How to hire remote employees in


If you’ve found someone in Italy you’d like to hire remotely, you’re in the right place. There’s a lot of misinformation about what it means to hire abroad—and we’re going to clear that up by the end of this page.

Country snapshot

Euro (EUR)

What to know before you hire in 


Hiring in Italy can be confusing, but it’s easier when you know what you’re doing. If you want to hire remote talent in Italy, you have two options: Hire people as contractors, or hire them as employees.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Italy than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Italy.

Taxes in 


Employer tax

Social Security           

Individual tax


  • Up to 15,000
  • Over 75,000


  •  0.00%
  • 43.00%


Paid Time Off (PTO)

The mandatory minimum number of paid leave is 26 days and employees can carry over the unused days to the following year, however, they must be used by June 31st.  Any remaining unused PTO will be cashed out.   

Employers can decide when the vacation is taken. Also, permission to carry over holidays should be stated in the contract. The employee is to take leave in the following way: 

  • for at least two consecutive weeks in the event of a worker request. or the remaining two weeks, in the 18 months following the end of the vesting year. The leave matures during the employment relationship, from the moment of hiring.
  • PermessiEx-Festività (suppressed holidays) -are given to every employee independently from seniority or National Labour Agreement, and they are given due to 4 bank holidays that were abolished. To make up for those days’ employees would’ve had off they are given 32 hours of leaves to be enjoyed at their leisure. 
  • Permessi ROL (reduction in working hours)-are given to employees starting with their 3rd year of employment and they are 28 hours per year. From their 5thyear of employment, they accrue56 hours per year. 

Public Holidays

There are 11 national holidays and 1 regional holiday.

If a public holiday falls on a Sunday, the day is carried over to Monday or paid in lieu.

Sick Days

For the first three days, the employee is entitled to a 100% payment which is covered by the employer. This applies to the first two illnesses of the year; for the third illness 66% is covered and for the fourth illness 50% is covered. After that, the employee is not covered for the first three days of illness.

From the 4th to the 21st day of the illness the employee is entitled to 75% of the salary of which 50% is covered by the government and 50% by the employer.

From the 21st day onward, the employee is entitled to 100%, of which 66% is covered by the government and the rest by the employer.

Maternity Leave

Mothers are entitled to 5 months of maternity leave. Two months must be taken before birth. The employee will receive a 100% pay. Employers make the payment and can later ask for reimbursement of 80% from the INPS.

Paternity Leave

Within the first 5 months of the child’s birth fathers receive 10 days of compulsory leave and a paid 100% of their salary. An extra optional day of leave as an alternative to the mother.   

New fathers must notify the employer 15 days prior to taking leave.  

If the mother does not take maternity leave (due to death, infirmity, or the father having exclusive custody), the father is entitled to three months’ paternity leave after the birth of the child. These rules also apply if the mother is self-employed. 

Parental Leave

In Italy, an employee is able to take up to 10 months of unpaid parental leave: 

  • For a mother after maternity leave: Can take up to 6 months of unpaid leave 
  • A single parent: Can take up to 10 months of unpaid leave 

If a mother chooses to not take parental leave after maternity leave, she is entitled to work 6 hours a day until the child is 12 months old.

Other Leave

Paid permits, aka “Permessi Retribuiti”, are a special amount of paid leave out of which paid permits can be used only for specific reasons stated in each CCNL, the most common are the following:

  • Handicapping of a family member
  • Family reasons

During the first 2 years of employment: 32 hours per year (only “festivita’ soppresse”)

Third and fourth years of employment: 68 hours per year (36 hours for permits + 32 for “festivita’ soppresse”)

Marriage Leave


Bereavement Leave

In Italy, under “Permessi Retribuiti”, the employee entitled to have a special amount of paid leave.


Termination Process

In Italy, written notice must be given to the employee.   

If a labor court deems the termination unfair, the employer must either reinstate the employee or pay additional compensation.   

Employers must provide notice of termination regarding all types of termination unless it is dismissal due to serious disciplinary reasons. Notice periods can be set in the collective agreement or payment in lieu of the notice period. 

A contract of employment may be terminated in any of the following ways:

  • Resignation
  • Dismissal by the employer (including dismissal for “just cause”)
  • Expiry of a fixed term
  • Mutual agreement
  • Retirement.

Notice Period

The notice period in Italy is:

From Employer:

  • 30 Days notice for Employees
  • 60 notice for managers.

From Employee:

  • 30 Days notice for Employees
  • 45 notice for managers.

Severance Pay

In Italy, employers must set aside funds for severance (TFR) for the employee and is to be paid out to them within 6 months of leaving the company.   

TFR is calculated by: 

  • Taking the gross annual salary from January 1st to December 31st and is divided by 13.5 
  • Deduct the taxable income (pension, social security) and multiply this amount by 0.5% 

Based on an additional percentage by the National Statistical Institute, the final TFR amount is increased.  

Probation Period

Probation period is until 6 months for managerial level up to 2 months of probation for below managerial level.

Employee requirements in 


Working Hours

A normal workweek is 8 hours a day and 40 hours a week.


Overtime is limited to 2 hours a day and must be approve by the company.

There is no set overtime pay, however, overtime pay must be more than the regular rate.

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