Hiring Employees in Italy
Italy does not have a national minimum age set by law, but instead, minimum wages are determined by collective bargaining agreements (CBAs) within specific industries.
Income tax ranges for individuals vary between 0% and 43% depending on gross annual income, although other factors such as the household status and number of children may impact the rate of tax that is paid.
In Italy, both employers and employees contribute to the national pension system (INPS), with the employer paying around 30% of the employee’s gross annual salary and employee’s paying around 10%.
On average, a full-time working week is 40 hours per week, Monday to Friday between 9am and 5pm.
Overtime is permitted for work exceeding 40 hours per week, but this must be compensated, and the maximum working hours including overtime cannot exceed 48 hours per week on average over a four-month period.
Employee’s leave consists of several types:
- Statutory time off or paid leave, which is 20 days per year for full-time employees
- Public holidays (there are 12 national and 10 regional public holidays per year in Italy)
- Maternity, Paternity and Parental leave
- Sick leave
Termination of an employment contract in Italy can occur in various ways:
- Resignation by the employee
- Dismissal for just cause
- Dismissal for a justified reason
- By mutual agreement