21 November, 2024

Understanding social security contributions in Italy: what employers need to know

Employers hiring staff in Italy must navigate Italy’s social security system, which includes contributions for pensions, unemployment, and healthcare. Italian law mandates both employee and employer contributions, calculated based on employees’ salaries. Compliance with these contributions is essential to avoid penalties and ensure employees are properly insured and receive their entitlements. For foreign companies, setting up the appropriate payroll system can be complex, especially since Italy’s contribution rates vary by industry and role. Many employers turn to payroll management services or Italian HR consultants to stay compliant with contribution requirements, simplifying payroll processes and ensuring legal adherence

 

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