As of March 2024, the estimated population of Italy is 58.8 million.
The currency in Italy is the Euro (EUR). The currency symbol is €.
Employment contracts for an indefinite period are the most common type of employment relationship allowed by the labor legislation of Italy. Unless explicitly stated otherwise, labor agreements are considered to be for an indefinite period. Such contracts continue until either the employer or the employee lawfully terminates them. Such contracts are protected against unfair dismissals.
The labor law of Italy stipulates that permanent employment contracts may be drawn in writing, but it is not mandatory. Permanent contracts are the default form of employment relationships. There is, however, certain information (specified by statute) regarding the employment relationship that the employer must provide to the employee in writing within 7 days of the beginning of the employment relationship. Employers may fulfill the written information requirement by providing the prospective or onboarding employee with the applicable regulatory references, collective bargaining agreement, or corporate agreement. Fixed-term and part-time employment contracts must be concluded in writing. Employers can include a non-compete clause in employment contracts to prevent former employees from disclosing information acquired during their tenure or engaging in competitive activities after the employment relationship has concluded. This must be in writing, and must be limited to specific purposes, time, and location. The duration of this restriction must not exceed 5 years in case of managers, and 3 years in case of other employees. Employers must pay compensation to employees for the duration.
Italian labor law permits employers to hire temporary workers through registered employment agencies under a temporary work supply contract. These contracts are allowed when permitted by the applicable national collective agreement, for temporary roles outside the company’s usual activities, or to replace absent employees. However, hiring temporary workers is prohibited to replace striking employees, during suspensions or reduced hours of permanent staff, or for roles requiring special medical supervision or involving particularly hazardous work. The user company is jointly and severally liable for the obligation to provide remuneration and the corresponding contribution obligations not fulfilled by the supplier company The temporary work supply agency hires its workers under an employment contract for temporary work, either for a fixed-term or indefinitely. The temporary work contract is stipulated in writing, and a copy is provided to the worker within 5 days of starting work at the user company, with the following information: Reasons for using the provision of temporary work services Name of the employer Duties to which the worker will be assigned and the relative classification Probationary period and its duration Place, time, and economic and regulatory treatment due Start date and the end of the work activity Any security measures necessary in relation to the type of activity Temporary workers are paid a salary no less than that to which employees of the same level of the user company are entitled.
Employment relationships in Italy may begin with a probationary period. Per the Italian Civil Code, any probationary period must be stipulated in the written contract or letter of employment. Once the probationary period has been completed, the contract is considered to be for an indefinite period, and the probationary period counts toward the employee's seniority. The probationary period can last for a maximum of 6 months for managerial employees and 3 months for all other employees. Maximum probationary period lengths may differ depending on the industry or the applicable collective bargaining agreement. Effective January 2025, new rules apply for probation in fixed-term contracts where the duration of probationary period is set to 1 day of probation for performance of 15 days of work. In any case, the duration of the probationary period cannot be less than 2 days nor more than 15 days for employment relationships lasting no more than 6 months, and 30 days for those lasting more than 6 months and less than 12 months. During the probationary period, either of the parties may end the employment relationship without notice or severance.
Working time is defined by the labor law of Italy as "any period during which the worker is at work, available to the employer, and in the exercise of their activity or duties." The law sets a standard workday at 8 hours, and, based on a 5-day work week, a full work week is 40 hours. Collective agreements can set shorter duration. Any hours over 40 per week are considered to be overtime. Employees have the right to a rest period of at least 24 consecutive hours every 7 days, usually coinciding with Sunday, but numerous exceptions apply, for example, with regard to seasonal activities, manufacturing operations with continuous cycles, and hospitals. Most collective agreements provide for a premium rate of pay for employees who work on Sunday, as well as a day off in lieu during the week.
2026
2027
Under the Constitution, employees in Italy are entitled to paid annual leave from the first day of their job, and this entitlement cannot be waived. The labor law stipulates that employees are entitled to at least 4 weeks of paid annual leave. At least 2 weeks must be taken in the year the leave was accumulated, and the other 2 weeks can be accumulated and used in the next 18 months after the year of accumulation ends.
In Italy, during an absence from work resulting from illness or accident, employees are generally entitled to 3 days of paid sick leave. Employers pay for the first 3 days of leave. From day 4 of sick leave, employees are eligible to a statutory sick benefit amounting to 50% of regular net pay for the first 20 days and 66.66% from the 21st to the 180th day, up to a maximum continuous absence of 180 days in a calendar year. There are different conditions for different categories of employees. For example, employees of public establishments and pastry shops are entitled to 80% of their remuneration for the entire duration of sickness. Employers pay a statutory sick benefit to their employees and are reimbursed by the National Institute for Social Security (INPS). Effective March 2026, private sector employers are required to report illness start dates, absences, benefits, and related events via Uniemens system to the INPS. Any changes in sickness benefit amounts or duration must be reported. Effective August 9, 2025, employees with oncological diseases, or disabling or chronic diseases, including rare ones, resulting in a degree of disability equal to or greater than 74%, have the right to request unpaid leave for 24 months. This leave can be taken continuously or in installments. Employees must provide a medical certificate issued by a general practitioner or specialist doctor working in an accredited public or private healthcare facility who is treating them.
Female employees in Italy are entitled to at least 20 weeks of compulsory maternity leave. Typically, it is split into 8 weeks before birth and 12 weeks after. In addition to paid leave, a mother can choose to take up to 6 months of unpaid leave. Single mothers are eligible for up to 10 months of unpaid maternity leave following the 20 weeks of paid leave. If an employee decides to forgo maternity leave, her working hours may be reduced to 6 hours per day. Maternity leave is paid at a rate of 80% of their average monthly wage established annually by law for the type of activity carried out and is supported by the National Institute of Social Security (INPS). Employers pay the allowance to employees and then get refunded from the INPS. In the event of termination of pregnancy beyond the third month, an allowance is paid for a period of 30 days.
Compulsory paid leave for fathers and intentional mothers is 10 days. Paternity leave must be used within 5 months of the child's delivery date. Compulsory leaves are paid at a rate of 100% of the worker's remuneration for that time. A daily allowance is paid by the Italian National Institute of Social Security (INPS). Adoptive or custodial fathers and intentional mothers are also entitled to paternity leave benefits. Both the compulsory paid leave and the optional leave can now be used in the case of perinatal death of the child. The labor law of Italy allows fathers or intentional mothers to be absent from work for the entire maternity leave period (3 months after the birth or for the amount of unused maternity leave remaining) in the following circumstances: Cases of serious illness or death of the mother Abandonment of the child by the mother When the male worker has exclusive custody In these cases, a father or intentional mother will be granted the same benefits as a mother on maternity leave.
In Italy, upon the termination of an open-ended employment contract, both the employer and the employee are entitled to a notice period unless the agreement is terminated for just cause (a reason that does not allow the continuation of the employment relationship). The duration of the notice period typically varies according to the employee’s length of service and professional level and is established in the applicable collective bargaining agreement. If the decision to terminate a labor agreement comes from employers, they can exempt employees from working during the notice period by providing a corresponding payment in lieu of notice.
When an employment contract is terminated, even for just cause, the employer must pay the following: TFR calculated as the employee's annual salary divided by 13.5 to determine the annual accrual, then the accumulated balance is revalued each year by 1.5% plus 75% of the ISTAT cost-of-living index increase. The TFR must be transferred to the supplementary pension fund chosen by the employee. If the employee has not indicated a supplementary pension fund, the TFR must be transferred to the INPS Treasury Fund. For the years 2026-27, the obligation to transfer the TFR to the INPS Treasury fund applies to employers with 60 or more employees, reducing to 50 or more in the years 2028 to 2031, and to 40 or more starting in 2032 Pro-rata supplementary monthly payments if the employer made such payments during the employment relationship Payment in lieu of unused holidays
To be eligible for an old-age or retirement pension in Italy, a worker must have paid insurance contributions to the National Social Security Institute (INPS) for at least 20 years. The retirement age is currently set at 67 years. Effective January 1, 2027, the retirement age will increase by 1 month, reaching 67 years 1 month. It will further increase to 67 years and 3 months from January 1, 2028. For individuals whose first contribution credits begin on or after January 1, 1996, the age of retirement is 71 years for both men and women. Effective January 1, 2027, it will be increased to 71 years and 1 month, and further to 71 years and 3 months from January 1, 2028. The amount of pension depends on the system that applies to the employee at the time of retirement: Retributive System – For employees with more than 18 years of contributions by December 31, 1995. Applies to contributions accrued up to December 31, 2011. Pension is based on the average income of the last years, contributory seniority, and accrual rate. Contributory System – For employees with no seniority by January 1, 1996, or less than 18 years by December 31, 1995. Since January 1, 2012, it applies to all contributions. Pension depends on the amount and duration of contributions, not final salary. Mixed System – Applies to employees with both retributive and contributory periods. The early-retirement pension may be granted to persons who have contributed to the fund for 42 years and 10 months (men) and 41 years and 10 months (women). Starting from July 1, 2026, newly hired private sector employees will automatically be enrolled in the pension fund provided for by their National Collective Bargaining Agreement. They will have 60 days to opt out. Supplementary pension provision is based on a system of pension funds responsible for collecting pension savings through which they can benefit from a supplementary pension at the time of retirement.
Survivors are eligible for a pension if the deceased employee has paid at least 780 weekly contributions or a minimum of 260 weekly contributions, of which at least 156 were made in the 5-year period preceding the date of death. The survivors benefit is calculated based on the deceased employee's pension or the pension they would have been eligible for: 60% of the deceased person's pension is granted to the spouse if there are no other eligible dependents 70% to the child, if there is an only child and there are no other eligible dependents 80% to a spouse and a child or 2 children without a spouse 100% to a spouse and 2 children or more, or 3 or more children without a spouse 15% to any other family members that may be entitled, other than spouse, children, or grandchildren If the deceased employee was not eligible for a pension, the survivors are entitled to an allowance if contributions were paid for at least 1 year in the 5 years preceding the employee's death. The amount is equal to the monthly social allowance, multiplied by the number of annual contributions made by the deceased member. Survivors of workers who died following an accident or an occupational disease are also eligible for pension from the National Institute for Insurance Against Accidents at Work (INAIL) based on the maximum conventional salary of the industry sector.
Invalidity pension is paid to insured employees who suffer from the absolute and permanent inability to perform any work and have paid at least 5 years of contributions, out of which 3 years were in the 5-year period preceding the application. The pension is based on contributions made, adjusted annually according to the average rate of increase in gross domestic product during the last five years, and a coefficient that varies according to the insured's age. In the case of partial invalidity, the benefit is paid for three years and can be renewed. After the second renewal, it becomes definitive. Once the disabled person reaches retirement age, the disability pension is substituted by the old-age pension. Disabled residents aged between 18 and 67 who require economic support are entitled to a disability allowance if they suffer a partial reduction in working capacity (from 74% to 99%) and have an income below the annual thresholds. For 2026, the monthly disability allowance is set at EUR 340 (euros), paid for 13 months, and the annual personal income limit is EUR 5,852.21. Upon reaching the registration age for the right to social allowance, the monthly assistance allowance is transformed into a replacement social allowance. In the case of total disability, in 2026, the pension is EUR 340.71, paid for 13 months, and the annual income limit is EUR 20,029.55. In the case of work-related injuries, employees can receive paid leave and may even be eligible for extra compensation. If a workplace injury occurs, they must report the incident, get a medical check-up, and obtain a medical certificate. Employees must then submit the document and an application to the National Institute for Insurance Against Accidents at Work to avail themselves of work-related injury leave.
Income tax applies to the total income of residents from sources within and outside Italy, while non-residents are taxed on their income from sources in the country. The fiscal year runs from January 1 through December 31. The national income tax is calculated at a progressive rate between 23% and 43%, depending on the taxable income of the employee. Employees may also be subject to regional and municipal taxes on their income, in addition to national taxes. A substitute tax (replacing IRPEF and municipal rates) of 5% applies to salary increases resulting from renewals of national collective labor agreements (CCNL) signed between Jan 1, 2024, and Dec 31, 2026. Any shift premiums and holiday payments are taxed at 15% as substitute tax. For productivity bonus paid to private sector employees with less than EUR 80,000 income, a substitute tax rate of 1% is applied to the benefit up to EUR 5,000 gross per year. Any excess is considered ordinary income and is taxed at standard IRPEF rates. Employees can opt out of this system. Italy offers a substitute lump-sum tax regime for foreign nationals who shift their tax residence to Italy. They can choose to pay a fixed annual substitute tax instead of the progressive tax regime on their income from foreign sources. This tax regime is available to newly resident individuals in Italy who have been non-tax resident in Italy for at least 9 of the 10 years preceding their transfer to Italy. For those opting for the substitute regime in the year 2026, the tax is EUR 300,000 per year. This benefit is available for up to 15 years. They can also include their family members in the same regime by paying an additional EUR 50,000 per year per family member. The repatriated workers regime is a tax incentive in Italy designed to attract skilled professionals and entrepreneurs to live and work in the country. Under this regime, eligible taxpayers pay tax on only 50% of their employment or self-employment income earned in Italy. The regime is applicable when the following conditions apply: Taxpayers undertake to reside in Italy for tax purposes for at least 4 years They have not been tax resident in Italy in the 3 tax periods preceding their transfer The activity is carried out for the majority of the tax period in the territory of Italy The workers possess the highly qualified or specialized requirements indicated by Legislative Decrees no. 108/2012 and no. 206/2007.
Italy is a party to the Schengen Agreement. The following types of visas are granted by the Italian Ministry of Foreign Affairs and International Cooperation:
Digital Nomad and Remote Worker Visa allows non-EU citizens to legally live and work remotely in Italy for up to 1 year. A " digital nomad " is a foreign national who will engage in self-employment through the use of technological tools that allow them to work remotely. A " remote worker " is a foreign national who, through the use of technological tools that allow remote working, will carry out subordinate work or collaboration activities. They must prove that they are highly qualified workers, have a minimum annual income of no less than 3 times the minimum level, have health insurance for medical care and hospitalization valid for the period of stay, have suitable accommodation for the period of stay, have at least 6 months of previous experience working as a digital nomad or remote worker. The visa holder must also apply for a valid residence permit at the Police Headquarters of the province in which they are located within 8 working days of entering Italy.
In Italy, immigration rules vary based on the employee's nationality. European Union (EU) and European Economic Area (EEA) nationals can work in Italy without a work permit. However, foreign nationals from non-EU/EEA countries generally need a valid work permit issued by their Italian employer and must obtain a work visa from the Italian consulate in their country of residence before entering Italy. The hiring of non-EU/EEA nationals is subject to a yearly quota system, with exemptions for highly skilled professionals (although they must still complete the required application process for a work permit and visa). Employers can only submit a work permit application after the annual flow planning decree is published in the Official Gazette of the Italian Republic, which establishes the number of work permits that can be issued. Additionally, employers must obtain an entry clearance document (Nulla Osta) from the Italian Ministry of Labor, confirming a shortage of Italian workers for the position. The applicant must present this document during their visa interview. Highly qualified foreign nationals can work in Italy with an EU Blue Card. It is a specific type of residence permit issued by the Police Chief to highly-qualified foreigners who have been issued entry authorization by the One-Stop Shop for Immigration, following the signing of a work-related residence contract and the relevant notification to the Police Headquarters. The Blue Card is valid for 2 years if the employment contract is permanent. If the contract is fixed-term, the residence permit is valid for 3 months longer than the expiration date of the employment contract. Italy has introduced enhanced checks on employer declarations for all employees (including volunteers and research workers) to reduce fraud and false declarations. The maximum number of permit applications has been limited to 3 per private user employer, also applicable for seasonal workers. Applications may be rejected where the employer is unable to demonstrate the capacity to employ the foreign worker under the declared employment conditions. Entry clearance may also be refused where the employer has been convicted within the previous three years of offenses relating to illegal immigration, labor exploitation, human trafficking, or the illegal employment of foreign nationals. Foreign nationals can legally reside and work while waiting for the conversion of their residence permit. For victims of labor exploitation, domestic violence, and those under social protection, the residence permit duration is increased to 12 months, from 6 months earlier. Employees employed in family care or social-health care for elderly or disabled persons are permanently excluded from the quota system. For the first 12 months of legal employment, they may only perform the authorized activity, and can change employers only with authorization from the local labor inspectorate.
