Employer of Record in Italy (EOR in Italy) by INS Global

Country Guide

Employer of Record in Italy (EOR in Italy)

Last updated: July 3, 2025

Capital City

Rome

Languages

Italian

Currency

Euro (€)

Population Size

~ 60.3 million (2025 estimate)

Employer Taxes

27% – 32%

Employee Costs

9% – 10%

Payroll Frequency

Monthly

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Italy, renowned for its dynamic economy and strategic location in Europe, offers vast opportunities for international businesses seeking expansion. 

However, entering the Italian market involves navigating intricate labor laws and tax regulations. 

An Employer of Record (EOR) in Italy can simplify this process by acting as your local partner, ensuring seamless market entry and ongoing compliance with all necessary regulations.

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Choosing Between an EOR and Company Incorporation in Italy

While setting up a subsidiary in Italy is feasible, opting for an EOR presents several advantages:

  • Speed – An EOR like INS Global can facilitate a faster setup process in Italy, allowing you to start operations and onboard staff swiftly. Establishing a local subsidiary may take several months, whereas an EOR can have your team up and running within weeks or even days.
  • Compliance – Both EORs and subsidiaries must comply with Italian tax laws and labor regulations. EORs offer local expertise to manage these requirements efficiently, ensuring your business is consistently compliant without relying on in-house experts.
  • Cost – EOR services are generally more cost-effective for smaller teams or short-term projects than establishing a subsidiary, helping you avoid the initial costs of incorporation and ongoing administrative overheads. For larger enterprises, EORs provide streamlined integration into global payroll systems.
  • Control – While incorporation grants full control over HR, financial, and operational aspects, EORs provide similar oversight of your workforce while minimizing administrative responsibilities and potential liabilities.

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Advantages of an Italian EOR On Your Business

icon EOR

Simplified Entry Process

An EOR in Italy navigates the complexities of market entry by handling detailed tax and labor laws, ensuring you remain compliant from day one.

icon EOR

Reliable Compliance Management

Italy’s regulatory environment can be challenging, but EORs are equipped to ensure your business stays in line with local tax codes, labor regulations, and social security contributions.

icon EOR

Liability and Risk Reduction

As your legal employer in Italy, an EOR helps minimize the risks linked to employment laws, ensuring your operations are fully compliant and protected.

icon EOR

Concentration on Core Business Goals

Delegating HR responsibilities such as hiring, payroll management, and tax handling to an EOR allows you to focus on your business’s primary objectives and expansion efforts.

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Cost Planning and Optimization

EOR services are typically more cost-effective than establishing a local subsidiary, particularly for smaller teams or temporary projects, helping you avoid initial setup costs and continuous administrative burdens.

How an Employer of Record in Italy Operates in 3 Steps

1

Step 1 – Thorough Planning & Needs Assessment

Collaborating with an EOR in Italy, such as INS Global, begins with a comprehensive evaluation of your business goals. This includes assessing the number of employees, their roles, and your timeline for expanding into Italy.

The EOR adapts its services to meet your unique requirements, ensuring a seamless entry into the Italian market.

2

Step 2 – Seamless Setup, Recruitment & Onboarding

Whether building a new team in Italy or relocating current employees, an EOR manages all vital legal procedures. This includes handling visas, work permits, payroll, and contract management, ensuring full compliance with Italian labor laws.

Acting as your legal employer in Italy, the EOR relieves you of the complexities and costs associated with establishing a local entity.

3

Step 3 – Continuous Management & Compliance Support

Once your operations are established in Italy, an EOR takes charge of ongoing HR and payroll functions. This includes salary processing, overseeing employee benefits, and ensuring compliance with health insurance and social security contributions.

The EOR serves as the HR intermediary between you and your Italian team, managing administrative tasks and addressing employee issues, allowing you to focus on business expansion.

5 Essential Factors for Selecting the Best Employer of Record in Italy

Selecting the right EOR in Italy is key to a smooth market entry. Consider these 5 important factors:

  1. Track Record and Expertise – Seek an EOR in Italy with a solid track record and strong reputation, such as INS Global. Client reviews and industry recognitions can be indicators of their trustworthiness.
  2. Wide Range of Services – Ensure the EOR in Italy provides comprehensive services or can customize their offerings to suit your business needs. This might include visa and work permit assistance, payroll management, tax compliance, and navigating Italy’s tax and labor regulations.
  3. Scalability – Opt for an EOR in Italy that can adjust its services as your business expands. They should be able to support a growing workforce and changing business demands.
  4. Transparent Communication – Select an EOR in Italy known for clear and consistent communication. They should inform you about regulatory updates, deadlines, and any issues that may arise. Look for dedicated support and online tools for easy access to information.
  5. Clear Pricing Structure – Compare the pricing models of EOR providers in Italy. Ensure their fees are clear and competitive, with no hidden costs. Independent advice can help you secure the best deal.

INS GUIDES

Check Our Italian Labor Law Guide

Learn how the Italian Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
Italy Labor Law Guide | INS Global

Italy Labor Law Overview - 2025 Updated

Employment Contracts in Italy

Contracts in Italy must be in Italian or English and must specify employment terms, including salary, benefits, working hours, termination clauses, and minimum wage requirements. An EOR in Italy ensures that your contracts meet local labor law standards.

Probationary Periods

Probation periods in Italy typically extend up to 6 months. An EOR can assist in designing probation periods that comply with local laws and provide an opportunity to assess new hires.

Working Hours

The standard work week in Italy is generally 40 hours, with overtime restrictions. EOR services help monitor work hours and ensure adherence to overtime regulations.

Health Insurance and Social Security

Contributions to health insurance and social security are required from both employers and employees. Your EOR manages these contributions through the payroll system.

Severance Pay

Severance pay is required under certain conditions, such as termination without cause. An EOR provides guidance on severance pay practices to ensure compliance with Italian laws.

Types Of Leave

Paid Leave

Employees in Italy are entitled to several forms of paid leave, including public holidays, annual leave, sick leave, and maternity leave. An EOR manages leave requests and ensures compliance with Italian labor laws.

Handling these complexities internally can be daunting and time-consuming. Collaborating with an EOR in Italy ensures your business complies with labor laws, protecting you from potential risks and allowing you to focus on expansion.

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Frequently Asked Questions

faqs

An EOR in Italy simplifies the expansion process by managing compliance with Italian labor laws and tax regulations, allowing you to quickly and efficiently hire staff without the need for a local entity.

An EOR in Italy ensures that all employment contracts comply with Italian labor laws, including detailed provisions for salary, benefits, and termination clauses, providing peace of mind for your business.

Yes, an EOR in Italy manages all aspects of tax compliance in Italy, including filing returns and ensuring timely payment of all taxes due, reducing the administrative burden on your business.

An EOR in Italy can facilitate the relocation process for expatriates by handling visas, work permits, and compliance with Italian immigration laws, ensuring a smooth transition for international employees.

An EOR provides expert guidance on Italian labor laws and assists in resolving disputes, ensuring that your business remains compliant and minimizing potential liabilities.

An EOR in Italy manages the provision of employee benefits, including health insurance and social security, in line with Italian regulations, ensuring employees receive their entitlements.

Yes, an EOR offers comprehensive payroll services, ensuring accurate salary payments, tax withholdings, and social contributions, all compliant with Italian law.

An EOR ensures that employee terminations are conducted in accordance with Italian labor laws, including proper notice periods and severance pay, to protect your business from legal risks.

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Italy

Date Day Holiday Notes
1 January Wednesday New Year’s Day
6 January Monday Epiphany
20 April Sunday Easter Sunday
21 April Monday Easter Monday
25 April Friday Liberation Day
1 May Thursday Labour Day
2 June Monday Republic Day
15 August Friday Assumption Day (Ferragosto)
1 November Saturday All Saints’ Day
8 December Monday Immaculate Conception
25 December Thursday Christmas Day
26 December Friday St. Stephen’s Day

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