Demand for contractors increases in Italy

contracting Italy

24th September 2018

There’s good news for international agencies which place contractors overseas – new figures show that there are plenty of opportunities to be had by looking at the Italian market.

Demand rises for temporary workers

The data, which comes from Ebitemp, an organisation which represents associations and unions for temporary workers, shows that demand from Italian employers for contingent workers is strong. The number of contractors supplied by agencies saw an increase of 7.3% year on year and the total payroll of this demographic in July 2018 was 13% higher than the same time a year ago. In addition, the number of hours worked has increased by 13.3%, year on year. It’s clear, then, that recruiters are in a prime position to capitalise on this expanding market.

Know your stuff

However, while there’s no doubt that Italy holds great potential for agencies placing contingent workers overseas, there are a few key legislative details to be aware of. Firstly, it is common for professionals to operate as self-employed or as a “Libero Professionista”. There is no risk of deemed employment, provided the candidate earns more than €18,700 per year and is highly skilled.

Also, while income tax is similar to the UK, with a top rate of 43%, social security is higher, at 28%. This is certainly something to factor in when negotiating pay. Agencies should also know that self-employed workers pay taxes twice a year, in June and November.

It also pays to be aware that, while there is currently healthy demand for contractors, there are plans which could potentially impact this. The Italian Senate recently passed a law that will limit numbers of temporary contracts and reduce the length of time that they can be renewed for from three years to two.

And, of course, once the UK leaves the EU, there could be further changes to come for UK contractors seeking opportunties in Italy. Given the increasing complexity of working in the destination, it is essential for all parties involved in a contract placement to be compliant with local legislation. The easiest, and crucially, safest, way to ensure this is to partner with an expert.

Contact the team today to find out how we can help you.


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