Introducing Mauve in Italy

Expand into Italy with Employer of Record, Salary Benchmarking, Payroll, and HR solutions

Located in Southern Europe, Italy offers access to one of the EU’s largest economies, with a diverse talent pool, established infrastructure, and strong sectors spanning manufacturing, technology, financial services, and professional services.

Planning expansion into Italy? Simplify hiring and workforce management with Mauve’s Employer of Record (EOR), Global Payroll, HR Consultancy, and Salary Benchmarking solutions.

With an established local office since 2001 and deep in-country expertise, we help you navigate Italian employment requirements, minimise compliance risks, and hire, pay, and manage your workforce with confidence.

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Green, white, and red tricolour flag waving on a tall pole against a clear blue sky with scattered clouds.

Sunny narrow italian street with colourful buildings and a moped parked outside.

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Colosseum in Rome at dusk, illuminated with warm lights, viewed from a stone walkway under a deep blue evening sky with scattered clouds.

Solutions spotlight

How our services work in Italy

Whether you're a start-up entering the Italian market, a growing business expanding your European footprint, or an international enterprise establishing operations in Italy, Mauve helps simplify hiring and workforce management.

Explore some of our global employment solutions.

Employer of Record (EOR)

With Mauve as your Employer of Record (EOR) partner in Italy, you can hire and manage employees quickly and compliantly without the need to establish a legal entity.

Our EOR solution provides a streamlined route into the Italian market, helping you expand your workforce compliantly.

Our specialists manage local employment contracts, benefits, taxes, payroll, and compliance requirements – providing the in-country expertise and support you need to confidently build and manage your workforce in Italy.

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Global Payroll

Payroll in Italy goes beyond processing salaries. Keeping up with IRPEF income tax withholding, INPS social security contributions, payroll calculations, and local reporting requirements can be time-consuming, while errors can create unnecessary compliance risks.

From accurate and timely monthly payroll processing and INPS contributions to reporting requirements such as UNIEMENS and Certificazione Unica (CU), our local specialists manage your Global Payroll – providing the support you need to manage your Italian payroll with confidence.

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Global HR Consultancy

Turn to Mauve’s HR Consultancy Services for expert support throughout the employee lifecycle.

Our HR specialists work closely with your team to develop comprehensive HR handbooks, policies, and processes aligned with Italian employment legislation and best practice.

Whether you’re navigating National Collective Labour Agreements (CCNL), statutory leave and holiday entitlements, working time requirements, or sector-specific employment rules, we provide proactive HR guidance to help you stay compliant and manage your workforce with confidence.

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Salary Benchmarking

Leverage data from Mauve's Salary Benchmarking services to understand compensation expectations in Italy and develop competitive pay packages that attract and retain top talent.

Consult our specialists for insights into local market salaries, bonuses, benefits, statutory contributions, and other employment costs, helping you make informed hiring decisions.

From agriculture, manufacturing, and life sciences to fashion, technology, and real estate, we help global businesses benchmark roles and develop salary strategies that support successful expansion into Italy.

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Salary & compensation

Working Hours

Standard working hours are eight hours a day, 40 hours a week with a maximum of 48 hours over seven days.

Minimum Wage

There is no statutory minimum wage in Italy. Wages are often negotiated in collective bargaining agreements.

Employee Tax

Annual income	Tax rate
Up to EUR 15,000	23%
EUR 15,001 - 28,000	25%
EUR 28,001 - 50,000	35%
More than EUR 50,000	43%
Social security contribution	10%

Bonuses

All employees are entitled to a 13th-month salary (also known as tredicesima mensilità), which is paid in December.

Contracts

Each category of work in Italy has a National Collective Contract, which has been agreed by the trade union relevant to the particular industry. This is not usually issued to employees. Instead, the employer will issue an employment letter which refers to the applicable National Collective Contract.

Casual, permanent, and fixed-term contracts are permissible in Italy.

Types of annual leave

Annual Leave

Employees are entitled to a minimum of four weeks (20 working days) of paid annual leave per year.

Sick Leave

The amount of sick leave and rate of pay depends on how many instances of sickness absence the employee has per year.

For the first two absences of up to three days each, they will receive 100% of their salary. This is reduced to 66% for the third absence and 50% for the fourth. No payments are made for further sickness absences.

After four days, the employee received 75% of their salary. From day 20 to 180, the employee will receive 100% of their salary.

Parental Leave

Maternity leave: at least five months' leave, paid by the INPS at a rate of 80% of the salary while the employer pays the difference.
Paternity leave: ten (10) days fully paid.
Parental leave: parents are entitled to a total of up to ten months of parental leave (or 11 months if the father takes at least three months). The first three months are paid at 80% of salary, while subsequent months are paid at 30%. The leave may be taken simultaneously or consecutively by both parents.

Termination

Termination Process

Indefinite contracts can usually only be terminated by the employer, if they have just cause or justified grounds. These usually amount to a breach of contract or serious misconduct.

Fixed-term contracts can only be terminated by mutual agreement or for just cause.

Employees can also terminate the contract by giving notice in line with legal requirements.

Severance Pay

There are four mandatory payments that must be made at the end of a contract, irrespective of the reason for dismissal:

Severance pay (also known as Trattamento di Fine Rapporto, or TFR)
Unused annual leave
Accrued 13th and 14th salary
Notice pay (by mutual agreement).

Insurance

Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that connects all Mauve entities with two trusted providers. As part of our comprehensive global Employer of Record services, this insurance offering supports companies employing staff overseas by ensuring full compliance with local legal requirements while safeguarding their workforce.

The programme provides international insurance coverage through a combination of the master policy and jurisdiction-specific local policies, where required by law. This structure ensures seamless alignment with local employment laws—an essential element of maintaining global regulatory compliance within any international EOR payroll arrangement.

Coverage includes:

Employer’s Liability and Public Liability – £10,000,000 combined limit.
Professional Indemnity – £5,000,000 limit.
Worker’s Compensation – Limit varies based on the employee’s country of work.

This solution is ideal for organisations seeking to streamline global employee management while ensuring every EOR employee is protected and fully compliant in their respective jurisdictions.

For tailored advice on EOR insurance coverage, payroll compliance, or global compliance services in your target country, get in touch with Mauve’s expert international HR consultancy team.

Ready to expand into Italy?

Hire locally. Stay compliant. Scale confidently. Our experts in Italy can help you get started.

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Benefits of global expansion into Italy with Mauve Group's Employer of Record, Salary Benchmarking, Payroll, and HR solutions

Successful expansion into Italy requires businesses to understand the local employment landscape and establish the right foundations for global growth. That's where Mauve Group comes in.

We combine global employment expertise with in-country knowledge to help you navigate the complexities of hiring, payroll, HR administration, employee management, and workforce compliance. Explore the key advantages of working with Mauve as your local employment partner.

Local expertise in Italy

Understand the Italian employment market with support from specialists familiar with local workplace practices, workforce expectations, and employer requirements.

Our knowledge of the Italian market helps you navigate local employment norms and cultural expectations, while shaping practical approaches to hiring, workforce planning, and employee management.

Employment law in Italy

Employers in Italy must comply with a range of employment requirements covering areas such as employment contracts, working hours, statutory leave, minimum wage provisions, collective labour agreements, and employee termination.

Mauve provides practical guidance on navigating Italian employment law, helping you apply local requirements correctly and minimise the risk of costly compliance oversights as your workforce grows.

Fast, compliant market entry

Enter the Italian market without the delays and administrative burden of establishing a local entity.

Mauve’s Employer of Record (EOR) solution allows you to hire local talent from the outset, while our wider employment services can support salary benchmarking, HR requirements, payroll, and immigration as your Italian presence develops.

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Need support with expansion into Italy?

Talk to us about cross-border expansion into Italy

Share how you’re planning to expand into Italy – who you’re employing and what you’re looking to navigate locally.

We’ll walk you through employee types, compliance requirements, local payroll delivery, and how Mauve’s global employment solutions can support you to hire in-country as your team scales.

Contact our team

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Mauve Group – trusted partners in EOR and global expansion solutions

Client recommendations

Lisa Oldfield

People & Development Manager,
OE Electrics Ltd.

"One of the standout aspects is their personalised approach. They take the time to understand our requirements and offer tailored solutions..."
See Global HR in action
Anna Slattery

Assoc. Dir. of Global Comms & External Affairs, The Hunger Project

"The experience... was seamless, efficient, and professional and [gave us] a valuable resource we continue to use in our annual budgeting process for staff salaries."
See Salary Benchmarking in action
Shajahan Amanulla

Global Account Manager,
Teceze Ltd.

"Saving time, reducing repetition of procedures such as having to contact multiple tax/payroll agents in the different companies... has been a great benefit."
See Global Payroll in action

Can I hire employees in Italy without setting up a company?

Yes. Global businesses can hire employees in Italy without establishing their own local legal entity by using an Employer of Record (EOR) service. Mauve Group acts as the employer on your behalf, managing employment contracts, payroll, HR administration, and local employment compliance while you continue to oversee day-to-day management of your employees.

An EOR can provide a faster, lower-complexity route into Italy for businesses looking to test the market, build a local team, or expand operations without immediately establishing an Italy entity.

What is an Employer of Record (EOR) in Italy?

An Employer of Record (EOR) in Italy is a third-party organisation that legally employs your workers on your behalf, allowing your business to hire in Italy without establishing a local legal entity. The EOR manages key employment responsibilities, including contracts, payroll, tax, social security, and compliance, while you retain day-to-day management of your employees.

Mauve’s EOR solution provides the local expertise and infrastructure needed to build your Italian workforce while simplifying the complexities of local employment.

What are the requirements for hiring employees in Italy?

Hiring employees in Italy requires businesses to comply with local employment, tax, payroll, social security, and regulatory requirements. This includes providing compliant employment contracts, adhering to applicable National Collective Labour Agreements (CCNLs), completing mandatory hiring notifications, and managing IRPEF and INPS obligations.

Mauve can help simplify the process through our Employer of Record (EOR) and Global Payroll solutions, providing the local expertise you need to hire and manage employees in Italy compliantly.

Can a foreign company employ someone in Italy?

Yes, a foreign company can employ workers in Italy, but it must comply with applicable Italian employment, tax, payroll, social security, and reporting requirements. This includes providing compliant employment terms and completing mandatory hiring notifications.

If you don’t have an Italian legal entity, Mauve’s Employer of Record (EOR) solution can provide a simpler route to hiring local employees, with Mauve managing key employment and compliance requirements on your behalf.

What are the employment costs in Italy?

Employment costs in Italy extend beyond an employee’s gross salary. Employers may need to account for social security contributions, employment-related insurance, TFR (severance pay), payroll taxes, and benefits, with costs varying according to factors such as the employee’s salary, contract type, and applicable CCNL.

Mauve can help you understand the total cost of employing workers in Italy, including local payroll, statutory contributions, and other employment costs, so you can plan your expansion with greater clarity and confidence.