Currency: Euro (Rate)

Public Holidays: 12 public holidays (see here)

Employer Taxes: ~30% of gross salary

Official Language: Italian

Payroll frequency: Monthly

13th / 14th Salary: 13th (June) & 14th (December) for certain roles (managers / executives)

3 things to know about employing in Italy

  1. All employees receive severance pay (“Trattamento di Fine Rapporto") at the end of their employment. It accrues over their employment at a cost of 7% of gross salary to the employer
  2. The normal weekly working hour limit is 40 hours in Italy, but this does not apply to executives, managers and remote workers (working from home or another office)
  3. Italy has customary 13th and 14th salaries for some roles like managers & executives and some professions; one is paid at the time of the employee's summer holiday and one is paid at Christmas

Employment in Italy

Paid Holidays

All employees are entitled to a minimum of four weeks paid annual holiday.

Sick pay and time off

Sick pay and time off is defined in individual contracts & collective bargaining agreements.

Some sick pay is provided by the Italian state and some by the employer, the amounts depend on the length of service & business sector

Minimum Wage

There is no minimum wage but there are often minimum salaries set for certain sectors in Collective Bargaining Agreements.

Termination & Severance

At the end of any employment contract, even for just cause, and resignations, the employer must pay the “Trattamento di Fine Rapporto" which is a severance pay of all-time received salary divided by 13.5. It is an extra cost to the employer of ~7% per month.

An employer can terminate an employee based on two reasons: 1) Objective reason such as redundancy due to economic reasons or 2) Subjective reason such as a breach of their contractural duties.

If an employee believes they have been unfairly dismissed then they can go to an employment tribunal where paid damages for a typical case are between 3 to 6 months of salary.

Notice Period

There is no statutory notice period in Italy, but an agreed upon notice period must be included in employment and Collective Bargaining Agreements.

Working Hours


Overtime can not exceed 250 hours per year. Overtime must be compensated with increased salary.