Employer of record in Italy: what we know about cost
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On a EUR 35,000 salary, the known portion of Italy's employer cost is 30.72% (EUR 10,752): the 23.81% IVS pension contribution to INPS, from 2026 secondary summaries, plus a TFR accrual of about 6.91%, whose formula we have not confirmed on an official text; other INPS items and INAIL accident insurance add more and are not yet in our figure. The provider's own fee is separate: from $199 a month (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster), per price pages checked October 16, 2026. Do not simply multiply a monthly salary by 12: Italian pay is normally spread over 13 or 14 monthly payments.
An employer of record in Italy is an Italian employer that hires your worker under the right national collective agreement (CCNL), pays INPS and INAIL contributions, accrues TFR and runs payroll, while you manage the work.
- Public holidays
- 12 national holidays from…
- Currency
- EUR
On this page
Why Italian employment runs on collective agreements
Italy has no statutory minimum wage. National collective agreements (CCNL) set minimum pay by sector and level, and they also set most of the terms a US employer expects to find in law, such as probation and notice. Picking the CCNL is the first decision your EOR makes, and it drives cost.
- Pension (IVS): employer 23.81%, employee 9.19%. For workers first insured after December 31, 1995, contributions stop at the 2026 ceiling (massimale) of EUR 122,295 a year, up from EUR 120,607. The employee pays an extra 1% on pay above EUR 56,224 a year (EUR 4,685 a month).
- Floors: the 2026 minimum daily taxable pay is EUR 58.13 and the weekly minimum for credit EUR 244.74 (INPS February 2026 notice, as reported by secondary summaries).
- TFR: the trattamento di fine rapporto builds up every year and is paid out when employment ends. Budget it as a cost now.
- Public holidays: 12 national holidays from 2026, after Law 151/2025 restored October 4 (Feast of St. Francis), plus the local patron saint's day.
- Payroll: monthly, in 13 or 14 payments a year.
Not yet confirmed from an official source: which CCNL terms apply to 13th and 14th month pay, annual leave, probation, notice, unfair dismissal indemnity and weekly hours. INPS publishes no single private-employer rate table, so the sector items below are also open. Ask your EOR to name the CCNL and level in the offer.
Employment costs and rules in Italy
| Item | Italy |
|---|---|
| Employer social contributions | IVS pension 23.81% confirmed (secondary) plus other INPS items and INAIL that vary by sector, size and risk (not confirmed today) |
| What the employer pays | IVS (pension) employer 23.81%, employee 9.19%; NASpI, CUAF, FIS or CIG, maternity, sickness, TFR guarantee fund: rates vary by sector and size, not confirmed today; INAIL accident insurance by tariff item and risk, employer only (office work falls under tariff item 0722; rate not confirmed) |
| Caps and ceilings | 2026 pension contribution ceiling (massimale) EUR 122,295 per year, only for workers first insured after Dec 31, 1995 (or who opted for the contributory system). Employee pays an extra 1% on pay above EUR 56,224/yr (4,685/mo). Daily minimum taxable pay EUR 58.13; weekly minimum for credit EUR 244.74 |
| Employee contributions | About 9.19% (IVS) plus 1% above EUR 56,224; apprentices 5.84% |
| Minimum wage | No statutory minimum wage; minimums are set by national collective agreements (CCNL) |
| Public holidays | 12 national holidays from 2026 (Oct 4, Feast of St. Francis, restored by Law 151/2025) plus the local patron saint day |
| Payroll frequency | Monthly (13 or 14 payments) |
| Sample salary used | EUR 35,000 per year gross including 13th/14th payments |
| Employer cost on that salary | 30.72% floor (EUR 10,752) = IVS 23.81% (8,333.50) + TFR 6.91% (2,418.50); other INPS items and INAIL not confirmed, so the true figure is higher |
Checked October 16, 2026. Source type: secondary (INPS news page dated Feb 2, 2026 found but its body did not load; figures from informazionefiscale.it and centrofiscale.com; holiday from fiscal-focus.it and ance.it). Sources are listed at the end of this page.
What an EOR charges to employ someone in Italy
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
Known cost of a EUR 35,000 employee
The sample is EUR 35,000 gross a year, already including any 13th and 14th payments.
| Line | Per year |
|---|---|
| Gross salary (13 or 14 payments) | EUR 35,000.00 |
| IVS pension, employer 23.81% | EUR 8,333.50 |
| TFR accrual, 6.91% | EUR 2,418.50 |
| Known employer portion (30.72%) | EUR 10,752.00 |
| EOR fee at $599 a month | EUR 6,387.63 |
| Known portion plus salary and fee | EUR 52,139.63 |
Ceiling and thresholds: INPS Circular 14/2026. Rates: centrofiscale.com and informazionefiscale.it (secondary). TFR: about 6.91% (pay divided by 13.5, less 0.5%), formula not yet confirmed on an official text. Fee: $599 (Deel, Remote) in euros at 1.1253. Checked Oct 2026.
IVS on EUR 35,000 is EUR 8,333.50 and the TFR accrual EUR 2,418.50, together EUR 10,752, which is 30.72 points. The yearly fee of $7,188 equals EUR 6,387.63. At EUR 35,000 the pension ceiling does not apply.
Not included yet: NASpI unemployment, CUAF family allowance, FIS or CIG wage guarantee, maternity, sickness and the TFR guarantee fund, whose rates vary by sector and company size; and INAIL accident insurance, priced by tariff item (office work falls under item 0722). The real employer cost is higher than 30.72%.
An Italian EOR shortlist
| Provider | Our score | EOR fee per month | Contract term |
|---|---|---|---|
| Multiplier | $459 (annual) or $499 (monthly) | No minimum term; 30 days to process a termination | |
| Oyster | $699 | No minimum term; 30 days' notice | |
| Remote | from $599 ($699 in a March 2026 help article) | 12-month default term that auto-renews; pay-as-you-go offered | |
| Deel | $599 | Month-to-month, but promo order forms need 2 years |
HRPricing scores dated October 17, 2026; published prices and terms checked October 16, 2026.
Italian quotes differ most in the INPS and INAIL lines and in the CCNL chosen, so ask every provider to itemize both under a named agreement and level. Our ranking rules are in how we score; see the best EOR list and the Oyster, Remote and Deel reviews.
A società in Italy or an EOR
Your own Italian company would register with INPS and INAIL, choose a CCNL and run a 13 or 14 payment payroll. At $7,188 a year per head, four EOR hires cost $28,752 in fees. See EOR versus entity for the trade-offs, and the EOR cost index to compare Italy with Spain and France.
Hiring an Italian partita IVA contractor
Freelancers with a VAT number invoice you directly, with no INPS employer share and no TFR. If the work is employment in substance, those are the back costs. For freelance work, compare contractor management tools or a contractor of record.
Frequently asked questions
How much does an employer of record cost in Italy?
Does Italy have a minimum wage?
What is the INPS pension ceiling in 2026?
How many public holidays does Italy have in 2026?
Why do Italian salaries have 13 or 14 payments?
Sources (15)
- INPS: Circolare numero 14 del 09-02-2026 (checked Oct 16, 2026)
- European Central Bank: Euro foreign exchange reference rates (rate for Oct 16, 2026)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- inps.it/it/it/inps-comunica/notizie/dettaglio-news-page.news.2026.0... (checked October 16, 2026)
- informazionefiscale.it/contributi-INPS-2026-dipendenti-istruzioni-c... (checked October 16, 2026)
- centrofiscale.com/contributi-inps-busta-paga-2026 (checked October 16, 2026)
- fiscal-focus.it/quotidiano/il-quotidiano/articoli-lavoro/istituita-... (checked October 16, 2026)
- deloitte.com/content/dam/assets-shared/docs/services/tax/2026/dttl-... (checked October 16, 2026)
- ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchan... (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.