GLOBAL EMPLOYER OF RECORD IN 190+ countries
Employer of Record in Italy
Move on critical hires in Italy while the business case for a permanent entity is still developing. Acumen acts as your Employer of Record, giving you the flexibility to build headcount now and take on the cost and commitment of incorporation only when it makes commercial sense.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
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Hiring and compliance support across North America, Europe, and Asia-Pacific.
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Lawful employment and payroll in regulated, compliance-intensive countries.
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Employer of Record in Italy: Italian hiring without an S.r.l.
An Employer of Record employs your Italian team on Italian contracts, under the right national collective agreement, and takes on the employer’s duties towards INPS, INAIL and the tax authorities. The employees work within your organisation, report to your managers and deliver your objectives.
Three ways to employ in Italy
| Route | What it takes | When it fits |
|---|---|---|
| Your own Italian company (S.r.l.) | A notarial deed, registration with the Companies Register, an INPS employer position, INAIL insurance, a mandatory employment ledger (Libro Unico) and usually an external labour consultant | A permanent Italian operation with a team that will grow |
| Registering as a foreign employer | An INPS position for an employer without an Italian establishment; contributions are paid, but income tax is not withheld at source and the CCNL, TFR and INAIL obligations stay with you | Companies with Italian payroll expertise and only a few hires |
| Employer of Record | A service agreement with Acumen International, which employs the team within the staff leasing framework | First hires, international recruits, project roles and the period before an S.r.l. is worth forming |
What the Employer of Record model gives you
- No notary, no company registration. You can make an offer as soon as the right candidate appears.
- Tax withheld through payroll. IRPEF and regional surcharges are deducted every month, so employees are not left to settle tax themselves.
- The right CCNL from the start. Agreement, grade, 13th and 14th month pay and TFR accrual are set correctly before the first payslip.
- Sponsorship for talent from abroad. Acumen International applies for EU Blue Cards, which sit outside the annual quotas, and other work authorisations as the employer.
- Exits that follow Italian procedure. Disciplinary steps, notice, the tax-free conciliation offer and TFR settlement are handled in line with the law.
Who does what
| Acumen International | Your company |
|---|---|
| Holds the Italian contract and applies the CCNL | Selects the candidate and defines the role |
| Runs payroll, IRPEF withholding, INPS and INAIL | Directs the daily work, objectives and performance |
| Accrues and pays TFR, 13th and 14th month pay | Decides pay reviews, bonuses and equipment |
| Files work authorisation and EU Blue Card applications | Shares the business reasons behind any change to the team |
| Manages disciplinary procedures, notice and exits | Approves the full cost of each hire before the offer |
The legal footing: staff leasing (somministrazione)
Italian law gives Employer of Record arrangements a clear home: supplying an employee to work under a client company’s direction is staff leasing (somministrazione di lavoro), regulated by Legislative Decree 81/2015. These rules shape every Italian hire:
Employer of Record in Italy within the staff leasing framework
Italian law gives Employer of Record arrangements a clear home: supplying an employee to work under a client company’s direction is staff leasing (somministrazione di lavoro), regulated by Legislative Decree 81/2015. These rules shape every Italian hire:
| Requirement | What it means for your Italian hire |
|---|---|
| Ministry authorisation | Staff leasing is carried out by an employment agency authorised by the Ministry of Labour and listed in its national register (Albo informatico delle Agenzie per il lavoro) |
| Written supply contract | The contract between provider and client is in writing and states the authorisation, the number of employees, the role, the risks of the job and the pay |
| Equal treatment | The employee receives pay and working conditions at least equal to those of comparable staff at your company |
| Shared responsibility | Your company is jointly liable with the provider for the employee’s pay and social security contributions, and is responsible for workplace safety where the work is done |
| Headcount limits | Supplied employees on open-ended contracts can make up to 20% of your permanent Italian staff, unless the collective agreement sets otherwise |
The operating split: Acumen International is the legal employer, holding the Italian employment contract, running payroll and paying INPS contributions, while your managers direct the day-to-day work. Because the employee is on an open-ended contract with the provider, the arrangement suits long-term roles as well as projects.
Employment in Italy at a glance
Last reviewed October 2026.
| Item | Italy |
|---|---|
| Currency | Euro (EUR) |
| Capital | Rome |
| Minimum pay | No single statutory minimum wage; pay floors are set by the national collective agreement (CCNL) for each sector and grade |
| Salary instalments | 13 a year as standard, 14 under some collective agreements |
| Severance fund (TFR) | Around 7.4% of annual pay set aside each year and paid out when employment ends |
| Employer social security | Around 30% of gross pay, varying by sector and company size, plus INAIL accident insurance |
| Employee social security | 9.19% of gross pay, plus 1% on pay above €56,224 a year |
| Income tax (IRPEF) | 23%, 33% and 43%, plus regional and municipal surcharges |
| Working time | 40 hours a week as standard; no more than 48 hours on average including overtime |
| Statutory annual leave | At least 4 weeks; most collective agreements add paid leave hours |
| Probation | Set by the collective agreement, up to 6 months |
| Notice | Set by the collective agreement, by grade and length of service |
| Unfair dismissal | Compensation of 6 to 36 months’ pay for employees hired since 7 March 2015 |
National collective agreements (CCNL) and pay in Italy
Italy has no single statutory minimum wage. The Constitution guarantees pay that is fair for the work done, and in practice the national collective agreement (contratto collettivo nazionale di lavoro, or CCNL) for the sector sets the floor. Choosing the right agreement and grade is the first decision in any Italian hire, because it fixes:
- Minimum pay for each grade (livello), reviewed when the agreement is renewed.
- The number of salary instalments, including whether a 14th-month payment applies.
- Probation and notice periods, which grow with grade and length of service.
- Working hours, overtime rates and paid leave hours on top of statutory annual leave.
- Sector benefits, such as supplementary pension and health funds.
Italian law also sorts employees into four categories: executives (dirigenti), middle managers (quadri), white-collar staff (impiegati) and blue-collar staff (operai). Executives have their own collective agreements, with longer notice and separate rules on dismissal, so senior hires are graded with particular care.
Widely used agreements include those for commerce and services, the metalworking and engineering industry, chemicals and pharmaceuticals, banking, and telecommunications.
TFR severance fund, 13th and 14th month pay in Italy
Two features of Italian pay surprise first-time employers, and both belong in the budget from the offer stage.
TFR (trattamento di fine rapporto). Every year, the employer sets aside annual pay divided by 13.5, around 7.4%, and revalues the balance at 1.5% plus 75% of inflation. The full amount is paid when employment ends for any reason, including resignation. Employees can leave their TFR with the employer or direct it to a supplementary pension fund; companies with 50 or more employees pay retained TFR into a fund managed by INPS. After eight years’ service, an employee can ask for an advance of up to 70% to buy a first home or cover major medical costs.
13th-month pay (tredicesima). Collective agreements provide an extra month’s salary, paid in December, so annual pay is quoted over 13 instalments.
14th-month pay (quattordicesima). Some agreements, including commerce and tourism, add a further month’s salary, usually paid in June or July.
A salary quoted as an annual gross figure already includes these instalments, which makes like-for-like comparison with other countries straightforward.
Employment contracts, probation and working time in Italy
- Written terms: every employee receives written information on the essential terms of employment, including the collective agreement, grade, pay, hours, leave and notice, as the Transparency Decree requires.
- Open-ended contracts: the standard form of employment in Italy, and the one candidates expect for permanent roles.
- Fixed-term contracts: allowed for up to 12 months without stating a reason, and up to 24 months where the collective agreement or the law provides a reason, with no more than four extensions.
- Probation: agreed in writing before work starts, with the length set by the collective agreement and capped at 6 months. Either side can end the contract during probation without notice.
- Working time: 40 hours a week as standard, with a weekly average of no more than 48 hours including overtime, at least 11 consecutive hours’ rest a day and a weekly rest day.
- Smart working: remote or hybrid work (lavoro agile) rests on an individual written agreement that sets where and when the employee works and their right to disconnect.
- Post-employment non-compete: valid only in writing, with compensation, and limited in scope, territory and time, to a maximum of 5 years for executives and 3 years for other employees.
Notice periods, dismissal and severance in Italy
Notice in Italy is set by the collective agreement rather than by statute. It depends on the employee’s grade and length of service, ranging from a couple of weeks for junior roles to several months for middle managers and executives. Where notice is not worked, it is paid in lieu.
An employer can end an open-ended contract only for a reason the law recognises:
- Just cause (giusta causa): misconduct so serious that employment cannot continue even during notice.
- Justified subjective reason: a significant breach of contractual duties, with notice.
- Justified objective reason: economic or organisational grounds, such as a role that no longer exists, with notice.
Conduct-based dismissals follow a disciplinary procedure: the charge is set out in writing and the employee has at least 5 days to respond. Every dismissal is made in writing with its reasons, and the employee has 60 days to challenge it.
For employees hired since 7 March 2015, a dismissal found unjustified usually leads to compensation of 2 months’ pay per year of service, between 6 and 36 months, rather than reinstatement. Reinstatement remains the remedy for discriminatory, retaliatory or oral dismissals. Within 60 days of a dismissal, the employer can offer a tax-free settlement of 1 month’s pay per year of service, between 3 and 27 months; if the employee accepts, the matter is closed.
Whatever the reason for leaving, the employee receives their accrued TFR, unused leave and the pro-rata 13th and 14th month payments. Dismissals also trigger an INPS contribution towards unemployment benefit for each year of service, up to three years. Employers with more than 15 employees that plan 5 or more redundancies within 120 days follow the collective dismissal procedure with union consultation, and employees who resign do so through the Ministry of Labour’s online procedure.
Employment risk mitigation in Italy
| Risk | Where it arises | How Acumen International mitigates it |
|---|---|---|
| Worker misclassification | Freelancers on a VAT number, or collaborators whose work the client organises, are treated as employees by law, with INPS contributions and penalties due on the past work | Each freelance role reviewed and moved onto Italian employment where the client sets the hours, place and method of work |
| Staff leasing compliance | Authorisation, a written supply contract and headcount limits; where these are missing, the employee can claim employment with the client | Every assignment documented within the authorised framework and tracked against the limits |
| Equal treatment and joint liability | Pay and conditions of comparable staff at the client; the client shares liability for pay and contributions | Pay set against your own comparable roles, with salaries and INPS contributions paid on schedule each month |
| CCNL and grade | An unsuitable agreement or grade leads to claims for back pay, extra instalments and TFR differences | Agreement and grade matched to the real duties before the offer goes out |
| Dismissal | Recognised grounds, written reasons, the disciplinary procedure and compensation of 6 to 36 months’ pay | Grounds, procedure and any settlement offer planned with you before a dismissal is decided |
| Employee monitoring | Software and devices that can track staff remotely need a union agreement or labour inspectorate approval under the Workers’ Statute | Laptops, apps and tracking tools checked against the Workers’ Statute before they are issued |
| Inventions and IP | Inventions made in the course of duties belong to the employer, with fair compensation owed where inventive work is not specifically paid; software written on the job belongs to the employer | Ownership of inventions, software and other work assigned to your company through the employment contract and service agreement |
| Taxable presence | Italian staff who habitually conclude contracts for your company can create a permanent establishment (stabile organizzazione) | Signing and negotiating authority defined for each Italian role and reviewed with your tax adviser |
| Health and safety | A risk assessment is required before supplied employees start, and the client is responsible for safety where they work | Safety training and the workplace risk assessment confirmed before the first day |
| Residence permits | A Blue Card holder is tied to the original role for the first 12 months, and a change of employer needs approval | Promotions, transfers and contract changes cleared against the permit before they take effect |
Hiring international talent in Italy: EU Blue Card and work permits
In Italy, the employer starts the work permit process by applying to the immigration office (Sportello Unico per l’Immigrazione) for a work authorisation (nulla osta). The route depends on the role and the candidate:
| Route | Best suited for | Key conditions |
|---|---|---|
| EU Blue Card | Graduates with at least a three-year degree, and ICT managers and specialists with 3 years’ relevant experience in the last 7 | Outside the annual quotas; a contract or binding offer of at least 6 months; salary at least the CCNL rate and the ISTAT average gross annual salary |
| Special cases outside the quotas | Executives and highly specialised staff, intra-company transferees, university lecturers and researchers | Applications accepted all year round |
| Quota-based work permit | Other skilled and semi-skilled roles | Places set by the three-year quota decree for 2026–2028, with applications opening on fixed dates each year |
| EU, EEA and Swiss nationals | Free movement | No permit required; registration with the town hall for stays over 3 months |
For the EU Blue Card, the work authorisation is issued within 30 days. The employee then obtains a visa from the Italian consulate and, after arrival, signs the residence contract and applies for the residence permit. Blue Card holders can bring their family regardless of the permit’s length, and after 12 months they can change employer freely.
Cost of employing in Italy: INPS contributions and IRPEF
Most of the employer’s cost on top of salary goes to INPS, the national social security institute, with the TFR accrual and INAIL accident insurance added on top.
| Contribution (2026) | Employer | Employee |
|---|---|---|
| INPS pension contribution | 23.81% | 9.19%, plus 1% on pay above €56,224 a year |
| Other INPS contributions (unemployment, family allowances, sickness and maternity, wage guarantee funds) | Around 5–8%, depending on sector and company size | None |
| INAIL accident insurance | Set by the risk class of the job | None |
| TFR severance accrual | Annual pay divided by 13.5, around 7.4% | None |
| Supplementary pension and health funds | As set by the collective agreement | As set by the collective agreement |
Pension contributions stop at €122,295 of annual pay for employees first insured from 1996 onwards.
Income tax. IRPEF is withheld monthly through payroll at 23% on income up to €28,000, 33% from €28,000 to €50,000 and 43% above €50,000, after the 2026 budget law cut the middle rate from 35%. Regional and municipal surcharges are added on top and vary by where the employee lives.
Tax incentive for people moving to Italy. Highly qualified professionals who become tax resident in Italy after at least three years abroad can have 50% of their employment income exempted from tax, or 60% with a dependent child, on up to €600,000 a year for five years, provided they stay resident for at least four years. This can make an Italian offer far more competitive for a candidate relocating from abroad.
The Global Payroll Calculator shows the full cost of an Italian salary, with INPS, INAIL, TFR and the extra monthly instalments included, drawing on Acumen International’s 1,500-plus official sources checked with local lawyers and accountants.
Where Italian demand for specialists is growing
Italy is the EU’s second-largest manufacturing economy, built on regional clusters of family-owned and mid-sized companies that export worldwide. Specialists are often hired close to those clusters rather than in the capital.
| Sector | Roles in demand |
|---|---|
| Machinery and industrial automation, in Lombardy, Emilia-Romagna and Veneto | Automation, mechanical and field service engineers |
| Automotive, motorsport and aerospace, around Turin and Emilia-Romagna’s Motor Valley | Vehicle software, electrification and aerospace engineers |
| Fashion, luxury and design, centred on Milan and Florence | Brand, retail operations, e-commerce and supply chain managers |
| Pharmaceuticals and life sciences, in Lombardy, Lazio and Tuscany | Clinical, regulatory, quality and production specialists |
| Energy transition and infrastructure | Renewable energy, grid and project engineers |
| Banking, insurance and fintech, centred on Milan | Risk, compliance, data and software specialists |
Why companies hire in Italy with Acumen International
- Start trading before setting up an S.r.l. Hire a first sales or engineering team in Italy and build revenue while you decide whether a local company is worth forming.
- Hire next to the right cluster. Employ an automation engineer in Bologna or a product designer in Florence without opening an office there.
- Put freelancers on a secure footing. Move long-term contractors on VAT numbers onto Italian employment under the correct collective agreement and grade.
- Hold teams together through a deal. Keep acquired or carved-out Italian staff employed on their existing terms while the long-term structure is settled.
- Relocate talent with one partner. Combine the Italian employment contract and the EU Blue Card application under a single provider that acts as sponsor.
- See the full Italian cost up front. TFR, extra monthly instalments and INPS contributions are costed and the legal route agreed before the offer is made.
- Grow beyond Italy without changing provider. Founded in the UK in 2000 and working in more than 190 countries, Acumen International can employ your people in Italy and elsewhere under one agreement, carrying the employer’s obligations in each country.
Employee benefits and payroll in Italy
Italian candidates compare the whole package, not just the gross salary. Meal vouchers (buoni pasto) are expected in many office roles, and supplementary health cover, a company welfare plan, a performance bonus and a company car for sales and senior roles are common additions. Welfare plans are popular because employee benefits such as childcare, education and healthcare can be provided free of tax and contributions, and fringe benefits are tax-free up to €1,000 a year, or €2,000 for employees with dependent children. Every package is tailored to the role and the candidate, on top of the collective agreement.
Payroll. Salaries are paid monthly, with the 13th and any 14th month paid in their usual months. Each month, Acumen International issues the payslip, records the pay in the mandatory employment ledger (Libro Unico del Lavoro), reports contributions to INPS and pays tax and contributions by the 16th of the following month. After the year end, it issues each employee’s annual tax certificate (Certificazione Unica).
Annual leave and statutory leave in Italy
| Leave | Entitlement | Pay |
|---|---|---|
| Annual leave | At least 4 weeks; at least 2 weeks taken in the year earned and the rest within the following 18 months | Employer, full pay |
| Paid leave hours (ROL and former holidays) | Extra hours each year, as set by the collective agreement | Employer, full pay |
| Public holidays | 12 national holidays, including St Francis’ Day on 4 October from 2026, plus the local patron saint’s day | Employer, full pay |
| Maternity leave | 5 months, usually 2 before and 3 after birth, or all 5 after birth on medical advice | 80% from INPS, often topped up to full pay under the collective agreement |
| Paternity leave | 10 working days, or 20 for multiple births | 100% from INPS |
| Parental leave | Up to 10 months between both parents until the child turns 12, or 11 months if the father takes at least 3 | Partly paid by INPS, with some months at 80% of pay |
| Sick leave | As certified by a doctor, with the job protected for the period set by the collective agreement | INPS allowance from the fourth day, topped up by the employer under the collective agreement |
| Marriage leave | 15 calendar days | Paid under the collective agreement |
| Care for a relative with a severe disability | 3 days a month | 100% from INPS |
Sources
- National register of employment agencies
- Legislative Decree 81/2015: employment contracts and staff leasing
- Legislative Decree 23/2015: open-ended contracts with increasing protection
- Law 604/1966: individual dismissals
- Workers’ Statute (Law 300/1970)
- Civil Code, article 2120: TFR
- Legislative Decree 66/2003: working time
- Legislative Decree 151/2001: maternity, paternity and parental leave
- Budget Law 2026 (Law 199/2025)
- INPS contributions 2026: minimums and ceilings
- Legislative Decree 209/2023: tax regime for new residents
- Consolidated Immigration Act, article 27-quater: EU Blue Card
- Entry quotas for foreign workers 2026–2028
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
How can we build a competitive benefits package for an employee in Italy?
Acumen can combine the mandatory employment benefits in Italy with supplementary benefits selected for the role, seniority and talent market. This is particularly useful for senior, specialist or hard-to-hire positions where a statutory-only package would not be competitive.
Can an Employer of Record support an acquisition, divestiture or business transition in Italy?
Yes, where the proposed transfer is locally feasible. Acumen can provide an interim employing structure in Italy while a buyer establishes an entity, a seller separates a workforce, or a new operating model is put in place. Employee-transfer rules and consultation obligations must be assessed for the specific transaction.
Does using an Employer of Record remove permanent establishment risk in Italy?
No. An Employer of Record solves the local employment requirement, but permanent establishment risk depends on what the employee does for the client in Italy, including authority, commercial activity and the way the business operates locally. Acumen can flag the employment-side risk factors so the client can assess the corporate tax position with its advisers.