# Hire in Italy

Source: https://overseashire.com/hire/italy · verified 2026-10-05 · confidence medium

Strong engineering, design and manufacturing skills with competitive salaries relative to northern Europe. Employment costs are high and tied to collective agreements, and there is no national minimum wage.

## Employer cost
Employer on-costs 30–45% of gross salary. Low = about 30% employer social security (PwC: overall burden ~40% with ~30% employer, ~10% employee; varies by category, sector and size). High is derived: add TFR severance accrual (~6.91% of annual gross) and the statutory 13th month (8.33%) = ~45%; secondary sources quote 45-55% total employer cost over gross salary when INAIL, 14th month and collective-agreement items are included. Excludes paid leave.

| Contribution | Rate | Notes |
|---|---|---|
| INPS social security (employer) | ~30% of gross remuneration (29-32% by sector and size) | Employee share ~10%. Rates vary by category, sector and firm size. |
| TFR (trattamento di fine rapporto) accrual | ~6.91% of annual gross | Accrued every year and paid at termination for any reason; secondary source. |
| INAIL (work injury insurance) | varies by risk class | Rate not verified. |
| 13th month (tredicesima) | 1/12 of annual pay | Effectively universal, paid in December; a 14th month depends on the CCNL. |

Mandatory benefits: 13th month salary; TFR severance accrual; Minimum 4 weeks' annual paid leave; CCNL-based extras: 14th month, supplementary health, meal vouchers; Maternity leave (5 months) with INPS allowance

## Rules
- Payroll: Monthly; 13th month in December, 14th (where provided) in June/July
- Probation: Up to 6 months by law (Civil Code art. 2096), fixed by the CCNL by role.
- Notice and severance: Notice is set by the applicable national collective agreement (CCNL) by seniority and grade (commonly 15 days to several months). TFR is paid on exit. Dismissals without cause carry indemnity or reinstatement depending on hire date and firm size.
- Termination: Dismissal requires just cause (giusta causa) or justified reason (giustificato motivo), with a formal procedure and written reasons. Post-2015 hires have an indemnity scale for unjustified dismissal, since adjusted by the Constitutional Court. Check the CCNL.
- Working time: 40 hours per week standard, with a 48-hour weekly maximum including overtime averaged over four months; the CCNL may set lower hours and overtime premiums.
- Paid leave: At least four weeks' paid annual leave (D.Lgs. 66/2003) plus about 12 public holidays; CCNL often adds days (general knowledge).
- Minimum wage: not verified

## Contractors
Freelancers (partita IVA) are common, but misclassification as parasubordinate (co.co.co.) or employees risks claims and sanctions. Gestione Separata contributions apply to the self-employed (24-35.03% in 2026 per PwC). Moderate to high risk.

## EOR
A foreign company needs an Italian entity or an EOR. The correct CCNL is critical because pay floors and benefits come from it. Timelines not verified.
Onboarding: EOR not verified; own entity not verified.

## FAQ
**What is the employer social security rate in Italy?** About 30% of gross salary (PwC), varying by sector and size, plus INAIL and TFR.

**Is there a minimum wage?** No statutory minimum; pay floors come from the applicable CCNL.

**What is the TFR?** A severance accrual of roughly 6.91% of annual gross, paid at termination for any reason.

**Is the 13th month mandatory?** Effectively yes; the 14th depends on the CCNL.

Unverified: INAIL rates; Itemised INPS rates by sector; Whether a national minimum wage law has been adopted in 2026; Probation, leave and notice details from general knowledge; CCNL specifics; Post-2015 dismissal indemnity scale; EOR/entity timelines

Sources:
- https://taxsummaries.pwc.com/italy/individual/other-taxes
- https://employsome.sda.company/?p=6835
- https://yourincomecalculator.com/it/blog/tredicesima-quattordicesima-italy-extra-salary-2026
- https://remotepass.com/country/italy/taxes

Not legal or tax advice.