Employer of Record Guide in San Marino
Navigating the hiring landscape in San Marino can be complex, but with the right insights, you can streamline your process. Discover how to compliantly hire top talent in this unique microstate and manage your workforce effectively while tapping into Europe's emerging tech hub.
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San Marino's strategic location and competitive tax environment make it an attractive destination for tech talent, with growing demand for AI engineers and cybersecurity specialists. Understanding the local market dynamics and regulatory framework is essential for successful expansion into this distinctive European jurisdiction.
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Your EOR guide in San Marino
From payroll cycles to employment contracts, San Marino follows many Italian labor practices while maintaining its own unique requirements. This comprehensive guide covers everything you need to know about compensation, benefits, and compliance to hire confidently in San Marino.
Minimum Wage
Writer's Note: Please double-check minimum wage rates for San Marino as the research indicated a discrepancy between requested country (Albania) and provided data (San Marino).
San Marino follows Italian labour standards in many areas. The minimum wage varies by sector and is typically established through collective bargaining agreements rather than a single national rate.
| Sector | Approximate Minimum (EUR/month) | Notes |
|---|---|---|
| General Employment | €1,200 - €1,400 | Varies by collective agreement |
| Hospitality | €1,100 - €1,300 | Seasonal variations apply |
| Retail | €1,150 - €1,350 | Based on hours and experience |
Note: San Marino uses the Euro (EUR) as its official currency and follows many Italian employment practices.
Payroll Cycle
- Monthly: Most common payment frequency
- Bi-weekly: Allowed but less common
- 13th Month: Traditional bonus payment in December (similar to Italian practice)
Individual Income Tax
San Marino operates a progressive tax system with rates that are generally competitive compared to neighbouring countries.
| Income Bracket (EUR) | Tax Rate |
|---|---|
| Up to €10,000 | 9% |
| €10,001 to €20,000 | 14% |
| €20,001 to €30,000 | 20% |
| €30,001 to €50,000 | 25% |
| Over €50,000 | 35% |
Writer's Note: Please verify current San Marino tax brackets as research source indicated potential data discrepancies.
Tax Residency Criteria
Individuals are considered San Marino tax residents if they:
- Maintain their primary residence in San Marino for more than 183 days per year
- Have their centre of vital interests in San Marino
- Are registered in San Marino's population registry
Employer Payroll Contributions
Employers in San Marino must contribute to social security and other mandatory programmes:
| Contribution Type | Employer Rate | Employee Rate |
|---|---|---|
| Social Security | ~23% | ~9% |
| Health Insurance | Included in social security | Included in social security |
| Unemployment Insurance | ~1.5% | ~0.5% |
| Total Employer Cost | ~25% | ~10% |
Note: Rates are approximate and may vary based on employment type and sector.
Working Hours
The standard working week in San Marino is:
- 40 hours per week
- 8 hours per day
- Monday to Friday (typical schedule)
Certain professional categories may have different arrangements based on collective agreements or contract terms.
Overtime Pay
- Overtime is paid at 125% of regular rate for the first 2 hours per day
- 150% of regular rate for additional hours beyond 2 hours overtime per day
- Weekly limit: Generally 8 hours of overtime per week
- Annual limit: Maximum 250 hours of overtime per year
Bonus Payments
- 13th Month: Traditional year-end bonus equivalent to one month's salary
- 14th Month: Some sectors provide an additional summer bonus
- Performance bonuses: Not mandatory but commonly included in contracts
Full-Time vs. Part-Time
- Full-time: 40 hours per week
- Part-time: Less than 40 hours per week with proportional benefits
- Temporary contracts: Limited duration with specific renewal rules
Vacation Leave
- Minimum entitlement: 4 weeks (20 working days) per year
- Accrual: Typically earned monthly (1.67 days per month)
- Carryover: Limited carryover to following year (usually max 1 week)
- Payout: Must be paid out upon termination
Sick Leave
- Duration: Up to 180 days per year with medical certification
- Payment:
- First 3 days: Unpaid (employer may provide)
- Days 4-20: 50% of salary (social security)
- Days 21+: 66.7% of salary (social security)
- Medical certification: Required from day 1
Maternity Leave
- Duration: 5 months total (2 months before birth, 3 months after)
- Payment: 80% of salary paid by social security
- Job protection: Position guaranteed upon return
- Flexibility: Some arrangements for splitting leave periods
Parental Leave
- Paternity leave: 10 days paid leave for fathers
- Extended parental leave: Additional unpaid leave available
- Adoption leave: Similar provisions for adoptive parents
Bereavement Leave
- Duration: 3-5 days depending on relationship to deceased
- Payment: Typically paid by employer
- Documentation: Death certificate required
Personal & Family Leave
- Family emergencies: Short-term unpaid leave available
- Study leave: May be available for professional development
- Civic duties: Time off for jury duty, voting, etc.
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Vacation | 4 weeks/year | Yes | Employer |
| Sick Leave | Up to 180 days | Partially | Social Security |
| Maternity | 5 months | 80% salary | Social Security |
| Paternity | 10 days | Yes | Social Security |
| Bereavement | 3-5 days | Yes | Employer |
Termination Types
Termination With Cause:
- Serious misconduct, theft, or breach of contract
- No notice period required
- No severance payment due
Termination Without Cause:
- Economic reasons or restructuring
- Requires proper notice and potential severance
- Must follow procedural requirements
Notice Period Requirements
Notice periods vary based on length of service and employment level:
| Length of Employment | Notice Period |
|---|---|
| Up to 6 months | 15 days |
| 6 months to 2 years | 1 month |
| 2 to 5 years | 2 months |
| 5 to 10 years | 3 months |
| Over 10 years | 4 months |
Severance Pay
- Calculation: Based on length of service and final salary
- Minimum: One month's salary per year of service (approximate)
- Maximum: Varies by collective agreement and contract terms
Probationary Periods
- Standard duration: 3-6 months
- Notice during probation: Reduced notice requirements
- Extension: May be extended in certain circumstances
Final Pay Requirements
- Timeline: Final payment due within 30 days of termination
- Components: Salary, accrued vacation, severance (if applicable)
- Documentation: Detailed breakdown required
Anti-Discrimination & Retaliation Laws
San Marino prohibits termination based on:
- Gender, age, nationality, religion
- Pregnancy or family status
- Union membership or activities
- Filing complaints or exercising legal rights
National Holidays
Writer's Note: Please verify San Marino's specific public holidays as research indicated potential data source issues.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Epiphany | January 6 |
| Liberation Day | February 5 |
| Easter Monday | Varies |
| Labour Day | May 1 |
| Corpus Domini | Varies |
| Liberation from Fascism | July 28 |
| Assumption | August 15 |
| Republic Day | September 3 |
| All Saints' Day | November 1 |
| Commemoration of the Dead | November 2 |
| Immaculate Conception | December 8 |
| Christmas Day | December 25 |
| St. Stephen's Day | December 26 |
Holiday Pay Rules
- Eligibility: All employees entitled to holiday pay
- Rate: Normal daily wage
- Working on holidays: Double pay plus substitute day off
Required Documents for Employment
- Employment contract: Must be in Italian (official language)
- Work permit: Required for non-EU citizens
- Tax registration: Social security number and tax code
- Health certificate: May be required for certain positions
- Residence permit: For non-EU employees
Language Requirements
- Official language: Italian
- Contract language: Employment contracts must be available in Italian
- Workplace communication: Italian proficiency generally required
Background Checks & References
- Criminal background: May be required for sensitive positions
- Employment verification: Standard practice
- Educational credentials: Verification required for professional roles
- Privacy compliance: Must follow EU data protection standards
Data Protection & Privacy
- GDPR compliance: San Marino follows EU data protection standards
- Employee consent: Required for data collection and processing
- Data retention: Specific limits on how long employee data can be stored
IP Assignment & Confidentiality
- Work-for-hire: Employer owns work created during employment
- Confidentiality clauses: Standard in most contracts
- Non-compete: Limited enforceability, must be reasonable in scope
Probation Period Setup
- Duration: Typically 3-6 months
- Performance evaluation: Regular check-ins recommended
- Documentation: Clear performance standards required
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Work permit application (if needed) | Day 1-30 |
| Employment contract signed | Day 30-35 |
| Tax and social security registration | Day 35-40 |
| First day of work | Day 40-45 |
Worker Classification: Employee vs. Contractor
Employee characteristics:
- Regular work schedule and location
- Employer provides tools and equipment
- Integrated into company operations
- Subject to employer direction and control
Contractor characteristics:
- Independent operation
- Own tools and equipment
- Project-based work
- Invoices for services
Writer's Note: Please verify San Marino's specific worker classification criteria as research source indicated potential discrepancies.
Unionisation & Collective Agreements
- Union presence: Active labour unions in various sectors
- Collective bargaining: Common in larger industries
- Sector agreements: May override individual contract terms
- Strike rights: Protected under labour law
Cultural Norms & DEI Expectations
- Work-life balance: Highly valued, long lunch breaks common
- Hierarchy: Respectful but less formal than larger European countries
- Communication style: Direct but polite
- Diversity: Growing focus on inclusion and equal opportunity
Remote Work Considerations
- Legal framework: Emerging regulations for remote work
- Equipment provision: Employer typically responsible
- Health and safety: Employer obligations extend to home office
- Cross-border: Complex for employees working from other countries
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