work permit to work in Italy, but they must register with the local authorities within 8 days of arrival.

How do I open a Italy subsidiary?

Italian law requires that companies operating in Italy register certain legal documents with the authorities. To set up a branch office in Italy, you will need to provide information on the parent company and various documents attesting to the incorporation of the branch, such as:

Certificate of incorporation and the company’s articles of association and memorandum;
Registration certificate of the parent company that plans to establish an Italian branch office;
Details of the company’s secretary and at least one of the appointed directors;
Proof of having a registered office in Italy.

How do I hire employees in Italy?

Hiring employees in Italy follows a similar process to other countries, with the added requirement of obtaining a work permit for non-EU citizens. The first step is to define the job position and outline its requirements, duties, and responsibilities. Next, the company must advertise the job either via job sites, or by using a recruitment agency. Applicants can then submit their resumes, and the company will conduct interviews to select the best candidate.

It isn’t a legal requirement in Italy to have a written employment contract. But for a contract to be valid, there are some clauses that must be presented in writing. The employer must give these written clauses to the employee within 30 days of starting the job.

Hiring in Italy, Made Easy

Your business can easily hire employees in Italy without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

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Gary PaskyVP Software Development, PICS ITech (USA)

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"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

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