🇮🇹 Hire in Italy: cost, rules and best EOR options
Strong engineering, design and manufacturing skills with competitive salaries relative to northern Europe. Employment costs are high and tied to collective agreements, and there is no national minimum wage.
- Employer on-costs: 30–45% of gross salary (on a $60,000 salary, about $78,000–$87,000 total)
- EOR onboarding: not verified; own entity: not verified
- Probation: Up to 6 months by law (Civil Code art. 2096), fixed by the CCNL by role.
- Currency: Euro (EUR)
- Data confidence: medium, verified 2026-10-05
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What it costs to employ someone in Italy
Employer on-costs run roughly 30–45% on top of gross salary. Low = about 30% employer social security (PwC: overall burden ~40% with ~30% employer, ~10% employee; varies by category, sector and size). High is derived: add TFR severance accrual (~6.91% of annual gross) and the statutory 13th month (8.33%) = ~45%; secondary sources quote 45-55% total employer cost over gross salary when INAIL, 14th month and collective-agreement items are included. Excludes paid leave.
| Contribution | Rate | Notes |
|---|---|---|
| INPS social security (employer) | ~30% of gross remuneration (29-32% by sector and size) | Employee share ~10%. Rates vary by category, sector and firm size. |
| TFR (trattamento di fine rapporto) accrual | ~6.91% of annual gross | Accrued every year and paid at termination for any reason; secondary source. |
| INAIL (work injury insurance) | varies by risk class | Rate not verified. |
| 13th month (tredicesima) | 1/12 of annual pay | Effectively universal, paid in December; a 14th month depends on the CCNL. |
Employer withholds the employee INPS share (about 10% per PwC) and IRPEF income tax (2026 brackets: 23% to EUR 28,000, 33% to EUR 50,000, 43% above - secondary source) plus regional and municipal surtaxes.
Mandatory benefits
- 13th month salary
- TFR severance accrual
- Minimum 4 weeks' annual paid leave
- CCNL-based extras: 14th month, supplementary health, meal vouchers
- Maternity leave (5 months) with INPS allowance
Employment rules at a glance
| Payroll | Monthly; 13th month in December, 14th (where provided) in June/July |
|---|---|
| Probation | Up to 6 months by law (Civil Code art. 2096), fixed by the CCNL by role. |
| Notice & severance | Notice is set by the applicable national collective agreement (CCNL) by seniority and grade (commonly 15 days to several months). TFR is paid on exit. Dismissals without cause carry indemnity or reinstatement depending on hire date and firm size. |
| Working time | 40 hours per week standard, with a 48-hour weekly maximum including overtime averaged over four months; the CCNL may set lower hours and overtime premiums. |
| Paid leave | At least four weeks' paid annual leave (D.Lgs. 66/2003) plus about 12 public holidays; CCNL often adds days (general knowledge). |
| Minimum wage | Not verified |
Termination
Dismissal requires just cause (giusta causa) or justified reason (giustificato motivo), with a formal procedure and written reasons. Post-2015 hires have an indemnity scale for unjustified dismissal, since adjusted by the Constitutional Court. Check the CCNL.
Employee or contractor in Italy?
Freelancers (partita IVA) are common, but misclassification as parasubordinate (co.co.co.) or employees risks claims and sanctions. Gestione Separata contributions apply to the self-employed (24-35.03% in 2026 per PwC). Moderate to high risk.
Compare contractor vs employee cost →
Hiring through an EOR in Italy
A foreign company needs an Italian entity or an EOR. The correct CCNL is critical because pay floors and benefits come from it. Timelines not verified.
Typical onboarding: EOR not verified; own entity not verified. CET, UTC+1, and CEST, UTC+2 in summer; 6 hours ahead of US Eastern.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Italy
Related
FAQ
What is the employer social security rate in Italy?
About 30% of gross salary (PwC), varying by sector and size, plus INAIL and TFR.
Is there a minimum wage?
No statutory minimum; pay floors come from the applicable CCNL.
What is the TFR?
A severance accrual of roughly 6.91% of annual gross, paid at termination for any reason.
Is the 13th month mandatory?
Effectively yes; the 14th depends on the CCNL.