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Italy
Euro
(The data below is for reference only. You may refer to the official government websites or contact us for updates.)
Book a DemoTalent Landscape Analysis
Italy boasts of a progressive financial standing, being the 9th largest economy globally. Their economy focuses mainly on the services and manufacturing sector, which makes up three-quarters of their GDP.
Major economic Cities
Padua, Milan and Venice
Skills in demand
Software and data engineering, luxury/fashion supply-chain management, automotive and mechanical engineering, and finance/consulting roles are in strong demand, concentrated in Milan.

Salary Data
The average salary in Italy are mentioned below:
Employing in Italy
When looking into hiring employees in Italy, employers must be knowledgeable of the country’s employment laws, benefits, payroll, and taxes. This section will provide you with the basics of what to prepare when onboarding talents from Italy.
Public and Provincial Holidays
Leave Information
There are no specific requirements for written Employment contracts in Italy. Oral contracts are also practiced when informally hiring employees. However, in the case of companies onboarding employees, an employment contract may only be valid when it is in writing and when it is presented to the employee within the first 30 days of employment. There is no mandatory requirement for a specific language to be used in the contract. Employers may choose to use Italian or English language.
The Probation Period in Italy is up to 6 months.
While it is not mandatory, quite a few employees in Italy are entitled to additional months’ remuneration (13th-month salary), generally paid in December.
Employee Benefits & Employment laws in Italy have ensured that employees in the country are well covered through the statutory benefits mentioned below. But employers can go above and beyond the mandatory benefits and give their employees more perks which may include:
Employees in Italy are paid on a monthly basis.
Though there is no statutory minimum wage in Italy. However, it is decided by collective bargaining agreement on a sectoral level.
The standard working hours in Italy are 40, with about 8 hours a day on an average. Any hours exceeding the regular 40 working hours a week are considered overtime and should get paid at 10% over their standard rate. Eight hours of overtime can be approved and fixed by the company.
| Type of Contribution | Contribution |
| Social Security | 30% |
| Type of Contribution | Contribution |
| Social Security | 10% |
| Income Group | Tax Rate |
| Up to 15,000 | 23% |
| 15,000 – 28,000 | 25% |
| 28,000 – 55,000 | 35% |
| Over 55,000 | 43% |
Italy follows a standard rate of 22%.
The contract can be terminated if the employment relation cannot be maintained: In the event of a breach of the employment contract, any occurrence, whether within or outside the employment relationship, that adversely affects the working environment and leads to a deterioration in the relationship between the employer and the employee will be considered.
The Notice period for employees in Italy is as following: For employment tenures of 9 months, 4 years, and 20 years, the respective notice periods range from 10 to 75 days, and for the 20-year tenure, it extends from 30 to 180 days.
Severance pay (TFR) in Italy is calculated by dividing the employee's gross annual salary by 13.5, increasing by 1.5% for each year of service, adjusted for inflation.
Since Italy is a member of the EU, immigration in the country follows the rules surrounding Schengen Visa. The same follows for work visas, tourist visas, etc. Working in Italy would require employees to legally comply with the visa regulations in the country. An employee must first secure a job before applying for a work visa. Employers will then be applying for their employees’ work permit to legally work in the country.
Employee Contract 
There are no specific requirements for written Employment contracts in Italy. Oral contracts are also practiced when informally hiring employees. However, in the case of companies onboarding employees, an employment contract may only be valid when it is in writing and when it is presented to the employee within the first 30 days of employment. There is no mandatory requirement for a specific language to be used in the contract. Employers may choose to use Italian or English language.
The Probation Period in Italy is up to 6 months.
While it is not mandatory, quite a few employees in Italy are entitled to additional months’ remuneration (13th-month salary), generally paid in December.
Employee Benefits & Employment laws in Italy have ensured that employees in the country are well covered through the statutory benefits mentioned below. But employers can go above and beyond the mandatory benefits and give their employees more perks which may include:
Leave Policy 
Public and Provincial Holidays
Leave Information
Payroll 
Employees in Italy are paid on a monthly basis.
Though there is no statutory minimum wage in Italy. However, it is decided by collective bargaining agreement on a sectoral level.
The standard working hours in Italy are 40, with about 8 hours a day on an average. Any hours exceeding the regular 40 working hours a week are considered overtime and should get paid at 10% over their standard rate. Eight hours of overtime can be approved and fixed by the company.
Taxes 
| Type of Contribution | Contribution |
| Social Security | 30% |
| Type of Contribution | Contribution |
| Social Security | 10% |
| Income Group | Tax Rate |
| Up to 15,000 | 23% |
| 15,000 – 28,000 | 25% |
| 28,000 – 55,000 | 35% |
| Over 55,000 | 43% |
Italy follows a standard rate of 22%.
Offboarding & Termination 
The contract can be terminated if the employment relation cannot be maintained: In the event of a breach of the employment contract, any occurrence, whether within or outside the employment relationship, that adversely affects the working environment and leads to a deterioration in the relationship between the employer and the employee will be considered.
The Notice period for employees in Italy is as following: For employment tenures of 9 months, 4 years, and 20 years, the respective notice periods range from 10 to 75 days, and for the 20-year tenure, it extends from 30 to 180 days.
Severance pay (TFR) in Italy is calculated by dividing the employee's gross annual salary by 13.5, increasing by 1.5% for each year of service, adjusted for inflation.
Visa and Immigration 
Since Italy is a member of the EU, immigration in the country follows the rules surrounding Schengen Visa. The same follows for work visas, tourist visas, etc. Working in Italy would require employees to legally comply with the visa regulations in the country. An employee must first secure a job before applying for a work visa. Employers will then be applying for their employees’ work permit to legally work in the country.
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