Italy at a glance
Taxes in Italy
Employer Contributions
| Contribution | Rate |
|---|---|
| Social security contributions (INPS) | 28%–33% of gross salary |
| Contribution | Rate |
|---|---|
| Social security contributions (INPS) | 28%–33% of gross salary |
| Contribution | Rate |
|---|---|
| Social security contributions | 9%–10% (varies by sector and collective agreement) |
| Gross Income | Tax Rate |
|---|---|
| €0 – €28,000 | 23% |
| €28,001 – €50,000 | 35% |
| Over €50,000 | 43% |
Employer of Record in Italy
How Remote& EOR Works
Remote& acts as the legal employer of your Italian workers — managing INPS filings, payroll, statutory benefits, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files INPS and taxes, administers benefits, ensures legal compliance |
| Employee | Works for your company under a locally compliant Italian contract |
Ask Remi:
"Hire a full-stack developer in Italy — €4,800/month, starting next sprint" Remi handles everything: contract, INPS registration, payroll setup, and SSN health enrollment.
Benefits in Italy
- National Health Service (SSN): Employees register with the Servizio Sanitario Nazionale, providing coverage to all legal residents including foreign nationals
- Supplemental health insurance
- Travel allowance
- Remote work stipend
- Company car
- Meal vouchers (buoni pasto)
- Performance-based bonuses
- Professional development budget
- Additional paid leave
- Flexible working hours
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 22 days (plus public holidays) |
| Sick Leave | 3 days – 6 months (varies by collective agreement) |
| Maternity Leave | 5 months |
| Paternity Leave | 10 working days (20 days for multiple births) |
| Parental Leave | 10 months |
| Family Care Leave | 2 days unpaid |
Employment conditions
Probation
Probationary period length depends on the employee's role — no statutory minimum; maximum is 6 months. Collective bargaining agreements often define the specific duration per job category.
Employee Rights & Protections
Italian workers are protected by: right to a safe workplace, payslip requirements, work-life balance protections, transparent working conditions, Right to Disconnect, trade union rights, personal data protection (GDPR), unfair dismissal protection, equal pay and anti-discrimination rights, maternity and parental protections, and harassment protection.
Payments
End of employment in Italy
Employment termination in Italy is highly regulated. Employers must demonstrate legitimate grounds before ending employment. Three legal bases exist:
- Just cause (giusta causa): Immediate dismissal for serious misconduct
- Justified subjective reason (giustificato motivo soggettivo): Dismissal with notice for less serious misconduct
- Justified objective reason (giustificato motivo oggettivo): Dismissal for business reasons (redundancy, reorganization)
Non-compliance with proper termination procedure may result in reinstatement orders or significant financial compensation.
Frequently asked questions
Four paths: run payroll from HQ (risky for Italian tax obligations); engage independent contractors (strictly regulated — false self-employment is widely penalized); establish an Italian legal entity (complex and time-consuming); or use Remote& as Employer of Record for the fastest compliant route.