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Quick Hiring Snapshot
Capital: Rome
Currency: Euro (EUR)
Primary language: Italian
Statutory workweek: 40 hours per week, averaged over up to 4 months (may be extended by the applicable CCNL)
Minimum wage: No single national statutory minimum wage; minimum pay is set by the applicable National Collective Labour Agreement (CCNL)
Salary structure: Salaries are typically paid in 13 or 14 installments per year, depending on the applicable CCNL (13th month salary is compulsory in all industries)
Public holidays: National public holidays plus a local patron saint holiday
Key employment framework: Italian Civil Code and applicable National Collective Labour Agreements (CCNLs)
Hiring without a local entity: Available through Justworks EOR
Overview
Italy has a collective-agreement-driven labor system. Unlike some other European countries, Italy does not have a universal statutory minimum wage. Instead, minimum salary levels and many core employment terms are established through National Collective Labour Agreements (CCNLs) that apply by sector.
Employers hiring in Italy should expect formal written contracts, regulated working time rules, structured social security contributions, mandatory additional salary installments, and defined termination procedures. Many employment terms — including pay structure, probation limits, notice periods, and severance — are shaped by the applicable CCNL.
When hiring through Justworks EOR, Justworks serves as the legal employer in Italy. We manage compliant employment agreements aligned with the applicable CCNL, payroll processing in euros, statutory registrations, and required social contributions. Your team member works day to day with your organization, while employment compliance is handled within Italian legal requirements.
This guide provides a high-level overview of what to expect when hiring in Italy.
Note: This article is for informational purposes only and does not constitute legal or tax advice.
What Employers Should Plan for When Hiring in Italy
Before hiring your first employee in Italy, it’s important to understand how collective agreements and statutory protections shape the employment relationship.
Employment Contracts and Collective Agreements
Employment contracts must be provided in writing and clearly define:
- Role and classification level
- Compensation
- Working hours
- Probation (if applicable)
- Notice terms
Most employees in Italy are covered by an applicable National Collective Labour Agreement (CCNL). These agreements set binding minimum standards for:
- Salary levels and job classifications
- Working time rules
- Overtime treatment
- Probation duration
- Notice periods
- Additional payments (including 13th and potentially 14th month salary)
Identifying the correct CCNL for the role and sector is a critical early step in workforce planning.
Working Time
Italy’s statutory full-time workweek is 40 hours per week, averaged over a reference period of up to four months.
The applicable CCNL may extend the averaging reference period in certain cases.
Overtime is regulated and typically subject to premium pay or compensatory rest, depending on statutory rules and the applicable CCNL.
Employers must also respect minimum daily and weekly rest requirements.
While scheduling flexibility is possible, working time must align with statutory law and the governing CCNL.
Probation, Notice, and Termination
Probation periods are permitted and must be specified in the employment contract. Duration is determined by the applicable CCNL and employee classification.
Notice periods for resignation or dismissal are also governed by the CCNL and vary based on tenure and classification level.
Termination in Italy is formal and regulated. Depending on the reason for dismissal (e.g., justified objective reason, disciplinary dismissal, collective redundancy), different procedural requirements apply.
Employees are generally entitled to Trattamento di Fine Rapporto (TFR) — a statutory end-of-employment accrual paid upon termination, regardless of the reason for separation.
Because termination rules are structured and protective, employers should factor notice obligations and end-of-employment costs into workforce planning.
Compensation Expectations
Employees in Italy are paid in euros (EUR).
Italy does not have a single statutory national minimum wage. Instead, minimum salary levels are determined by the applicable CCNL, which establishes pay bands based on job classification and seniority.
A defining feature of Italian compensation is the 13th month salary (tredicesima), which is compulsory for all industries and typically paid in December.
In some sectors, a 14th month salary (quattordicesima) is also required, depending on the applicable CCNL. This is the case applicable to Justworks.
As a result, salaries in Italy are commonly structured as 13 or 14 installments per year, rather than 12 equal monthly payments.
Employers must also budget for employer social security contributions, which fund public healthcare, pensions, unemployment benefits, and other statutory protections.
When hiring through Justworks EOR, payroll and statutory contributions are administered in accordance with Italian law and the applicable CCNL.
Common Industries and Market Compensation
Italy’s economy is more diverse than many assume. Beyond traditional manufacturing, there is strong demand across industrial design, life sciences, luxury goods, renewable energy, and advanced engineering — many of which are well suited to EOR-supported hiring models.
Below are sectors that are particularly relevant for international companies hiring in Italy.
Life Sciences & Pharmaceutical Support Roles
Italy has a well-established pharmaceutical and medical device sector, with Milan and Rome serving as major hubs. While licensed clinical roles may require additional regulatory compliance, many corporate, regulatory, data, and operational positions could be EOR-compatible.
- Regulatory Affairs Specialist: approximately €35,000 – €55,000 per year
- Clinical Project Coordinator: approximately €40,000 – €65,000 per year
- Life Sciences Operations Manager: approximately €60,000 – €90,000+ per year
This sector is particularly attractive for multinational companies building EU-facing operations.
Luxury Goods, Fashion & Consumer Brands
Italy is globally recognized for luxury fashion, design, and high-end consumer brands. Milan, in particular, is a commercial hub for global fashion and retail headquarters.
International brands frequently hire in areas such as merchandising, supply chain coordination, and brand operations through EOR structures.
- Merchandising / Brand Specialist: approximately €30,000 – €50,000 per year
- Supply Chain or Distribution Manager: approximately €45,000 – €75,000 per year
- Retail Operations Manager: approximately €50,000 – €85,000 per year
This sector provides strong cross-border growth opportunities, especially for companies expanding into EU markets.
Compensation Disclaimer: The salary ranges provided above are for general informational purposes only and reflect broad market benchmarks at a point in time. Actual compensation may vary based on factors such as location, experience level, industry demand, company size, and economic conditions. Employers should conduct their own market research and benchmarking analysis before making a formal employment offer to ensure compensation is competitive and aligned with local market standards.
Statutory Programs and Social Security
Employees in Italy participate in the public social security system administered by INPS (Istituto Nazionale della Previdenza Sociale).
Employer and employee contributions fund:
- Public healthcare
- State pensions
- Unemployment benefits
- Family and disability benefits
Employers are responsible for registering employees and administering payroll contributions in accordance with Italian requirements.
When hiring through Justworks EOR, required registrations and statutory contributions are handled in compliance with Italian law.
Country-Specific Leave
Annual Leave
Employees are generally entitled to at least four weeks of paid annual leave per year. Our CCNL dictates 26 working paid vacation days per year.
Public Holidays
Italy observes national public holidays, as well as a local public holiday for the patron saint of the municipality where the employee works.
Public holidays are separate from annual leave entitlements.
Sick Leave
Employees who are unable to work due to illness may receive statutory sick pay through social security mechanisms, often supplemented according to the applicable CCNL.
Maternity, Paternity, and Parental Leave
Italy provides structured family leave protections:
- Maternity leave: Generally five months, partially funded through social security.
- Paternity leave: Statutory leave for fathers, subject to current legislative provisions.
- Parental leave: Available to eligible parents, subject to statutory limits and pay conditions.
FAQ
Can I hire in Italy without establishing a local entity?
Yes. Through Justworks EOR, you can hire employees in Italy without setting up your own Italian legal entity.
Is there a national minimum wage in Italy?
Italy does not have a single statutory minimum wage. Minimum pay levels are set by the applicable CCNL.
Is the 13th month salary required?
Yes. The 13th month salary is compulsory in all industries. In some sectors, under our CCNL a 14th month salary is also required.
How much annual leave is required?
Employees are generally entitled to at least four weeks of paid annual leave per year. Our CCNL requires to provide 26 working days.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.