Employer of Record in Italy: what one employee really costs
Italy, Europe. One software engineer at $55,000 gross per year, priced through 9 providers on 2026-09-02 exchange rates. Change the salary and headcount below.
- Employer on-cost
- +37.4%
- statutory charges on top of gross
- All-in per month
- $6,497 – $6,997
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in Italy at $55,000 gross a year costs about $1,715 a month in statutory employer charges (+37.4%), plus an EOR fee of $199 to $699 per month depending on the provider: $6,497 to $6,997 all-in, before deposits, FX margins and add-ons. Prices checked 2 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Italy
Price your own hire, line by line.
≈ EUR 47,504 gross / year · EUR at ECB reference rate, 2 Sept 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $4,583 | |
| Pension fund (FPLD, IVS contribution) | 23.81% | $1,091 |
| Unemployment insurance (NASpI, ordinary) | 1.31% | $60 |
| Vocational training levy (art. 25, Law 845/1978) | 0.30% | $14 |
| TFR guarantee fund (Fondo di garanzia, Law 297/1982) | 0.20% | $9 |
| Family allowance fund (CUAF) | 0.68% | $31 |
| Sickness insurance (commerce and services, office staff) | 2.44% | $112 |
| Maternity insurance (commerce and services) | 0.24% | $11 |
| Wage integration fund (FIS), employer share | 0.53% | $24 |
| Extraordinary wage guarantee (CIGS), employer share | 0.60% | $28 |
| INAIL work-accident insurance (tariff item 0722, office work) | 0.40% | $18 |
| Severance accrual (TFR, trattamento di fine rapporto) | 6.91% | $317 |
| Employer on-cost | +37.4% | $1,715 |
| Cost of employment, before EOR fee | $6,298 |
$6,897/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $82,769
- Fee share
- 8.7%
Checked 2 Sept 2026
Get a Deel quote$6,997/ month · 1 employee
- Fee / mo
- $699
- Per year
- $83,969
- Fee share
- 10.0%
Checked 2 Sept 2026
Get a Remote quote$6,797/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $81,569
- Fee share
- 7.3%
Checked 2 Sept 2026
Get a Multiplier quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
9 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $6,497 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $6,497/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $6,617 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $6,617/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $6,697 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $6,697/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499$459 billed annually | $6,797 | Not stated on the pricing page | 150+ | 2 Sept 2026 | Get a quote from Multiplier· $6,797/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $6,797 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $6,797/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $6,897 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $6,897/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $6,997 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 2 Sept 2026 | Get a quote from Oyster· $6,997/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $6,997 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $6,997/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 2 Sept 2026 | Get a quote from Rippling |
Same salary and statutory charges in every row; only the fee segment changes.
What Italy adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling. Engine assumptions: Employing entity averages more than 15 employees and sits in the general FIS scheme (FIS 0.80% and CIGS 0.90% both apply) = 1; Employee first insured after 31 December 1995 (pension base capped at EUR 122,295 in 2026) = 1.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| Pension fund (FPLD, IVS contribution)All private-sector employees insured with INPS | 23.81% | Gross salary , capped at EUR 122,295 / yr 33% combined: 23.81% employer, 9.19% employee. For workers first insured after 1995 the base stops at the 2026 ceiling of EUR 122,295 (INPS circular 6/2026); above that only this pension line stops, the lines below continue. | INPS2026-09-05 |
| Unemployment insurance (NASpI, ordinary)Open-ended contracts; fixed-term contracts pay a further 1.40%, not modelled | 1.31% | Gross salary Ordinary financing contribution of 1.31%. No ceiling applies to this line. | INPS2026-09-05 |
| Vocational training levy (art. 25, Law 845/1978)All employers subject to unemployment insurance | 0.30% | Gross salary Supplementary 0.30% collected with NASpI; employers can route it to an inter-professional training fund. Often shown together with NASpI as 1.61%. | INPS2026-09-05 |
| TFR guarantee fund (Fondo di garanzia, Law 297/1982)Employees whose severance accrual (TFR) follows article 2120 of the Civil Code; 0.40% for industrial executives | 0.20% | Gross salary Employer-only. Insures the severance accrual if the employer becomes insolvent. Waived on the share of TFR paid into a pension fund or the INPS treasury fund. | INPS2026-09-05 |
| Family allowance fund (CUAF)General rate for employers of INPS-insured employees | 0.68% | Gross salary 2.48% statutory rate less 1.80 points of standing relief = 0.68%. Some sectors carry further relief. | INPS2026-09-05 |
| Sickness insurance (commerce and services, office staff)White-collar employees of commerce and service-sector employers; industrial office staff pay 0% | 2.44% | Gross salary Due even when the collective agreement makes the employer pay full salary during sick leave (Law 133/2008, art. 20). | INPS2026-09-05 |
| Maternity insurance (commerce and services)White-collar employees of commerce and service-sector employers (industry: 0.46%) | 0.24% | Gross salary Finances maternity, paternity and parental-leave benefits under Legislative Decree 151/2001. | INPS2026-09-05 |
| Wage integration fund (FIS), employer shareEmployers averaging more than 5 employees that are not covered by an industry CIGO scheme or a sector bilateral fund | 0.53% | Gross salary 0.80% in total, split 0.53% employer and 0.27% employee. Employers with up to 5 employees pay 0.50% (0.33% employer). | INPS2026-09-05 |
| Extraordinary wage guarantee (CIGS), employer shareEmployers in the FIS scheme averaging more than 15 employees (Legislative Decree 148/2015, art. 20 par. 3-bis) | 0.60% | Gross salary 0.90% in total, split 0.60% employer and 0.30% employee since 1 January 2023. Falls away below 16 employees. | INPS2026-09-05 |
| INAIL work-accident insurance (tariff item 0722, office work)Office and remote desk work classified under item 0722, services tariff (Gestione Terziario) | 0.40% | Gross salary Average rate 4 per thousand for the services tariff (industry 5, crafts 6). INAIL adjusts each employer's rate for claims history, so the invoiced rate can sit above or below 0.40%. Software development is item 0726. | INAIL2026-09-05 |
| Severance accrual (TFR, trattamento di fine rapporto) | 6.91% | Added to the annual costAccrues at 7.41% of pay (1/13.5, Civil Code art. 2120) less the 0.50% Law 297/1982 contribution already paid with the pension line, so 6.91% net. Paid out at termination, or monthly to the INPS treasury fund for employers averaging 60+ employees in 2026-2027 (50+ from 2028). | INPS2026-09-05 |
| 13th and 14th monthly salaries not in total | — | The commerce and services agreement (CCNL Terziario) pays one extra month in December and one in June. The annual gross entered above already contains both: providers quote Italian salaries as 14 instalments, so nothing is added here. | Confcommercio2026-09-05 |
| Employer on-cost at $55,000 | +37.4% | $20,581 a year, $1,715 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
An Italian S.r.l. needs a notarial deed, share capital, INPS and INAIL registrations, a chosen collective agreement and a licensed payroll professional (consulente del lavoro) before the first payslip. Employer charges then depend on the entity's own sector code and headcount, so a small subsidiary with 5 or fewer staff would pay slightly less FIS and no CIGS. Some providers bill one-off onboarding items in Italy, such as the mandatory pre-hire medical check and safety training, and charge extra for Quadro and Dirigente grades (supplementary health and pension funds). For a first hire or a team under ten, an EOR is faster and avoids running Italian payroll compliance in-house.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Papaya Global fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $5,988 | $20,581 |
| 3 | $7,164 | $17,964 | $61,743 |
| 5 | $11,940 | $29,940 | $102,905 |
| 10 | $23,880 | $59,880 | $205,810 |
| 20 | $47,760 | $119,760 | $411,620 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 22 days
- Public holidays
- 12
- 13th month
- Mandatory
- Probation
- up to 6 months
- Notice
- Set by the collective agreement, level and seniority. Under the CCNL Terziario an employer dismissing a level 6-7 employee gives 15 to 20 days; for a Quadro or level 1 it is 60 days rising to 120 days after ten years. Notice runs from the 1st or 16th of the month. Severance (TFR) is paid on every exit, resignation included.
- Reviewed
- 2026-09-05
Get a quote for Italy from the providers that publish a price.
Totals for 1 hire at $55,000. Ask each provider about deposits, FX margins and mandatory add-ons for Italy: those are the lines that move.
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much do statutory employer contributions add to a salary in Italy?
- About 37.4% for an office employee under the commerce and services agreement at an employer with more than 15 staff: 30.5% of social contributions (pension 23.81%, sickness 2.44%, unemployment and training 1.61%, family allowance 0.68%, FIS and CIGS 1.13%, maternity 0.24%, guarantee fund 0.20%, INAIL 0.40%) plus the 6.91% severance accrual. On this page's example of US$55,000, roughly EUR 47,500, that is about US$20,600 a year before the provider's fee.
- Is TFR an extra cost on top of the gross salary?
- Yes. Every month the employer sets aside 6.91% of pay as trattamento di fine rapporto: 7.41% (one thirteenth and a half) less the 0.50% contribution already included in the pension line. The money is paid to the employee at termination, whatever the reason, or, for employers averaging 60 or more staff in 2026-2027, transferred monthly to the INPS treasury fund. Large EOR entities usually fall in that second group, so the cost is a real monthly outflow.
- Are the 13th and 14th salaries added on top of the annual gross?
- Not in an EOR quote. The CCNL Terziario grants a 13th salary in December and a 14th in June, but providers express an Italian offer as an annual gross paid in 14 instalments. Enter the annual figure agreed with the candidate and the engine treats it as inclusive; adding two extra months would double count.
- Why do EOR quotes for the same Italian salary differ from each other?
- Because the rates follow the employing entity, not the client. The entity's sector, headcount (FIS at 0.50% or 0.80%, CIGS only above 15 staff), the level assigned under the collective agreement, INAIL's claims-based adjustment of the 0.40% accident rate, and grade add-ons for Quadro or Dirigente hires all move the total. A quote a point or two away from 37.4% is normal; a quote several points away deserves a line-by-line breakdown.
- Is there a ceiling on employer contributions for high earners in Italy?
- Only on the pension line. For employees first insured after 1995 the 23.81% pension contribution stops at EUR 122,295 of annual pay in 2026. Sickness, maternity, unemployment, family allowance, FIS, CIGS and INAIL keep applying to the full salary, and the TFR accrual has no cap, so the effective rate above the ceiling falls to roughly 13.6% rather than to zero.