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With a comprehensive public health and social security system, employers in Italy do not need to provide as many benefits as they might in other countries. However, it is crucial that employers comply with their social security obligations in Italy, and that they provide market-standard supplemental benefits in order to remain competitive.
Italy has a national healthcare system which provides free or low-cost healthcare to residents and citizens. Under this healthcare system, individuals have access to general practitioners, specialist doctors, hospitals, and emergency care. Things like dental and eye care may not be included in the Italian universal health care system.
It is customary for individuals to take out private health insurance in Italy to receive faster and better care — sometimes this is provided by employers. Overall the Italian healthcare system provides high-quality care, however wait times for some surgeries and operations can be long and some selective procedures may not be covered for those who do not have private healthcare.
The pension system in Italy is a pay as you go model, in which the contributions for the employee’s monthly salary go into the Italian pension system. The amount that is received after retirement relies on a number of factors, such as, years of contributions, salary history, and the age of retirement.
The pension system in Italy provides a basic pension amount that is available to all retirees who meet certain eligibility requirements. However, most people, in addition to the national pension, will contribute privately to a supplementary pension plan during their working years to increase retirement income.
Some employers find that they can achieve a competitive advantage by offering private pension schemes as part of their employment package.
In Italy, employees who become disabled are entitled to disability benefits. The amount of benefit received and type of benefits received depends on the level of disability and whether the individual is permanently or temporarily disabled.
Those who are disabled, and want to work, have the rights to do so in Italy. The law requires employers to provide reasonable accommodations for employees who have permanent disabilities
If an employee can receive unemployment benefits in Italy depends on how long they have worked. To be eligible the employee must have at least worked 13 weeks in the last 4 years. The amount of benefit paid to the employee depends on the average income and length of time they have been contributing to the National Social Security Institute in Italy. The larger the income and longer they have been employed in Italy will mean they receive a larger unemployment benefit.
The benefit is paid on a monthly basis for a maximum period of 24 months. In Italy, the individual must prove they are actively seeking employment to continue to receive the unemployment benefit.
Hire borderless talent with Horizons
Your business can easily hire employees in Italy without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Employee benefits that are mandatory in Italy are health insurance, sick leave, annual paid leave, maternity/paternity leave, unemployment insurance, and accident insurance benefits.
Horizons will ensure your company meets the standards of the Italian labor market. Ask for a free consultation from us to talk about your specific employment needs.
