Italy offers a large, skilled workforce governed by national collective agreements and strong protections. All-in employer cost runs around 1.32x the gross salary, before the TFR severance accrual. Here is what to know before your first Italian hire.
Employment runs under the Civil Code and a national collective agreement (CCNL) for each sector that sets pay, levels, and conditions. Salaries are usually across 13 or 14 payments, and a deferred severance (TFR) accrues every year.
Employer social-security contributions (INPS and INAIL) come to roughly 30% of gross salary, with a deferred severance (TFR) of about one month's pay per year accruing on top.
The trattamento di fine rapporto is a deferred severance that accrues each year and is paid out when employment ends, whatever the reason.
Employees pay their INPS share plus income tax (IRPEF) with regional and municipal add-ons, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Italian contract under the right CCNL, payroll, social security, and TFR, handled. One invoice, flat $499 per month.