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.

Employer costs at a glance

Italy's headline numbers

~30%
Employer INPS contribution, typically ranging 29–33% depending on sector, CCNL, and company size
6.91%
Annual TFR severance accrual — genuinely payable on any exit, including a resignation
13th
Mandatory extra month's salary paid in December — a 14th month applies under some collective agreements too

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.

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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.

Get an Italy quote

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