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Italy PEO & Employer of Record

Expand your organization into Italy with or without an Italian entity

The Mediterranean country of Italy is famous for its rich history, culture, and high standards of living. Italy’s economy is also impressive, ranked eighth in the world in terms of nominal GDP, and composed of a diverse range of successful industries from agriculture to manufacturing, luxury goods, financial services, and many others. For these reasons and more, Italy is a popular country for foreign businesses to expand.

If your company is planning an expansion into Italy, then you should be prepared for a complex process. While the rewards are worth it, Italy’s unique business and employment regulations, cultural customs, and language can all result in delays to any expansion efforts.

At Horizons, we help organizations of all kinds to expand abroad, including into Italy. Our professional employer organization (PEO), employer of record, and payroll services can provide your organization with everything you need to begin your Italian expansion in a matter of just days, not the weeks or months it could otherwise take, even if you don’t have an established entity in the country.

And as the only Italy PEO & Employer of Record with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Italian workforce, along with any ongoing HR and compliance admin. Our bespoke services can save you thousands in expansion costs and provide you with a faster route into Italy.

How can Horizons help you expand into Italy?

Horizons enables your business to expand its operations into Italy, even if you don’t have an Italian subsidiary

Rapid Market Entry

Horizons will enable you to source, hire, and onboard professionals across Italy in as little as 48 hours.

Cost-Effective Expansion

Our Italy PEO solution can help you benefit from cost savings of up to 85%, without the need to establish an Italian entity.

Payroll Outsourcing

Simplified Italian salary & payroll processing, including social security payments, tax, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Italian labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Italy-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Italy’s labor laws and best practices.

Hiring in Italy: Employment law overview

📝 Employment contracts in Italy

In Italy, employers are legally required to produce formal employment contracts for all workers. These contracts should always include any relevant details of the role, such as salary/wage, working hours, benefits, and entitlements. They should also be written in Italian and use the currency of the Euro.

⏰ Working hours in Italy

A normal working week in Italy is 40 hours long, made up of five eight-hour days, usually Monday to Friday.

📅 Public holidays in Italy

1 Jan
New Year’s Day
6 Jan
La Befana
19 Mar
Father’s Day
12 Apr
13 Apr
Easter Monday
25 Apr
Liberation Day, Feast of St. Mark
28 Apr
Sardinia’s Day
1 May
Labour Day
10 May
Mother’s Day
2 Jun
Republic Day
24 Jun
Feast of St. John the Baptist
29 Jun
Saint Peter and Saint Paul
15 Jul
Feast of St. Rosalia
15 Aug
19 Sep
Feast of St. Gennaro
4 Oct
Feast of St. Petronius
1 Nov
All Saints’ Day
2 Nov
Feast of St. Giusto
6 Dec
Feast of St. Nicholas
7 Dec
Feast of St. Ambrose
8 Dec
Immaculate Conception Day
25 Dec
Christmas Day
26 Dec
St. Stephen’s Day

🏖 Vacation leave in Italy

Employees in Italy are entitled to a minimum of 20 days of paid vacation leave from work. This is based on a five-day working week.

💸 Bonuses in Italy

An annual ‘13th-month’ bonus payment is regularly given to employees in Italy, although it is not legally required. The payment is usually given around Christmas.

😷 Sick leave in Italy

Employees in Italy are entitled to at least three days of paid sick leave if they present a medical note. Employees may be able to take up to two years for serious illnesses or family issues.

👶 Parental leave in Italy

Female employees in Italy can take two months before and three months after giving birth. During this time, they receive 80% of normal salary. Male employees can take one day of paternity leave, however, they can also take up to two days of the mother’s leave if mutually agreed upon.

💰 Terminations and severance in Italy

Employers in Italy can only terminate employees in specific circumstances, such as breaches of the employment contract or for economic reasons, and there are strict procedures to follow in most cases, so it is important to fully understand the regulations relevant to your specific situation.

Employees are also entitled to a payment at the end of their service, called the TFR, for which an employer must withhold 7% of pay.

🏦 Taxation in Italy

Both employees and employers in Italy generally need to contribute toward social security funds. For employees, the contribution is roughly 10% of salary, and for employers, it is roughly 35%.

Income tax is progressively scaled in Italy, with rates ranging from 23% to 43% depending on income.

The corporate tax rate in Italy (called IRES) is 24%, but businesses are also usually required to pay a regional production tax (IRAP) of 3.9%.

🏥 Health coverage in Italy

Italy has public healthcare, so businesses do not need, nor are expected to, offer private medical insurance. However, some employers do choose to offer private medical benefits.

💳 Italy compensations & benefits

Compensation laws in Italy

There is no fixed minimum wage in Italy. Instead, collective bargaining agreements are usually in place to dictate wages for specific industries/roles.

Benefit management in Italy

Setting up a system of employee benefits for your employees in Italy can be difficult. The complex regulations and organization can require a lot of time, effort, and investment on the part of employers.

Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At Horizons, our Italy Employer of Record & PEO and employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.

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