Employing in Italy vs Australia
The legal differences an Australian company runs into when it hires its first person in Italy. The structure will feel familiar: a statutory floor plus an industry instrument, like the NES plus a modern award. The difference is that the Italian collective agreement (CCNL) covers everyone, including managers, dismissal needs a reason from the end of probation, and on-costs are well above 12% super.
| Topic | Australia | Italy |
|---|---|---|
| Minimum standards | The National Employment Standards apply to all employees in the national system; awards, agreements and contracts cannot provide less. Many senior staff are award-free. Source | Statute and the applicable CCNL apply to every employee, from junior staff to managers (quadri) and executives (dirigenti, who have their own CCNL). No one is "award-free". Source |
| Minimum pay | National Minimum Wage $26.44 an hour or $1,004.90 a week from 1 July 2026; award rates by classification. Source | No statutory minimum wage; CCNL minimum by job level, paid in 13 or 14 instalments. Written terms per the Transparency Decree. Source |
| Ending employment | Unfair dismissal claims after 6 months (12 for employers with fewer than 15 staff), if covered by an award or agreement or below the high income threshold; Small Business Fair Dismissal Code; 21 days to apply. Source | After probation, dismissal needs just cause or a justified subjective or objective reason, in writing. Unjustified dismissal costs 6–36 months' pay (3–18 for 15 or fewer employees) or reinstatement. Source |
| Notice | NES 1 to 4 weeks by service, plus 1 week if over 45 with 2 years' service; payable in lieu. Source | Set by the CCNL by job level and seniority, typically weeks to several months. Source |
| Redundancy and severance | NES redundancy pay 4 to 16 weeks for 1–10 years' service, 12 weeks at 10 years or more; small businesses exempt. Source | TFR: about 6.91% of pay accrued each year and paid on any exit, including resignation; collective procedure from 5 dismissals in firms over 15. Source |
| Retirement and social contributions | Super guarantee 12% of qualifying earnings; from 1 July 2026 Payday Super, due within 7 business days of payday; maximum contribution base $270,830 for 2026–27. Source | INPS on the whole salary, roughly 30% employer and 9.19% employee (plus 1% above €56,224 in 2026), plus INAIL, the 13th month and TFR. Source |
| Income tax | PAYG withholding; 2026–27 resident rates 0%, 15%, 30%, 37%, 45% plus 2% Medicare levy. State payroll tax above a threshold. Source | IRPEF withheld monthly: 23% to €28,000, 33% to €50,000, 43% above, plus local surcharges. No separate payroll tax. Source |
| Annual and long service leave | 4 weeks annual leave; long service leave under state and territory law, for example after 7 years. Source | At least 4 weeks a year, plus 12 national public holidays from 2026 (4 October restored by Law 151/2025) and CCNL leave hours (ROL). No long service leave. Source |
| Sick leave | 10 days paid personal/carer's leave a year for full-time staff, carried over. Source | No day cap: paid from day one with an online certificate; INPS 50% from day 4 and 66.66% from day 21, topped up by the CCNL; job protected for the comporto period. Source |
| Parental leave | Government Parental Leave Pay of $1,004.70 a week (2026–27), up to 26 weeks per family for births from 1 July 2026, plus NES unpaid parental leave. Source | 5 months compulsory maternity leave at 80% via INPS (often topped up), 10 working days compulsory paternity leave at 100%, plus parental leave. Source |
| Non-compete | Restraint of trade doctrine; Government announced a ban for workers below the high income threshold, effective from 2027 after legislation. Source | Art. 2125 Civil Code: in writing, limited in object, time (5 years for executives, 3 for others) and place, and paid for. Without payment it is void. Source |
| Social security agreement | An Australia–Italy agreement exists for pensions, but Italy is not on the ATO list of agreements giving a certificate of coverage against double contributions. Source | Anyone working in Italy for an Italian employer or EOR pays INPS from day one; posted Australians may face both SG and INPS. Source |
General comparison for orientation, not legal advice. Australian figures are from the Fair Work Ombudsman, ATO and Services Australia, sources read on 10 November 2026. Italian figures depend on the CCNL for the role.
What it means for your budget
In Australia you add 12% super, plus payroll tax and workers' comp where they apply. In Italy, INPS applies from the first euro, and the 13th month and TFR come on top, so a salary costs roughly 1.36–1.40 times the gross. It is predictable because it follows the CCNL tables. Run the numbers in the cost calculator.
What it means for your plans
Australian managers are used to a six-month window before unfair dismissal applies and to award-free contracts for senior staff. In Italy, protection starts when probation ends, every role sits in a CCNL level, and redundancy needs proof that the role went and could not be redeployed. Use probation deliberately. If you have no Italian company, an Employer of Record holds the contract, runs payroll and handles INPS for you.
Guides for companies in Australia
- Modern awards and the NES vs the Italian CCNL
- Unfair dismissal in Australia vs dismissal rules in Italy
- Notice and redundancy pay vs TFR and collective dismissal
- Superannuation and PAYG vs INPS and IRPEF: the real employer cost
- Annual, personal and long service leave vs leave in Italy
- Paid Parental Leave vs maternity, paternity and parental leave in Italy
- Non-compete reform in Australia vs art. 2125 in Italy