Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Euro (€, EUR)

Payroll Frequency


Public Holidays

12 days

Employer Taxes

27% to 28%

Cost of Living Index


Statutory Leave

4 weeks

Sick Leave

Up to 180 days

Maternity Leave

5 months

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

There is no statutory minimum wage in Italy, but national collective bargaining agreements set minimum wages on a sector-by-sector basis.

Overtime Pay

Working hours are typically 8 hours per day, 40 hours per week. Monday through Friday is the standard workweek.

Overtime pay is required. Overtime is defined as hours worked outside of normal working hours. Overtime is limited to 250 hours per year for employees. Employees are compensated for extra hours worked as follows:

  • The first eight hours are worth 150% of the hourly rate.
  • The following hours, pay 200% of the hourly rate.
  • Overtime night work at 150% of the hourly rate, excluding regular duty shifts (from 10 pm to 6 am)
  • On holidays and Sundays, pay 130% of the hourly rate.

Overtime pay is not available to managerial employees.

Additional Pay

It should be noted that in Italy, collective agreements usually determine whether these additional salary payments are required. Many collective bargaining agreements require one or both of the 13th and 14th month wages.

The 13th month's salary is paid around the middle of December, and the 14th month's salary is paid around the middle of June.

Payroll Cycle

For all Borderless customers, salaries are monthly based, for work between the first and last day of the month, as well as an additional 13th and 14th month payment.

Employer Costs & Taxes

  • 32%: Social Security
  • 4%: IRAP Regional Tax and Bank Holidays
  • 1.5%: INAIL (Injuries Insurance)
  • 7.407%: TRF (Severance)

Employee Costs & Taxes

  • 9.19% - 10.48%: Social Security
  • 23%: Up to 15,000
  • 25%: 15,000 - 28,000
  • 35%: 28,000 - 50,000
  • 43%: Above 50,000

Employment Information

Termination Process

Employers in Italy can generally terminate an employment contract in the following ways:

  • Urgent dismissal of an employee without notice for just cause, such as theft or other serious misconduct;
  • Ordinary dismissal with notice for a subjective reason, involving breaches of the employee's legal and contractual duties;
  • Ordinary dismissal with notice for an objective reason, involving economic factors related to production, work organization, proper business operation, and redundancy.

Notice period

Notice periods are decided on and governed by collective bargaining agreement.

Probation Period

In Italy, the mandatory probationary period is 45-60 days for employees who are not assigned to management functions and six months for all other employees. The applicable probation period is usually specified in the employer's national collective bargaining agreement.

Severance Details

In Italy, there is no such thing as severance pay or redundancy pay. However, if the employment relationship is terminated, the employee receives the so-called TFR (Trattamento di Fine Rapporto), which is a portion of workers' wages that is deferred upon termination of the employment relationship.

As a result, it cannot be considered proper severance pay because it is made up of a set amount of salary set aside each month.

The TFR is calculated by dividing a year's total salary by 13.5, plus 1.5% for each year of service, plus inflation compensation.

The TFR must be paid to the employee in the event that the employment relationship is terminated.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo