Employing in Italy vs Sweden
A Swedish manager will recognise more of the Italian system than an American one would: collective agreements, protected employment, long leave. The differences sit in the details, and the details decide the budget.
| Topic | Sweden | Italy |
|---|---|---|
| Collective agreements | No statutory minimum wage. Pay and many conditions come from sector agreements, which cover close to 90% of employees (Medlingsinstitutet). No law extends agreements to employers that have not signed them. | Every job is placed under a national collective agreement (CCNL) and a level within it. The CCNL sets minimum pay, hours, leave, probation and notice. It is applied from the first hire, not after a union asks for it. |
| Ending employment | LAS requires objective grounds (sakliga skäl): shortage of work or personal reasons. In redundancies, the order of selection follows seniority, with up to three employees exempted (Øresunddirekt). | Dismissal needs just cause or a justified objective or subjective reason, stated in writing. Disciplinary dismissals follow a formal charge-and-reply procedure. An unfair dismissal leads to compensation or, in some cases, reinstatement. |
| Notice period | LAS minimum one month for both sides. Employer notice rises with service: two months from 2 years up to six months from 10 years (Øresunddirekt). | Set by the CCNL by level and seniority, not by statute. Typically a few weeks to several months. |
| Probation | Probationary employment up to six months; ending it needs at least two weeks' notice (Business Sweden). | Up to 6 months, length set by the CCNL, written in the contract before day one. Either side can end it without notice. |
| Annual leave | 25 days a year under the Annual Leave Act (Svensk Handel). | 4 weeks a year minimum, at least 2 taken in the year they accrue. Most CCNLs add paid hours off (ROL and ex-holiday permits). |
| Public holidays | National public holidays; agreements often add days off around them. [source to add] | 12 national holidays plus the local patron saint's day. [confirm count for 2026: 4 October holiday] |
| Sick pay | Employer pays sick pay of 80% for the first 14 days, minus a qualifying deduction of 20% of average weekly pay; Försäkringskassan takes over after that (Försäkringskassan). | Doctor sends the certificate online to INPS. Pay is split between INPS and the employer as the CCNL sets. The job is protected for a period set by the CCNL. |
| Parental leave | 480 days of parental benefit per child, 390 at sickness-benefit level, 90 reserved for each parent (Försäkringskassan). | Maternity: 5 months mandatory, paid. Paternity: 10 working days, paid. Further optional parental leave, partly paid. Shorter in total, and the mother's part is compulsory. |
| Employer contributions | 31.42% of gross pay in 2026 (Skatteverket). | About 30% to INPS and INAIL, depending on sector and role. [exact rate depends on CCNL and company size] |
| Pension | State pension plus occupational pension, normally through the collective agreement (Medlingsinstitutet). | State pension through INPS, funded by the contributions above. On top, the TFR (6.91% of pay a year) is either kept as severance or paid into a pension fund the employee chooses. |
| 13th month | No 13th month. | Mandatory under every CCNL, paid in December. Some CCNLs add a 14th in June or July. Offers quote annual gross pay (RAL). |
| Severance | None by statute. | TFR accrues every year and is paid on exit for any reason (Civil Code art. 2120), unless it has been paid monthly into a fund. |
| Working hours | 40-hour week under the Working Hours Act, often adjusted by agreement. [source to add] | 40-hour week; average with overtime cannot exceed 48 hours. Many CCNLs set fewer normal hours. |
| Non-compete | No specific statute; assessed for reasonableness, with sector guidance between the social partners. [source to add] | Valid only if written, paid, and limited in time (max 3 years, 5 for executives), place and activity. |
Comparison for orientation, read November 2026. Swedish terms are often improved by the collective agreement; Italian figures depend on the CCNL applied to the role.
Norway, Denmark and Finland
- Norway. Dismissal must be objectively justified. Statutory notice is one month under 5 years of service, two months over 5, and three to six months over 10 depending on age; a trial period of up to six months has 14 days' notice (Altinn). Holiday is 25 working days, which is four weeks and one day because Saturdays count (Arbeidstilsynet). Employer contributions are 14.1% in zone I in 2026 (Skatteetaten), so an Italian hire carries a much heavier contribution line than a Norwegian one.
- Denmark. Under the Salaried Employees Act employer notice runs from one month in the first six months to six months after nine years; the employee gives one month (Business in Denmark). Holiday is 25 days, earned at 2.08 days a month, plus a 12% holiday supplement (IDA). Danish flexibility on dismissal has no equivalent in Italy: plan Italian hires as long-term.
- Finland. Employer notice runs from 14 days under one year of service to six months after twelve years (Eurofound). Holiday accrues at two days a month, 2.5 after a full year; the holiday bonus depends on the collective agreement (SAK). Finland is one hour ahead of Italy.
- Iceland. Nordic labour model with high union coverage. [Iceland figures not checked]
What changes in the budget
From Sweden, the contribution rate looks similar: 31.42% there, about 30% in Italy. The difference is in the extra lines. Italy adds the 13th month (and sometimes a 14th), and the TFR at 6.91% of pay. Holiday is shorter by law, but the CCNL hours off close part of the gap. From Norway the Italian contribution line is roughly double.
We remove the lumpiness: in our quotes the 13th and 14th month are paid pro rata every month, and the TFR goes monthly into the employee's chosen fund. Your invoice is the same size in December as in March.
What changes in management
Swedish and Italian employment are both built for stability, so the reflexes carry over. Two things do not. First, the Italian CCNL applies by default; there is no "we are not bound by an agreement" option. Second, Italian workplaces are more hierarchical and more formal in writing. Use the probation period actively, and put role changes in a written amendment.