Employer of Record Guide in 

Italy

Your EOR guide in Italy

An agency-based hire involves two agreements: the commercial arrangement between your company and the agency, and the employment contract between the agency and the worker. The assignment has its own scope and duration. Ending the commercial service does not automatically end employment.

Confirm both the employment terms and the client-use conditions. These can depend on the contract type, assignment history, applicable collective agreements and workforce limits or exemptions. The Ministry's 2025 circular removed the former blanket duration exemption for certain fixed-term assignments of agency employees hired indefinitely. An open-ended employee contract is therefore not proof of an unlimited client assignment.

Use Pay & Tax to build the quote, Onboarding to prepare the start, and Other to check route suitability and responsibilities. Leave Policy, Termination and Statutory Time Off explain the employment terms your managers will need to operate.

Pay & Tax

What an Italy EOR quote should include

Request the employment budget in euros, with the service fee shown separately and its currency stated. A monthly EOR fee is only one part of the cost.

Employee income tax and the employee's contribution share are withheld from gross pay; do not add them again as employer costs. If annual salary already includes the required thirteenth or fourteenth instalment, do not add the same pay a second time.

Ask the agency to identify the charges that arise from its employment route. Italy's bilateral-fund rules include contributions for supplied workers, alongside ordinary payroll obligations. A direct-employment estimate needs adjustment before it can represent an agency-based EOR quote.

Minimum Wage

Italy has no single nationwide statutory minimum-wage amount. Establish the applicable CCNL and employee level before making an offer. Pay must also meet the constitutional requirement of adequate, proportionate remuneration. The 2026 fair-pay framework ties the overall economic treatment to agreements signed by comparatively representative organizations. Checking base salary alone can miss contractual pay and benefits. See EURES Italy for employment context.

Payroll Cycle

Payroll is generally monthly. The CCNL determines additional salary instalments: a thirteenth is common, and some agreements provide a fourteenth. State annual gross remuneration and the instalment schedule together so the employee's offer and the employer's budget use the same basis. Variable compensation should have its own terms.

Individual Income Tax (IRPEF)

The national ordinary IRPEF bands for 2026 are:

The 2025 budget established the three-band structure; the 2026 budget reduced the middle rate to 33%. These are marginal rates on taxable income. Regional and municipal additions, personal deductions, credits and any qualifying special treatment affect net pay. The legal employer handles the payroll withholding and reconciliation.

Tax Residency Criteria

From 2024, physical presence in Italy for most of the tax year can establish individual tax residence, even without the other connecting factors. Civil-law residence and domicile remain alternative tests; domicile focuses on principal personal and family relationships. Population-register entry creates a rebuttable presumption. Treat residence and treaty questions separately from the choice to use an EOR, especially for a worker moving between countries. The Revenue Agency's Circular 20/E of November 4, 2024 explains the revised tests.

Employer Social Security Contributions

INPS costs depend on the employer and worker classifications. The ordinary employees' pension scheme has a total IVS pension contribution of 33%, split between employer and employee; that figure is neither a universal employer rate nor the whole employment burden. Other components may apply. The employer remits contributions and deducts the employee's share through payroll. Use the INPS framework to identify the relevant classification.

For 2026, the published daily contribution minimum is €58.13. It is a contribution-base reference. The €122,295 annual ceiling and extra 1% employee contribution above €56,224 require a worker-specific applicability check. They do not create a general salary cap. See the 2026 thresholds.

INAIL workplace-injury premiums vary with remuneration and insured risk. Obtain the relevant classification and premium basis rather than assuming a flat percentage. INAIL premiums explain the calculation approach.

Working Hours

Normal hours are 40 per week unless the CCNL sets a shorter schedule. Working time including overtime generally cannot exceed a 48-hour weekly average over the applicable reference period. Daily and weekly rest rules also matter; confirm the schedule before the offer and record actual time during employment. See working-time rules.

Overtime Pay

The applicable CCNL determines overtime premiums, authorization and treatment of night, weekend and holiday work. Give the EOR approved time records and agree how managers authorize extra work. There is no single overtime multiplier suitable for every Italian employee.

Employment Classifications

Open-ended employment is the ordinary form. A fixed-term hire needs written terms and an assessment of its duration, reasons, renewals and applicable exceptions. Direct fixed-term employment and agency assignments have different rule sets; have the legal employer document the rules it is applying rather than assuming one universal 24-month answer. Review the fixed-term framework and the relevant collective agreements. A part-time contract must identify the hours and their distribution.

Leave Policy

Annual Leave (Ferie)

The statutory minimum is four weeks of paid annual leave. Generally, two weeks are taken in the accrual year, consecutively on request, and the balance within the following 18 months, subject to applicable rules and the CCNL. Convert weeks into working days using the employee's actual workweek. During employment, statutory holiday entitlement generally cannot be exchanged for cash; settlement can occur on termination. See annual-leave rules.

Sick Leave (Malattia)

Set an absence-notification process and explain the medical-certificate requirements. For many covered private-sector employees, INPS sickness benefits are 50% of average daily remuneration for days 4–20 and 66.66% for days 21–180. Eligibility, waiting days and employer top-ups depend on category and agreement. The job-protected sickness period, or comporto, is a separate check; 180 benefit days do not establish universal job protection. Use the INPS sickness guide.

Maternity Leave (Congedo di Maternità)

Compulsory maternity leave generally covers five months. The usual split is two months before birth and three after; different timing requires the relevant conditions and medical certification. The statutory allowance is generally 80% of reference remuneration, with potential CCNL top-ups. The EOR should confirm the claim and payroll treatment from the worker's facts. See INPS maternity benefits.

Compulsory paternity leave generally provides ten working days, or twenty for a multiple birth, at 100% statutory pay. It can be used from two months before the expected birth until five months afterward. See INPS paternity leave.

Parental Leave (Congedo Parentale)

Employee parents can generally take parental leave within the child's first 14 years. The combined limit is ten months, extended to eleven where the father takes at least three months, with individual and single-parent limits. Nine months across the family are generally eligible for 30% pay; up to three qualifying months receive 80% under the enhanced-rate rules. Those months have specific age and cohort conditions. Confirm eligibility and prior leave dates before promising the rate. The current INPS parental guide sets out the conditions.

Other Statutory Leave

Covered bereavement or documented serious family illness gives three paid working days in total per year, subject to relationship and documentation requirements in the implementing decree. Marriage, study, caregiving and other leave need their own statutory or CCNL eligibility check.

Summary

Your managers coordinate absence and coverage; the legal employer checks entitlement, documentation, payroll and any benefit claim. Record the statutory entitlement, CCNL additions and employee balance together. An optional benefits package does not replace mandatory leave or contractual benefits.

Termination

Termination Types

Bring a proposed exit to the legal employer before telling the employee that employment will end. Just cause, a serious breach with notice, and objective organizational or economic grounds follow different legal tests and processes. A fixed-term contract's expiry is also different from ending it early. The cessation guide explains the principal routes.

Notice Period Requirements

Determine notice from the CCNL, level, tenure and exit reason. A generic range cannot settle an individual case. A dismissal requires written communication of the grounds, and a disciplinary dismissal needs the applicable challenge and response procedure. The employer should decide whether worked notice or payment in lieu is available. See dismissal rights.

Severance Pay (TFR — Trattamento di Fine Rapporto)

TFR is deferred remuneration accrued during employment. It generally remains payable when the employee resigns or is dismissed for just cause. The statutory annual calculation starts with eligible remuneration divided by 13.5; accumulated amounts are revalued using a fixed 1.5% plus 75% of the relevant ISTAT inflation increase. Payroll must apply the correct base, adjustments and destination. See INPS TFR guidance.

Reconcile final salary, payable unused leave, extra salary instalments, any notice allowance and TFR separately. The part already contributed to a supplementary pension fund follows that fund's rules. The CCNL and employment terms also affect settlement timing; do not assume a universal payment date.

Probationary Periods

Agree probation in writing and identify the duties. Check its permitted duration against the contract type and CCNL. Since January 2025, fixed-term probation has specific proportionality and duration rules; the Ministry circular explains them. A probationary exit still requires settlement of earned amounts and consideration of protected circumstances.

Legal Protections

Dismissal remedies depend on the defect, the employee's hiring date, the ground and, in some cases, employer size. Discrimination, protected periods and oral dismissal require particular care. See dismissal protections.

For an agency employee, ending your assignment and ending employment are separate decisions. An open-ended agency employee can have rights between assignments. Agree the employment outcome and resulting costs with the legal employer before cancelling the service.

Statutory Time Off

National Public Holidays

Saint Francis of Assisi was added as a national holiday by Law 151/2025, effective January 1, 2026. Confirm the employee's payroll calendar and CCNL treatment.

Regional and Local Variations

The local patron-saint holiday depends on the workplace and applicable rules. Rome's June 29 observance is one example, documented by Roma Capitale. Establish the remote worker's actual location before assigning a local calendar.

Holiday Pay Rules

A weekend holiday does not automatically move to Monday. A statutory holiday falling on Sunday can trigger additional pay under Law 90/1954. Saturday treatment and payment for holiday work need a work-pattern and CCNL check. Keep public holidays, annual leave and company closure days distinct.

Onboarding

Required Documentation

Collect identity and Italian tax-code details, address, bank information, right-to-work evidence and the worker's relevant qualifications. Your company should supply duties, location, reporting line, schedule, proposed pay and start date. The written terms must cover the employment parties and key conditions, including the role, duration, probation, remuneration, hours, leave, notice and collective agreement. The contract-information rules describe the required disclosures.

Work Authorization

EU, EEA and Swiss nationals generally have access to work in Italy without a work permit, with residence formalities where applicable. A non-EU worker's existing status or proposed immigration route needs an individual check. The ordinary entry route requires employer work authorization, a visa and a residence-permit application within eight days of arrival; quotas and exemptions can affect eligibility. See the EU immigration guide. An EOR contract does not itself confer work authorization. Confirm whether immigration assistance is included before setting a start date.

Legal Compliance

Use the reporting process for the actual employing route. Ordinary direct employment generally uses a pre-start UNILAV communication. Authorized agencies report supplied employment and assignments through UNISOMM under their specific rules. Do not apply the direct-employment deadline to every EOR hire. The legal employer should confirm the required filings, receipts and due dates, alongside INPS, INAIL, employment records and payroll setup. The Ministry's communications guidance distinguishes agency reporting.

Document workplace risks, necessary training, equipment and any health-surveillance requirements. Under agency employment, the client has prevention and protection duties toward the assigned worker; the commercial agreement must allocate the relevant information and training tasks. Review the safety obligations.

Data Protection

Use appropriate privacy notices, limited access and secure handling for identity, payroll, immigration and health information. The EOR and client should document their roles, lawful purposes, retention and any international transfers. Keep medical details restricted to the people who need them. The European Commission explains privacy obligations and international transfers.

Onboarding Sequence and Legal Deadlines

1. Resolve the route. Name the legal employer and any partner; confirm authorization, assignment conditions, location and role eligibility.
2. Set the employment terms. Identify the CCNL, code and level; settle pay, hours, duration, probation and work arrangements.
3. Check work authorization. Resolve the individual permission and any sponsorship requirements before employment starts.
4. Complete the agreements and employee file. Sign the required contracts and collect payroll, identity and workplace information.
5. Record the TFR choice. For affected private-sector employees hired from July 1, 2026, use the TFR3 process to establish previous employment and pension status. First-time hires generally have 60 days to choose; employees with an existing TFR-funded pension position have a different decision to communicate. Check the TFR FAQ and TFR3 announcement.
6. Complete operational checks. Confirm route-specific communications, insurance, payroll, safety and remote-work requirements, with owners and deadlines.
7. Agree the first payroll. Confirm the pay date, instalments, benefits, absence process and employee contact.

The sequence provides dependencies, rather than a guaranteed onboarding time. Immigration, incomplete records, collective-agreement analysis and route eligibility can change the start date.

Other

When the EOR Route Fits

An EOR arrangement can be useful when you want to employ a person in Italy while outsourcing legal-employer administration. It works only if the arrangement accommodates your worker, role, client organization and planned assignment.

Under ordinary agency rules, open-ended supply has a default 20% client-workforce limit; fixed-term employment and fixed-term supply share a default 30% limit, with collective-agreement variations and statutory exclusions. The 2025 circular explains expanded exclusions from the 30% limit and changes to assignment duration. Require the legal employer to explain the provision or exemption that fits your facts. This is particularly relevant to a foreign client planning its first Italian worker. Do not assume that a small team automatically satisfies a percentage test.

Restrictions also concern strike replacement, certain redundancies or working-time suspensions, and missing workplace-risk assessments. Regulated occupations need an additional eligibility check. If a proposal uses another arrangement, have its legal basis and the parties' responsibilities assessed on that basis.

Worker Classification

Look at how work is performed. Calling someone a contractor does not settle classification if your company organizes and directs an employment relationship. Assess scheduling, integration, autonomy and business risk before engagement. Italy's classification framework also addresses organized personal collaborations. Misclassification can bring pay, contribution and employment exposure.

Collective Bargaining (CCNLs)

Record the relevant agreement's title, signatories, CNEL code, current version and worker level. It shapes the offer and ongoing payroll: pay floors, hours, additional instalments, leave, overtime, probation, notice and welfare obligations. In agency employment, the agency's agreement and equal-treatment requirements at the user must be considered together. Ask how the proposed terms deliver the required overall treatment. Find agreement texts in the CNEL archive.

Client Responsibilities in an EOR Arrangement

The agency duties include client joint liability for wages and contributions and reserve disciplinary authority to the agency. Put decision rights and escalation steps in the commercial agreement. Corporate tax, permanent establishment, immigration and work in another country need separate assessment where relevant.

Remote Work Framework

For arrangements falling under lavoro agile, prepare the individual written agreement and mandatory communication. Cover workplace patterns, tools, working time, rest, disconnection, safety and privacy. The smart-working portal explains the framework. Clear any move to another country before it happens because immigration, payroll, tax and social-security treatment may change.

What Borderless AI Handles

Borderless AI's published EOR service includes contracts, onboarding, payroll, benefits administration and compliance support. For your Italy proposal, confirm the exact employing company and arrangement, authorization where required, CCNL and level, itemized employment costs, and the division of safety, immigration and exit work. The signed local scope determines what is included.

Bring the job description, work location, nationality or existing permission, annual gross pay, intended duration and proposed start date to the discussion. Book a demo to assess those inputs with Borderless AI. If you are choosing among providers, use the separate Italy EOR comparison.