Gibson Watts Global: PEO & EOR Services

ITALY PEO & EOR

Hire in Italy without
a local entity today

As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.

Get started and hire in Italy today with Gibson Watts Global.

DID YOU KNOW
  • Innovation Meets Tradition – Italy is famous for its design, fashion, and engineering excellence, blending centuries-old craftsmanship with modern innovation.
  • Highly Skilled Workforce – Italy has a strong talent pool in industries like automotive, robotics, luxury goods, and tech, offering expertise across diverse sectors.
  • Creative Culture – With a rich cultural heritage, from art to cuisine, Italians bring creativity and problem-solving skills to business, fostering collaboration and innovation.

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this is expansion
with a human touch

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ITALY EOR Services

Accessing Southern Europe’s talent hub

Italy is one of Europe’s largest economies, with a highly skilled workforce and a strong manufacturing and service sector. However, local labor laws, payroll requirements, and social contribution obligations can be complex for foreign companies.

Partnering with Gibson Watts Global as your Employer of Record (EOR) in Italy allows businesses to hire and manage employees without establishing a local entity. The EOR handles payroll, contracts, benefits, and compliance with Italian labor laws, enabling companies to focus on their operations.

Working in ITALY

Financial Year Dates

The fiscal year runs from 1 January to 31 December.

Minimum Wage

Italy does not have a statutory national minimum wage. Minimum wages are determined by collective labor agreements within each sector.

Standard working hours

The standard workweek is 40 hours, typically divided into five 8-hour days.

Overtime

Overtime must be paid at a higher rate, typically between 25% and 60% above the regular hourly wage, depending on collective agreements. Overtime is limited to 250 hours per year for most sectors, though some exceptions exist.

Holiday Allowance

Employees are entitled to four weeks (20 days) of paid annual leave, in addition to public holidays.

Sick Leave

Employees are entitled to paid sick leave, usually compensated at 50–100% of regular salary depending on the length of absence and collective agreements.

Maternity & Paternity Leave

Maternity leave is 5 months (2 months before birth, 3 months after), paid at 80% of the regular salary. Fathers are entitled to 10 days of paid paternity leave.

Public Holidays

Italy observes the following national public holidays:

  • New Year’s Day
  • Epiphany
  • Easter Monday
  • Liberation Day
  • Labour Day
  • Republic Day
  • Assumption Day
  • All Saints’ Day
  • Immaculate Conception
  • Christmas Day
  • St. Stephen’s Day

Social Contributions

Italy has a comprehensive social security system funded by both employers and employees, covering pensions, healthcare, unemployment, and family benefits.

Employee Contributions

  • Pension: ~9.19% of gross salary
  • Unemployment insurance: ~1.61%
  • Health insurance and other social contributions: ~1%

Employer Contributions

  • Pension: ~23–33% of gross salary, depending on sector and collective agreements
  • Unemployment insurance: ~1%
  • Other social charges (healthcare, family benefits, occupational accident insurance): ~5–10% depending on sector

Income Tax

Italy applies a progressive personal income tax (IRPEF) as of 2025:

  • Up to €15,000: 23%
  • €15,001–€28,000: 25%
  • €28,001–€50,000: 35%
  • Above €50,000: 43%

Health Care

Italy provides universal healthcare funded through social contributions. Public services are supplemented by private health insurance, commonly offered by employers.

Visas

EU/EEA/Swiss Nationals: No work permit required.

Non-EU Nationals: Require a work visa. Common types include:

  • Employee Visa: For full-time employment
  • Seasonal Work Visa: For temporary or seasonal roles
  • Self-Employment Visa: For business owners and freelancers
  • Family Reunification Visa: For dependents of permit holders

13th salary?

Italy mandates a 13th-month salary, typically paid in December. Some sectors also provide a 14th-month salary in summer, depending on collective agreements.

Cultural Information

Italian culture emphasizes family, social connection, and regional identity. Meals are central to social life, with traditions varying by region. Art, music, and architecture are integral, reflecting Italy’s long history as a cultural hub. Italians value personal relationships, punctuality in business, and polite communication, blending formality with warmth.

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