Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Italy if the relationship looks like employment. |
| Employee via EOR | $85,188 โ $94,188 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Italy contractor risk: 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. Not legal advice.
Want to hire this person in Italy?
Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked โunverifiedโ needs checking with the provider or a local adviser before you rely on it.