Employing in Italy vs South Africa

The legal differences a South African company runs into when it hires its first person in Italy. Both countries protect employees against unfair dismissal, but in different ways. South Africa sets a statutory floor in the BCEA and tests dismissals for substantive and procedural fairness at the CCMA. Italy places a national collective agreement (CCNL) over every contract, charges social contributions of around 30% on the whole salary and accrues severance (TFR) that is paid on every exit.

Topic	South Africa	Italy
Statutory floor	The Basic Conditions of Employment Act covers almost all employers and workers. Its working-hours rules exclude senior managers and employees earning above the earnings threshold. Sectoral determinations and bargaining council agreements add minimums for each sector. Source	Statute plus the applicable CCNL, which sets pay scales, job levels, notice, the 13th (and often 14th) month and leave for every employee, managers included. Source
Written terms	Written particulars of employment when the employee starts work (BCEA s.29). Source	Written contract or hiring letter with the information listed in the Transparency Decree, given at the start. The hire must be notified online (UniLav) by the day before. Source
Ending employment	Under the Labour Relations Act, a dismissal must have a fair reason (conduct, capacity or operational requirements) and follow a fair procedure. Disputes go to the CCMA or a bargaining council. Source	After probation, a dismissal needs just cause or a justified subjective or objective reason, stated in writing. An unjustified dismissal costs 6–36 months' pay (3–18 months for employers with 15 or fewer staff) and, in some cases, leads to reinstatement. Source
Notice	In writing: 1 week (6 months' service or less), 2 weeks (more than 6 months, up to 1 year), 4 weeks (1 year or more) (BCEA s.37). Source	Set by the CCNL by job level and seniority, typically from a few weeks to several months. Source
Severance	Only on dismissal for operational requirements (retrenchment, LRA s.189): at least 1 week's remuneration per completed year of service. A 2025 Bill proposes 2 weeks. Source	TFR: about 6.91% of annual pay accrues every year and is paid on any exit, including resignation. Five or more redundancies trigger the collective dismissal procedure. Source
Social contributions	UIF: 1% employer plus 1% employee on pay up to R17,712 a month. SDL: 1% of payroll for employers whose payroll is above R500,000 a year. COIDA: an annual assessment. There is no state pension contribution. Source	INPS on the whole salary: roughly 30% employer and 9.19% employee (plus 1% above €56,224 in 2026). INAIL, the 13th month and TFR come on top. Source
Income tax	PAYE: from 18% on taxable income up to R245,100 to 45% above R1,878,600 (2027 tax year). Source	IRPEF: 23% to €28,000, 33% to €50,000 and 43% above, plus regional and municipal surcharges. Source
Annual leave	21 consecutive days per annual leave cycle, or by agreement 1 day for every 17 days worked. Source	At least 4 weeks a year, plus 12 national public holidays from 2026 and CCNL leave hours (ROL). Source
Sick leave	Paid sick leave equal to 6 weeks of normal working days in each 36-month cycle, paid by the employer. Source	Paid from day one with an online medical certificate. INPS and the employer share the cost, and the job is protected for a period set by the CCNL. Source
Parental leave	At least 4 consecutive months' maternity leave, which the BCEA does not require the employer to pay (UIF pays benefits), plus 10 days' parental leave. Following the Constitutional Court's 2025 ruling, parents may share the leave. Source	5 months' compulsory maternity leave paid at 80% by INPS, 10 working days' paternity leave at 100%, plus parental leave. Source
Restraint of trade	Common law: a restraint is enforceable unless it is unreasonable and against public policy. The law does not require the employer to pay for it.	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	There is no bilateral social security agreement with Italy. South Africa is not on the INPS list of non-EU countries with an agreement. Source	Anyone working in Italy for an Italian payroll pays INPS from day one. A South African posted worker cannot keep home coverage instead of INPS. Source

General comparison for orientation, not legal advice. South African figures are from SARS and the Department of Employment and Labour, sources read on 10 November 2026. Italian figures depend on the CCNL for the role.

What it means for your budget

In South Africa, statutory employer on-costs are small: UIF is capped, SDL is 1% and retirement funding is contractual. In Italy, INPS applies from the first euro, and the 13th month and TFR come on top, so an employee costs roughly 1.36–1.40 times gross salary. Run the numbers in the cost calculator.

What it means for your plans

South African managers already know that a dismissal needs a fair reason and a fair procedure. Italy follows the same principle, but the reasons differ, the written formalities are stricter and the remedies are set in months of pay. Because there is no social security agreement, a South African employee working in Italy pays into INPS from day one. If you have no Italian company, an Employer of Record holds the contract, runs payroll and handles INPS for you.

Guides for companies in South Africa

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