--- title: "Hiring in Italy 2026 | Employer of Record Guide" description: "Hire in Italy through Teamed's EOR. 30% employer INPS, 4 weeks statutory leave, a mandatory 13th-month salary, and TFR severance from day one. The Italy guides, one per layer." canonical: https://www.teamed.global/country-hiring-guides/italy --- Italy · Country overview Served by Teamed via an Italy-registered EOR entity # What do you need to know to hire in *Italy*? Italy pays a mandatory tredicesima (13th-month salary) in December, accrues TFR severance from day one of employment, and sets notice periods by sector agreement rather than by statute. Each guide below takes one layer. Last reviewed 13 June 2026 · Italy guide ## How does Teamed handle Italian hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Italy for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, TFR accrual, CCNL compliance, and the full Italian employment law stack run on **one platform**. **Real HR and legal experts** manage every Italian hire, from the first offer letter to the final TFR settlement. **An actual person**, not a chatbot or a pooled queue, handles your Italian team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. An Italian contractor who converts to PAYE keeps their record, and that same employee can **graduate** from EOR to your own Italian S.r.l. without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Italian hire, **until it isn't**. Three things you won't find on any other Italy EOR guide - **TFR (Trattamento di Fine Rapporto) accrues from day one.** Italy's severance pot builds throughout employment at roughly one month of gross salary for every 13.5 months worked. It is owed on every termination, regardless of reason or length of service. [The termination guide](/country-hiring-guides/italy/termination-and-severance) runs the full calculation. - **Italy has no national statutory minimum wage.** Pay floors are set entirely by sector-specific national collective bargaining agreements (CCNLs). The CCNL for your industry governs minimum pay, notice periods, and some leave entitlements. There is no single number that applies across all employers. - **The tredicesima is a mandatory 13th-month salary payment.** Every Italian employer must pay a full extra month's salary at Christmas, and many sectors also require a 14th summer instalment. US buyers who budget based on 12 months will undercount total payroll cost by around 8 percent. Answer.cite this Hiring in Italy adds roughly 30% in employer INPS contributions on top of gross salary. TFR (Trattamento di Fine Rapporto) accrues alongside payroll as a separate severance reserve. A mandatory tredicesima brings the standard payroll cycle to 13 monthly payments a year. Statutory annual leave is 4 weeks, on top of 12 national public holidays. Teamed runs Italian payroll, contracts, and compliance through an EOR entity with the required Italian registrations. This page is the map. Each guide below is the detail. At a glance · Italy EUR · Italian · Monthly payroll Currency EUR € Employer INPS 30% approx., varies by sector and classification Employee INPS 9.19% standard rate up to earnings ceiling Annual leave 4 weeks statutory minimum, excluding public holidays Public holidays 12 national; plus local patron saint days 13th month Yes tredicesima, paid at Christmas Top income tax 43% IRPEF, above EUR 50,000 Notice period CCNL set by sector agreement, not statute ![A wide illustration of Rome at golden hour: the Colosseum in the foreground, the Roman Forum stretching behind it, umbrella pines along the skyline, and a warm amber sky above the city.](/images/country-guides/italy-hiring.webp) Italy · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in Italy in 2026? A typical Italian hire costs 130 to 140 percent of gross salary once INPS contributions and the tredicesima are included. Employer INPS runs at approximately 30% and TFR accrues separately throughout employment. Employer INPS contributions run at approximately 30% of gross salary. The tredicesima adds a full extra monthly salary, paid at Christmas. Many sectors add a 14th salary instalment in summer. TFR accrues at roughly annual gross divided by 13.5 for each year worked. It is not a monthly cash cost but it is a real liability that settles on termination. Teamed's Italy price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, INPS, TFR accrual, and benefits passed through at cost on every invoice. The full breakdown, with worked examples at current rates, is in the cost guide. [Read the full Italy cost breakdown](/country-hiring-guides/italy/cost-breakdown) ## Do you need an Italian entity to hire employees in Italy? No. An Employer of Record runs Italian payroll and contracts from day one. Your own Italian S.r.l. becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary and CCNL. Forming an S.r.l. in Italy requires at least EUR 10,000 in share capital, a notarised deed, and registration with the Registro delle Imprese (Companies Register). Setup takes six to ten weeks. Once live, ongoing payroll, accounting, and statutory filings add to the cost. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount. Teamed runs Italian payroll, contracts, and CCNL compliance from day one. The crossover point depends on Italian salary levels, the applicable CCNL, and your accounting costs. The EOR vs entity guide runs those numbers with Italian worked examples. Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Italian entity on **one platform** under Teamed's Graduation Model, with tenure and TFR records preserved. [Read the full Italy EOR vs entity guide](/country-hiring-guides/italy/eor-vs-entity) ## What are the key employment law rules in Italy in 2026? The 2026 Budget Law (Law 199/2025) cut the IRPEF band 2 rate from 35 percent to 33% and extended parental leave improvements introduced in recent years. Italy has no national statutory minimum wage. The Mindestlohn debate has not yet produced legislation. Minimum pay is governed entirely by the applicable CCNL. The 2026 Budget Law restructured IRPEF into three bands: 23% up to EUR 28,000; 33% from EUR 28,001 to EUR 50,000; and 43% above EUR 50,000. Italy taxes income from the first euro. There is no personal allowance; instead, deductions (detrazioni) reduce the tax bill. The compliance guide covers the current payroll obligations in detail. Probation is capped at 6 months under the Civil Code. During probation, either party can end the contract without notice. The hiring guide covers day-one obligations, written contract requirements, and how to choose the right CCNL. [Read the full Italy hiring guide](/country-hiring-guides/italy/hiring-guide) ## What benefits must you provide Italian employees in 2026? The statutory floor is 4 weeks of paid annual leave, 10 days of mandatory paternity leave at full pay, and five months of maternity leave at 80% of salary. INPS pays sick pay after a three-day waiting period, rising from 50% to 66.67% after day 20. Statutory annual leave is 4 weeks under Legislative Decree 66/2003. Italy counts annual leave and public holidays separately. There are 12 national public holidays, plus local patron saint days that vary by city. Maternity leave is five months of mandatory absence, paid by INPS at 80% of salary. Mandatory paternity leave is 10 days, paid at 100% of salary by INPS. Either parent may then take optional parental leave (congedo parentale) of up to six months each, paid by INPS at 30% of salary for children under six. INPS sick pay starts on day four (the first three days are a waiting period at most employers). It pays at 50% from days 4 to 20, then 66.67% from days 21 to 180 days. Most CCNLs require employers to top up INPS sick pay to full salary for a defined period. The benefits guide covers each entitlement and the employer obligations. Read the full Italy benefits guide ## What are payroll taxes in Italy in 2026? Employer INPS contributions run at approximately 30% of gross salary. Employee INPS is 9.19% up to the annual earnings ceiling, plus IRPEF income tax on a three-band scale. Italian social security (INPS) bundles pension, sickness, maternity, and unemployment contributions into one rate. The employer share is approximately 30%, though the actual rate varies by sector, CCNL, and employee classification. The employee share is 9.19% up to the annual pensionable earnings ceiling. Contributions apply up to a cap (EUR 122,295 in 2026 for post-1996 registrants). You see every INPS line itemised on each payslip and invoice. IRPEF income tax applies at 23% up to EUR 28,000; 33% from EUR 28,001 to EUR 50,000; and 43% above EUR 50,000. Italy uses detrazioni (tax credits) rather than a personal allowance. Payroll IRPEF withholding is remitted via F24 by the 16th of the following month. The tax and payroll guide sets out every band, threshold, and filing deadline. [Read the full Italy tax and payroll guide](/country-hiring-guides/italy/tax-and-payroll) ## How do you terminate an employee in Italy? Italy requires a written, justified dismissal for all employees hired after March 2015. TFR (Trattamento di Fine Rapporto) is owed on every termination from day one of employment, whatever the reason. Every Italian termination requires a written notice and a stated reason (personal conduct, capability, or operational need). During probation, up to 6 months, either party may end the contract immediately with no notice required. After probation, notice periods are set by the applicable CCNL: for commercial sector managers (Quadri), notice is 60 days up to five years of service, 90 days from five to ten years, and 120 days above ten years. TFR accrues throughout employment. On termination it is paid out in addition to any notice payment. Employers with more than 15 employees must follow the collective redundancy procedure (Law 223/1991) when dismissing five or more employees within any 120 days period. Phase one consultation runs 45 days and the total process can reach 75 days. The termination guide runs the full process. [Read the full Italy termination and severance guide](/country-hiring-guides/italy/termination-and-severance) ## What should you know before hiring in Italy? Two things catch US buyers out. The first is TFR: it is not an optional benefit, it is a statutory liability that starts accruing from the first day of work. The second is that Italy has no national minimum wage, so the CCNL for your sector sets the pay floor, the notice scale, and some leave obligations. **TFR is a real cash liability, not a pension contribution.** It accrues at annual gross salary divided by 13.5 for each year worked, with no cap on total accumulation. When an employee leaves for any reason, the full accrued TFR is owed. Most US buyers budget payroll without it and discover the liability at termination. The cost breakdown guide includes TFR in every worked example. **The right CCNL changes your cost and obligations materially.** Italy has over 900 active collective agreements. The applicable one determines minimum pay, notice periods, sick pay top-up, and some leave rules. Choosing or confirming the correct CCNL at the point of hire is not optional. Teamed identifies the correct CCNL for every Italian role at onboarding. The hiring guide covers the classification process in full. [Read the full Italy hiring guide](/country-hiring-guides/italy/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Italy? Plan on 130 to 140 percent of gross salary once employer INPS contributions at approximately 30% and the mandatory tredicesima are included. TFR accrues separately as a severance liability. Teamed's Italy fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples. Can a US company hire in Italy without an entity? Yes. An Employer of Record like Teamed runs Italian payroll, contracts, and CCNL compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Forming your own S.r.l. takes six to ten weeks and requires EUR 10,000 in share capital. What is TFR and when is it paid? TFR (Trattamento di Fine Rapporto) is Italy's statutory severance pot. It accrues from the first day of employment at annual gross salary divided by 13.5 for each year worked. It is owed on every termination regardless of reason or length of service. There is no cap on total TFR accumulation. It is settled in full when the employee leaves. Does Italy have a statutory minimum wage? No. Italy has no national statutory minimum wage. Pay floors are set entirely by the applicable national collective bargaining agreement (CCNL) for the employee's sector and job category. The EU Minimum Wage Directive has not yet forced Italy to introduce a statutory rate. The correct CCNL must be identified at the point of hire. What are Italian statutory notice periods? Italy has no single statutory notice period. Notice is governed by the applicable CCNL and varies by sector, employee category, and seniority. For commercial sector managers (Quadri), notice is 60 days up to five years of service, 90 days from five to ten years, and 120 days above ten years. During probation, no notice is required. What is the minimum annual leave for an Italian employee? The statutory minimum paid annual leave is 4 weeks under Legislative Decree 66/2003. Italy counts annual leave and public holidays separately. There are 12 national public holidays, plus local patron saint days. Employers can grant more leave by contract or CCNL. Teamed Legal Operations Italy looks complicated and it is, but the logic follows once you understand two things: TFR accrues from day one and the CCNL for the sector sets everything the statute does not. US buyers who treat Italy like an at-will market run into both on the way out. These guides exist so the first Italian hire does not become the first Italian labour tribunal claim. A note from Tom Price-Daniel Italy's employment rules are predictable once you know them. TFR builds from day one. The tredicesima adds a month of salary at Christmas. The CCNL for your sector sets the notice scale. Most of the cost surprises in Italy come from not reading those rules before the first hire. Read the right Italy guide before that hire, not after the first TFR calculation. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Italy hiring guide, offer to payslip](/country-hiring-guides/italy/hiring-guide)guide - [Italy employer cost breakdown 2026](/country-hiring-guides/italy/cost-breakdown)guide - [EOR vs entity in Italy](/country-hiring-guides/italy/eor-vs-entity)guide - [Italy termination and severance](/country-hiring-guides/italy/termination-and-severance)guide - [Italy tax and payroll](/country-hiring-guides/italy/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/italy)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Agenzia delle Entrate, INPS, and the Ministero del Lavoro e delle Politiche Sociali for Italy, or speak to a qualified professional, before relying on any specific framework.