Guide to hiring employees in Italy

Key takeaways

• CCNLs dictate the terms: Italy has no single statutory national minimum wage. Sector-level National Collective Bargaining Agreements (CCNLs) set wage floors and employment terms, including job classification, probation, notice, and supplementary salary payments. 

• The 24-hour UniLav rule: You’ve to submit the mandatory UniLav hiring notice via the Ministry of Labor’s portal by midnight the day before a new hire starts. Missing this deadline can lead to fines.

• Written clauses matter (Transparency Decree): Italian law requires written documentation for key terms and clauses. Probationary periods, fixed-term contract, and part-time arrangements have to specify working-time terms in writing.

• Misclassification risks: Italian authorities and courts look at the substance of the working relationship. If a contractor lacks true independence, the relationship can be legally reclassified as permanent employment. This leaves you liable for back pay, severance (TFR), and social security contributions.

Italy is a member of the European Union. Its geographical location makes it a great hub for trade and logistics, especially to Southern Europe, North Africa, and the Middle East. 

Before hiring employees or independent contractors in Italy, you’ll need a solid understanding of contracts, taxes, wages, benefits, and other employment considerations. Our guide will tell you everything you need to know about hiring in Italy.  

What to know before hiring employees in Italy

If you’re expanding your business into Italy for the first time, there are important legal requirements to be aware of. These norms and laws influence hiring practices in Italy and many aspects of the employer-employee relationship, including compensation and benefits. 

G-P Gia™, our AI-powered global HR agent, can answer your toughest compliance questions across 50 countries — including Italy — and all 50 U.S. states. Reduce your reliance on outside counsel and cut the time and cost of compliance by up to 95% with Gia.

Here are five things to know about hiring in Italy.

1. Languages

Italy’s official language is Italian. Italian is used for most business communications, contracts, official documents, and day-to-day operations. English is the second most spoken language in the country. While English is increasingly used in multinational companies and in certain sectors like finance, technology, and tourism, Italian is essential for business dealings, compliance, and integration into the local market.

If Italian isn’t your first language, you can use Gia to draft contracts and other HR documents in Italian. Easily manage global HR processes and employee needs without the hassle of translation or localization. 

2. Italian employment trends

The employment rate in Italy is around 62.9%. Unemployment is 4.9%, but the rate is higher in the southern regions like Campania, Calabria, and Sicily. Youth unemployment remains high at about 21.6%. Italy has the lowest employment of university graduates in the EU. 

The Italian labor market has a high number of self-employed workers or workers with nonstandard jobs (e.g. part-time workers or on-call workers with no fixed hours). This can be an opportunity for companies looking to hire contractors in Italy.

3. Collective Bargaining Agreements (CBAs) and contracts in Italy

Italy doesn’t have a statutory minimum wage. About 95% of workers are covered by National Collective Bargaining Agreements (CCNL). CCNLs set sector-specific minimum wages, working hours, and employment conditions. Employers have to comply with the relevant CCNL for their sector.  Because of this, a CCNL is a core source of employment terms in Italy. 

Employers have to first identify the correct CCNL (e.g., commerce, technology, manufacturing) and classify employee roles accordingly. They dictate key employment aspects, including:

• Compensation structure: Minimum wage tables based on seniority, and mandatory 13th-month (and sometimes 14th-month) bonuses.

• Working conditions: Hour limits, sector-specific overtime premiums, and minimum paid leave.

• Contractual timelines: Maximum probation periods and notice periods for termination, as set by law or the applicable CCNL.

• Employee well-being: Healthcare benefits and mandatory welfare or pension contributions.

Choosing the wrong CCNL risks compliance violations, back-pay claims, and labor disputes.

Even if you don’t sign a traditional contract, you’re legally obligated under Italy's Transparency Decree, you’ve to give new employees with written details about their job in three specific stages: 

• Before or at the start of work: Provide core employment information.

• Within 7 days: Provide details on pay and work hours.

• Within 1 month: Provide all remaining employment information.

While a general relationship can exist unwritten, written form is strictly required for:

• Fixed-term contracts: Has to be in writing to specify the duration and the legal justification for the fixed term (limited to a maximum of 24 months). Without a written agreement, the contract is automatically legally treated as permanent.

• Probationary (trial) periods: Void unless agreed to in writing before the employee starts working. Without it, you can’t terminate the employee under trial terms.

• Part-time terms: The specific distribution of working hours has to be defined in writing.

• Non-compete agreements: Have to  be in writing and include compensation, limits on duration, geography, and scope of activity.

An electronic UniLav notification has to be filed with the Centro per l’Impiego by midnight before the start date to avoid penalties.

Written employment contracts are mandatory and should outline job duties, salary, working hours, duration, and termination conditions. Contracts don’t have to be in Italian, but if a contract is drafted in another language, an Italian translation may be required for official purposes. Contracts have to align with CCNL provisions and be submitted to the Centro per l’Impiego (public employment office) before the employee starts work.

Fixed-term contracts are limited to 24 months. If you want to extend a fixed-term contract, you must follow special procedures. Noncompliance with contracts can lead to penalties, including business suspension. 

G-P EOR has an Employment Contact Generator to help you draft compliant employment contracts that meet all legal needs and best practices in Italy.

4. Probation periods in Italy

A probation period (periodo di prova) is a trial phase for assessing a new hire's suitability. It has to be agreed in writing and signed by both parties before the start of employment.

The maximum duration is six months. Limits depend on the employee’s classification and the CCNL.

For fixed-term contracts, probation is proportionate:

• Calculated as one day of actual work for every 15 calendar days of contract duration.

• Minimum two days.

• Up to six months: Maximum 15 days.

• Six to 12 months: Maximum 30 days (unless the CCNL is more favorable).

During probation, either party can terminate the contract without reason, as long as it’s not discriminatory, retaliatory, illicit, or unrelated to the trial's purpose. Probation counts toward seniority.

5. Termination and notice requirements in Italy

Termination in Italy is regulated. All dismissals have to be based on legal ground and communicated in writing. Lawful grounds include:

• Just cause (giusta causa): Immediate termination without notice for serious misconduct.

• Subjective justified reason (giustificato motivo soggettivo): Notice for less severe misconduct.

• Objective justified reason (giustificato motivo oggettivo): Notice for business, economic, or organizational reasons.

If notice isn’t given, an indemnity in lieu of notice has to be paid. 

Disciplinary dismissals require formal notification and an opportunity for the employee to respond. Objective dismissals require the employer to assess whether the employee can be redeployed. Collective dismissal applies where an employer with more than 15 employees dismisses at least five employees within 120 days in the same province for economic, technical, organizational, production, or business-closure reasons.

6. The workweek and time off in Italy

Statutory law and CCNLs govern working hours and time-off entitlements. The average workweek is 40 hours, spread over five or six days, depending on the sector and company policy.

Overtime can’t exceed eight hours a week or 250 hours a year, unless otherwise specified by the relevant CCNL. Overtime is paid at premium rates. Employees get a minimum daily rest period of 11 consecutive hours every 24 hours, and at least one full day of rest per week (typically Sunday).

Employees get a minimum of four weeks (20 working days) of paid annual leave per year. Many CCNLs give extra vacation days. Italy has 12 national public holidays, and some regions or municipalities have more. Employees are entitled to paid time off on these days. 

You can easily administer benefits plans with G-P EOR. Our in-house experts continuously monitor employment laws to meet country-specific regulations and norms. Build and manage benefits plans through our platform to provide a smooth employee experience. 

7. Italy employment taxes, social security, and payroll

Income is subject to progressive national tax (IRPEF) plus local surtaxes. For 2026, IRPEF rates are:

• 23% up to EUR 28,000

• 33% for EUR 28,001–50,000

• 43% above EUR 50,000

Key contributions and reporting requirements include:

• Social security (INPS): Usually 33% of gross pay (23.81% employer, 9.19% employee), varying by sector.

• Accident insurance (INAIL): Employer-paid premiums based on risk.

• Reporting: F24 payments are due by the 16th of the following month; UNIEMENS reports by the last day.

• Payslips: Employers have to provide employees with a detailed payslip showing remuneration, deductions, tax withholdings, social security contributions, and net pay. 

Salary and severance:

• Payment frequency: Monthly, plus a 13th-month salary and potentially a 14th-month per CCNL.

• Severance (TFR): Accrued annually (annual pay/13.5) and paid upon employment termination.

Hiring models for global companies in Italy 

The best hiring model in Italy depends on your business goals.

Top hiring hubs in Italy

Some cities in Italy are known for particular industries. Knowing what each city has to offer allows you to focus your hiring efforts in the right place and fill roles faster. 

The top talent hubs in Italy are:

• Milan is Italy's financial and business capital. It’s home to the Borsa Italiana (Italian Stock Exchange), 121 banking institutes, and thousands of brokerage companies. The city is also a global fashion and design capital. Renowned brands like Gucci, Prada, and Armani have operations here. 

• Rome is the capital and a major center for government, public administration, and tourism. International organizations such as the Food and Agriculture Organization (FAO), the World Food Programme (WFP), and the International Fund for Agricultural Development (IFAD), are located here. Life science companies like Eli Lilly, Pfizer, and GlaxoSmithKline are also based in Rome.

• Turin is known for its automotive, engineering, and aerospace industries. Turin is much more affordable than Milan and Rome. Median rent prices can be as much as 38.5% lower than in Rome.

• Bologna is home to a Packaging Valley that produces high-tech packaging machinery. It’s also known as Motor Valley as it houses famous brands like Ducati, Lamborghini, and Maserati. The University of Bologna is one of the country’s oldest universities and provides a supply of emerging talent.

• Florence is known for its art, culture, and history. It has a manufacturing presence, mainly in textiles, pharmaceuticals, and machinery. Florence is considered one of Italy's more expensive cities.

Key industries in Italy

Understanding Italy’s main industries allows you to benchmark salaries and benefits. You can use this insight to make smart choices about where to invest and grow your workforce. 

The main industries in Italy include:

• Automotive: Italy is a big producer and exporter of specialized machinery. The country is home to car brands such as Ferrari, Fiat, Alfa Romeo, Lamborghini, and Maserati. Specialist talent includes car designers, various engineering roles, and automation professionals.

• Fashion: Italy is a global leader in fashion, luxury goods, and design. Major brands like Versace, Armani, Gucci, and Prada are headquartered in the country. Specialist talent includes designers, master artisans, and marketing professionals.

• Food and beverage: Italy is a leading producer of food products, including wine, olive oil, cheese, and pasta. It has universities and specialized culinary and hospitality schools dedicated to training skilled professionals. Specialist talent includes food technologists, agronomists, and wine export specialists.

• Chemicals: Italy is the third-largest chemical producer in Europe. It excels in specialty chemicals and consumer chemicals. The industry employs over 112,000 people and has an even larger indirect employment footprint. Specialist talent includes various engineering roles, R&D professionals, and quality control and assurance workers.

• Banking and financial services: Milan is the country’s financial hub. The city hosts major banks, insurance companies, and financial institutions. Specialist talent includes compliance officers, credit risk analysts, and portfolio managers.

The cost of hiring an employee in Italy

Whether you’re hiring one employee or an entire team in Italy, expenses are inevitable. Budget for the following:

• Setting up an entity (unless you partner with an employer of record)

• Advertising job positions

• Paying referral bonuses to employees with connections in Italy

• Paying an in-house hiring committee

• Traveling to and from Italy, including hotel stays, meals, and transportation

• Partnering with a translator to draft documents or facilitate conversations (if applicable)

• Using a background check service for screening candidates

According to G-P Verified sources from Gia, the employer burden rate in Italy, which includes costs triggered on top of salaries, ranges from 28–33%. 

What does a company need to do to hire employees in Italy?

Make sure you cover these essentials before expanding your team in Italy:

• File ComUnica (Comunicazione Unica), the unified online filing that can register the business with the Italian Business Register (Registro delle Imprese)

• File the Agenzia delle Entrate for tax/VAT purposes

• File INPS for social security

• File INAIL for workplace accident insurance.

• Get Italian tax identification numbers (codice fiscale) for directors, legal representatives, and relevant shareholders.

• Meet entity-specific incorporation requirements, including minimum capital rules where applicable.

• Set up banking and payment arrangements for capital, payroll, tax, and social security payments.

• Engage Italian legal, tax, payroll, or labor consulting support where needed.

Setting up a subsidiary in Italy can take weeks or months. Use G-P EOR to hire full-time employees in Italy without setting up your own entity. Build your team at a lower cost and with peace of mind that you’re doing so compliantly.

The steps to hiring in Italy

The hiring process in Italy is similar to the one you’re likely familiar with in your own country. The hiring process follows five basic steps: advertising the job, evaluating applications, interviewing candidates, sending job offers, and onboarding new employees.

1. Advertise job vacancies

Clearly outline the job description, responsibilities, and qualifications. Make sure job advertisements comply with antidiscrimination laws. Avoid mentioning protected characteristics such as gender, age, or ethnicity, unless legally justified. Specify application procedures, timelines, required documentation, and contact details.

InfoJobs, Jobrapido, EURES, Trovolavoro, LinkedIn, and Indeed are popular job sites in Italy.

2. Evaluate applications

Gather CVs and application forms. Screen candidates based on qualifications and experience, ensuring compliance with privacy regulations — such as providing a GDPR privacy notice if you collect personal data during the application phase — and antidiscrimination regulations.

Companies with 50+ employees must ensure that at least 7% (or one to two individuals for smaller companies between 15-49 employees) of their workforce includes people with disabilities.

3. Interview candidates

Interview candidates who made it onto your shortlist. You can do these interviews in person or virtually. Use structured, nondiscriminatory interview questions. Gia can help you create questions that follow antidiscrimination laws in Italy, so you can find the best fit for the role while complying with local regulations.

4. Make job offers

Contact your chosen candidate to offer them a position with your company. Prepare a written employment contract that includes all mandatory clauses  required by the relevant CCNL:

• Job title and duties

• Salary and working hours

• Duration (fixed-term or indefinite) and notice periods

• Reference of the applicable CCNL

Compliance check: Per Italy’s Transparency Decree, employers have to provide written employment terms — such as trial periods, leave, and training rights — either in the contract or a separate document within 1–30 days. For remote work, a separate written smart-working agreement (lavoro agile) is need.

Both parties have to sign the contract before employment begins.

5. Onboard new employees

Collect the successful candidate’s documents. These include ID, tax code (Codice Fiscale), social security number, and any sector-specific certificates. Non-EU nationals need a valid work permit, and their employment is subject to the annual quota system known as the “Decreto Flussi.”

Complete these mandatory onboarding steps:

• UniLav notice: Submit via the Ministry of Labor’s portal by midnight before the employee's start date. This notifies the local employment office, INPS, and INAIL.

• LUL recordkeeping: Register the employee in the Single Employment Ledger (LUL) to track hours, bonuses, and deductions.

• Payslips: Provide compliant monthly payslips (busta paga) detailing tax and social security withholdings.

• Health and safety: Enroll the employee in health and safety training.

If you’re working with an EOR like G-P EOR, you won’t have to worry about the administrative burden of onboarding. We’ll streamline the process, so you can focus on training your new hire and integrating them into your company culture.

Hiring independent contractors in Italy

Working with independent contractors in Italy can be a cost-effective way to test the market and build a presence without the commitment of full-time employees. Contractors based in Italy understand local consumer behavior, rules, and business practices. They’ll be ready to start working quickly with their own equipment and established work processes. 

Hiring contractors allows you to easily adjust your workforce based on your business needs, without the complexities and costs of employment. 

Before you enter an agreement with an independent contractor in Italy, consider the following:

1. Employees vs. independent contractors in Italy

It’s important to understand the difference between employees and independent contractors. In Italy, employers hire employees to do work and, in return, pay them a regular salary and benefits. Independent contractors provide services. Unlike employees, contractors set their schedules, use their own equipment, and work on specific projects, rather than having an ongoing role.

2. Penalties for contractor misclassification

Classifying someone as a contractor when they’re not can lead to severe penalties. Courts look at the actual day-to-day relationship, not just the contract. Key signs of employment include:

• Control: The company directs how, when, and where work is done.

• Structure: The worker follows set hours and uses company equipment.

• Exclusivity: The worker is fully integrated and can work mainly or exclusively for the company.

• Financials: The worker receives fixed pay and bears no business risk.

If a contractor is misclassified, your company faces liabilities:

• Back pay and CCNL benefits: Retroactive payment of employee entitlements, potentially including wage differentials, overtime, paid leave, holiday pay, and other CCNL benefits.

• Severance indemnity (TFR): Liability for backdated Trattamento di Fine Rapporto (TFR) accruals.

• Social security and insurance: Payment of missed INPS social security and INAIL workplace accident insurance contributions.

• Penalties: Administrative fines and tax penalties for non-compliance, with increased sanctions for intentional misconduct.

3. How to pay independent contractors in Italy

G-P Contractor™ takes away the messy, time-consuming process of hiring and paying international contractors. You can create and issue contracts and pay contractors with just a few clicks, all while ensuring a compliant process.

Hire employees and contractors in Italy with G-P

Our SaaS and AI-powered products – EOR, Contractor, and Gia – support companies as they build and manage global teams. 

G-P is the recognized leader in global employment with more than a decade of experience; the largest team of HR, legal, and compliance experts; and a global proprietary knowledge base.

Make hiring in Italy easier with G-P. Book a demo today.

Frequently asked questions