The degree of spatial localization of the Fe 3d levels in the quasi-two-dimensional correlated insulator iron phosphorus trisulphide (${\mathrm{FePS}}_{3}$) is probed using resonant and angle-resolved photoemission in the range h\ensuremath{\nu}=40\ensuremath{\sim}65 eV. Our results indicate that the 3d levels in this compound are not as localized as assumed by an existing ionic model. Spectra can be adequately fitted using an atomic multiplet theory for the 3${\mathit{d}}^{\mathit{n}\mathrm{\ensuremath{-}}1}$ final state modified by the presence of an octahedral ligand field. However, a relatively low Racah exchange parameter B=0.075 eV is deduced and is interpreted in terms of greater hybridization with neighboring sulfur atoms than in iron oxides and halides. Resonant photoemission spectra collected near the iron M edge yielded excitation spectra composed of three prominent peaks approximately characterized by Fano line shapes. Systematic variation of the Fano asymmetry parameter q through the 3d multiplet is attributed to differential hybridization of various Fe 3d levels with sulfur 3d orbitals. Finally, we report angle-resolved photoemission results in the mirror symmetry planes, which indicate that some components of the 3d multiplet are substantially delocalized by band formation parallel to the layers. We summarize and discuss these results in terms of the covalency of this material.