Italy

Hiring in Italy typically involves four approaches. You can pay through your HQ for short-term arrangements, engage contractors (lavoro autonomo) for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Each option carries different compliance, cost, and administrative effort. However, an EOR allows compliant employment in Italy without establishing a local entity.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Italy, employment is the right structure under Italian law, covering entitlements like paid annual leave, sick leave, and INPS social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Italy.

HR compliance in Italy means your policies and procedures respect all applicable Italian employment laws and regulations. When you hire in Italy, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (22 days), pay set by national collective bargaining agreements, tax credits, and a 40-hour working week. Following these is fundamental for running the business well.

An Employer of Record is the legal employer of the individual in Italy for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 5 months of maternity leave and 22 days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including Italy. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

Both employers and employees in Italy pay social security contributions. Employers contribute 28-33% of gross salary, while employees contribute around 9-10%, depending on sector and applicable collective agreement. Employees also pay progressive income tax of 23-43% based on salary. To get a clear overview of both employee and employer taxes, use the salary breakdown calculator.