Why hire in Italy through an EOR
Two costs foreign employers regularly miss
Italian employer INPS contributions run to roughly 30% of gross salary — but the two costs that genuinely catch people out are different. TFR severance accrues at about 6.91% of gross every single year and must be paid out whenever the employment ends, including a simple resignation. And there's no national minimum wage at all — pay floors come entirely from the applicable sector collective agreement, and picking the wrong one is a common, expensive mistake.
No entity required
Employ staff in Italy without registering a company or running your own INPS and TFR administration.
TFR properly accrued
We build the ongoing severance liability into your quote from day one — not as a surprise on exit.
Correct CCNL applied
With no statutory minimum wage, choosing the right collective agreement genuinely matters — we get this right.
Independent advice
We identify the correct CCNL for the specific role before you commit — the wrong one changes the pay floor, the benefits, and your legal exposure.
Deal directly, if you'd rather
One of our genuinely active markets
We've introduced clients to HR experts in Italy as recently as this year — a real, active market for us. If you'd rather discuss your specific situation before committing, get in touch and we'll walk you through exactly what an Italian hire involves, TFR and CCNL included.
Ask about an Italy hire →Employer costs at a glance
Italy's headline numbers
Employer costs explained
Why the real cost of an Italian hire is easy to underestimate
INPS — around 30%, no separate pension scheme
Italian employer social security contributions run through INPS at roughly 30% of gross salary, varying by sector, applicable CCNL, and company size — pension provision is bundled into this single contribution rather than sitting separately. Employees pay 9.19% up to an annual ceiling of €122,295 for 2026; above that, only a small additional employer contribution continues.
TFR — accruing whether or not you plan for it
Every employee in Italy accrues TFR (severance pay) at roughly 6.91% of gross salary every year, calculated under a specific statutory formula. Crucially, this isn't just paid on termination — it's owed whenever the employment relationship ends, including a voluntary resignation. It's a real, ongoing liability from day one, not a cost that only appears if things end badly.
No minimum wage — the CCNL decides everything
Italy has no statutory national minimum wage. Instead, pay floors, many working conditions, and often the mandatory 13th (and sometimes 14th) month salary all come from the applicable Contratto Collettivo Nazionale di Lavoro — the sector-specific collective agreement. Selecting the correct CCNL for a given role is genuinely important, since it shapes both cost and legal obligations, and getting it wrong is one of the most common mistakes foreign employers make in Italy.
Employment basics
What's standard for an Italian employment contract
Employer INPS
~29% to 33%
Varies by sector, CCNL, and company size — pension is bundled in, not separate.
TFR severance
~6.91% of gross, annually
Owed on any exit, including resignation — a genuine ongoing liability.
Minimum wage
None statutory — set by CCNL
The applicable sector collective agreement determines the pay floor.
Income tax (IRPEF)
23% / 33% / 43%, three bands
The middle band was cut from 35% to 33% under the 2026 Budget Law.
Before you budget an Italian hire
Get our free spreadsheet of employer social charges across 150 countries and see how Italy compares.
Common questions
Hiring in Italy, answered
Do I really owe TFR even if the employee resigns?
Yes — TFR severance is payable whenever the employment relationship ends, regardless of who initiated it. It accrues at roughly 6.91% of gross salary every year, so it's a genuine ongoing cost, not something that only appears at a difficult termination.
How do I know what the minimum pay actually is?
Italy has no national minimum wage — the applicable CCNL (sector collective agreement) sets the floor for that specific role and industry. Choosing the right one matters significantly; we handle this correctly for every hire.
Do I need an Italian entity to hire someone there?
No — through an Employer of Record arrangement, we become the legal employer, handling INPS, TFR accrual, and the correct CCNL application, while you keep full control of the person's day-to-day work.
Ready to talk about an Italian hire?
Tell us the role and we'll give you the real, fully-loaded cost — TFR and the right CCNL included — and the fastest compliant route.
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