Employer of Record in Italy

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
Talk to us about Italy

Why companies build teams in Italy

Lundi supports compliant employment in Italy for specialist hires — Milan for finance and fashion, Rome for corporate, Turin for engineering, Naples and southern regions for cost-effective hires. For larger cost-driven teams we typically recommend Poland or Portugal at significantly better unit economics.

Languages

Italian

Payroll Frequency

Monthly

Currency

EUR

Capital City

Rome

Employer Tax Rate

30.00%

Italy has high-quality senior talent in finance, design, fashion, automotive, and engineering — Milan concentrates finance and fashion, Turin engineering and automotive, Rome corporate and government-adjacent, southern regions (Naples, Bari, Catania) increasingly attractive for cost-effective tech hires. Italian labor law (Statuto dei Lavoratori) is among Europe's more protective. Employer social contributions run ~30–35% above gross. Strong fit for specialist senior hires in design, fashion, automotive, or finance — plus Italian market presence. For larger cost-driven SSC and engineering teams Lundi typically recommends Poland or Portugal.

Cost of Employment in Italy

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Italy

Employer Tax Costs in Italy

Employers in Italy are taxed approximately 30% of each employee’s salary for social contributions.

Employee Income Taxes in Italy

Employees in Italy are taxed between 23% and 43% depending on their income bracket. Employees are also taxed around 10% which goes to social contributions.

Employee Probation in Italy

In Italy, the probation period is six months for managers and three months for non-managers.

Employee Overtime in Italy

There are working hour restrictions in Italy, but they don’t apply to:Executives, managers and employees who have any form of independent decisionRemote workers and employees working from homeThe normal working week is 40 hours, and the maximum working week is an average of 48 hours every seven days (including overtime) calculated over a four-month reference period. Although there’s no defined day length, employees are entitled to a daily rest period of 11 consecutive hours every 24 hours.Overtime in Italy can not exceed 250 hours per year. Overtime must be compensated with increased salary.

Employee Notice in Italy

There is no statutory notice period in Italy, but agreed-upon notice periods must be included in employment contracts and collective bargaining agreements.

Termination in Italy

At the end of any employment contract, even for just cause and resignations, employers in Italy must pay the “Trattamento di Fine Rapporto” which is a severance pay of an employee’s all-time received salary divided by 13.5. It is an extra cost to the employer of ~7% per month.‍An employer can terminate an employee based on two reasons: 1) An objective reason such as redundancy due to economic reasons 2) A subjective reason such as a breach of their contractual duties ‍If an employee believes they have been unfairly dismissed, they can go to an employment tribunal where paid damages for a typical case are between three to six months of an employee’s salary.

How Lundi works in Italy

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.