Vatican City EOR & PEO
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DID YOU KNOW
- Vatican City is the smallest country in the world – both by area and population – covering just 0.44 square kilometres.
- It has its own postal service, radio station, and even an independent railway line that connects to Italy.
- The Vatican Library holds one of the most significant collections of historical manuscripts and books in the world, some dating back more than 1,000 years.
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While Vatican City is primarily known as the spiritual and administrative centre of the Roman Catholic Church, it also operates as an independent sovereign state with its own governance, employment laws, and tax systems.
Due to its unique status, hiring and managing staff in the Vatican is highly specialised and often involves coordination with the Holy See or affiliated institutions. Partnering with Gibson Watts Global as your Employer of Record (EOR) in Vatican City ensures that any employment activities, from payroll to compliance, are handled with precision and sensitivity to local requirements. We simplify the complex administrative landscape, enabling your organisation to focus on operations while maintaining full compliance with Vatican and Italian employment regulations.
Working in Vatican City
Financial Year Dates
The Vatican’s financial year runs from January 1st to December 31st.
Minimum Wage
There is no legislated national minimum wage. Wages for employees working under the Vatican’s jurisdiction are typically determined through internal regulations or aligned with comparable positions in Italy.
Standard working hours
The standard working week in Vatican institutions is 36 to 40 hours, generally spread across five days. Working hours can vary depending on the department or role.
Overtime
Overtime is compensated at higher rates according to internal employment rules, often similar to Italian labour law standards – typically 125% for extra hours and up to 150% for Sundays or holidays.
Holiday Allowance
Employees are generally entitled to at least 20 working days of paid annual leave, in line with Italian standards. Religious institutions may offer additional leave around significant Church celebrations.
Sick Leave
Employees receive paid sick leave, typically funded jointly by the employer and Vatican social systems. The length of paid leave depends on tenure and internal regulations.
Maternity & Paternity Leave
Female employees are entitled to maternity leave similar to that of Italian employees – usually five months (two before and three after birth) paid at 80% to 100% of regular salary. Fathers typically receive several days of paid paternity leave following childbirth.
Public Holidays
Vatican City observes a number of national and religious holidays, including:
- New Year’s Day
- Epiphany
- St. Joseph’s Day
- Easter Monday
- Ascension Day
- Saints Peter and Paul Day
- Assumption of Mary
- All Saints’ Day
- Immaculate Conception
- Christmas Day
- St. Stephen’s Day
Social Contributions
Social Contributions
Social security for Vatican employees is managed through the Vatican Social Security Fund (FAS), which covers pensions, healthcare, and welfare benefits.
Employers:
- Contribute approximately 25% of gross salary to social security and health insurance.
Employees:
- Contribute around 9% of gross salary.
These contributions ensure access to medical care, retirement pensions, and other social benefits either within Vatican institutions or via agreements with the Italian system.
Income Tax
Vatican employees are generally exempt from Italian taxation but contribute to the internal Vatican tax system. Non-Vatican citizens employed by Vatican entities may still be subject to their home country’s tax obligations, depending on tax treaties and residence status.
Income tax within Vatican employment structures is usually withheld at source and managed under internal fiscal guidelines established by the Holy See.
Health Care
Healthcare for Vatican employees is provided through the FAS system, which gives access to Vatican and Italian medical facilities. Many employees use hospitals and clinics in Rome under bilateral agreements between the Vatican and Italy.
Visas
Foreign nationals working in Vatican City require authorisation from the Holy See or affiliated institutions.
Common permits include:
- Religious Work Authorisation: For clergy, missionaries, and those employed in religious capacities.
- Administrative or Technical Work Permit: For lay employees or foreign specialists contracted by Vatican institutions.
- Diplomatic or Official Accreditation: For individuals working for the Holy See in international relations or diplomatic functions.
Due to Vatican City’s small size, these authorisations are processed in coordination with Italian immigration authorities.
13th salary?
The Vatican does not have a legal requirement for a 13th salary, but employees may receive an annual or Christmas bonus depending on their role or contract terms. Learn more here: 13th & 14th Salary – The Complete Guide.
Cultural Information
Vatican City is not only a religious epicentre but also a living museum of art, architecture, and history. It houses masterpieces such as Michelangelo’s Sistine Chapel ceiling and St. Peter’s Basilica, drawing millions of visitors each year.
Daily life within the Vatican revolves around faith, community, and tradition. Music, liturgy, and art are integral to the culture, with the Vatican’s choral and artistic heritage continuing to influence Catholic worship around the world.
Despite its formality, Vatican society remains close-knit and community-oriented, with shared meals, ceremonies, and a strong emphasis on service and spiritual purpose.