Employer of Record in Italy
Employ top talent in Italy without establishing a local entity. TopSource manages INPS social security, TFR severance accruals, 13th and 14th-month pay, and CCNL collective agreement compliance through our local setup.
Why hire in Italy through an EOR
Italy is one of Europe’s largest economies, but managing local employment requires navigating detailed statutory requirements. Employer INPS social security contributions average 29% to 32% of gross salary, TFR severance pay accrues annually for every employee (~6.91%), additional monthly salaries (13th and optional 14th month) are contractual, and wage floors are governed by sector collective agreements (CCNL). An Employer of Record manages these obligations end to end.
Hire in Italy without setting up an entity
Italy offers access to technical, commercial and creative professionals across Europe, but managing local employment requires navigating detailed statutory requirements. Employer INPS contributions average 29% to 32% of gross base pay. Additionally, every employee accrues Trattamento di Fine Rapporto (TFR) severance pay equal to ~6.91% of gross earnings per year, which must be paid out upon departure.
Compensation schedules in Italy are structured around 13 or 14 monthly payments per year. A 13th-month salary (tredicesima) is required across all industries, while a 14th-month salary (quattordicesima) is mandated in key sectors such as commerce, banking and logistics. In the absence of a statutory minimum wage, compensation floors and employment terms are determined by the applicable sector collective agreement (CCNL). An Employer of Record simplifies these operational requirements: TopSource legally hires your Italian staff under the appropriate CCNL, manages INPS, INAIL, IRPEF and TFR calculations, handles 13th and 14th-month payouts, and maintains compliance with Italian labour law.
Calculate Your Employee Costs in Italy
Enter a gross base salary to determine the total monthly cost of hiring in Italy — inclusive of employer INPS contributions, TFR severance accruals and 13th/14th month pay allocations.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertItaly
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How EOR in Italy works: the process through TopSource
Employer Costs in Italy at a Glance
Employer Costs in Italy Explained
Employing staff in Italy carries structured statutory overhead. Employer INPS social security contributions average 29% to 32% of gross salary, with additional coverage provided through INAIL workplace accident insurance. All employees accrue statutory TFR severance pay at ~6.91% of gross earnings per year, which is paid out upon employment termination. Furthermore, annual compensation is distributed over 13 or 14 monthly payments depending on the applicable sector CCNL. Total employer overhead typically equals at least approximately 1.4 times gross base salary.
EOR or entity setup: which one fits your Italy plan?
Establishing an Italian corporate entity (Società a Responsabilità Limitata / Srl) requires notary registrations, INPS and INAIL account setups, local bank account creation and ongoing CCNL management. Utilising an EOR provides fast market entry, whereas incorporating an Srl becomes advantageous once local headcount scales significantly.
Consider an EOR if you’re:
- Hiring your first one to five people in Italy
- Sponsoring a non-EU hire under the Decreto Flussi quota system
- Still validating the Italian market before committing capital to an Srl
- Working to a hiring deadline measured in days, not weeks
Why TopSource for Employing in Italy
TopSource delivers Employer of Record and global payroll solutions designed for growing international businesses.
We offer transparent pricing without hidden administrative charges or long-term lock-ins. You receive a dedicated account manager available by phone to answer questions on Italian labour compliance — including CCNL role classification, TFR accrual management and extra-month payouts. We combine in-country compliance experience with reliable operational support.
“Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”
“Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”
“TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”
More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
Read more
Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
Read more
Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
Read more
Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
Read more
Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
Read more
Key terms in Italy
The Italian employment rules that come up most when you hire through an employer of record, each explained in our glossary.
Comunicazione Obbligatoria
UniLav form
The online notice an Italian employer sends to the public employment services when it hires, extends, converts or ends employment.
Libro Unico del Lavoro
Single employment register (LUL)
The register every private employer in Italy keeps for its employees, recording their details, pay and attendance.
Smart Working Agreement
accordo di lavoro agile
The written agreement under Law 81/2017 that lets an employee work partly away from the employer’s premises, without fixed hours.
ROL and Ex-Festività Permits
riduzione dell’orario di lavoro
Paid hours off on top of annual leave. The national collective agreement (CCNL) for the job sets how many.
Patto di Non Concorrenza
Article 2125, Civil Code
A paid, written non-compete limited in scope, time and place, for up to 3 years, or 5 for executives.
Employee Categories
dirigenti, quadri, impiegati, operai
The four legal categories of Italian employees, which shape CCNL levels, duties and dismissal rules.
Mandatory Disability Hiring Quota
Law 68/1999
Employers with 15 or more staff must employ workers with disabilities: one, two, or 7% of the workforce.
Cassa Integrazione
CIGO, CIGS, FIS
Short-time work support paying 80% of lost pay, capped at €1,423.69 gross a month in 2026.
Decreto Flussi and Nulla Osta
nulla osta al lavoro
Yearly quotas for non-EU workers and the work clearance an employer applies for on the click days.
Welfare Aziendale
Article 51, Income Tax Code (TUIR)
Benefits on top of salary that are tax-free within set limits, such as €10 electronic meal vouchers.
Frequently asked questions
Total employer overhead in Italy is typically at least around 1.4 times gross base salary once everything is included: employer INPS social security (roughly 29% to 32% of gross), the ~6.91% annual TFR severance accrual, and the 13th (and, in some sectors, 14th) month payments. INAIL accident insurance is added on top, scaled to job risk. We quote the exact all-in figure per hire before you commit.
TFR (Trattamento di Fine Rapporto) is a statutory severance accrual under Article 2120 of the Civil Code. It is calculated as annual gross salary divided by 13.5, a gross accrual of about 7.41%, or roughly 6.91% once the 0.50% INPS contribution is deducted from it. It is paid out when employment ends for any reason, including resignation or dismissal. New hires can leave their TFR with the company or transfer future accruals into a supplementary pension fund. We accrue and track it every month.
Italian pay is spread across extra monthly instalments. The 13th month (tredicesima) is mandatory for all employees and paid in December. It is part of contractual base pay, not a discretionary bonus. The 14th month (quattordicesima) is an additional payment, usually in June, required by specific sector CCNLs such as commerce, retail, services and logistics. We accrue and disburse both on their statutory schedules.
A CCNL (Contratto Collettivo Nazionale di Lavoro) is a national sector collective agreement. Because Italy has no statutory national minimum wage, the CCNL sets mandatory pay floors, job classifications, probation limits, notice periods and leave rules. Classifying each role under the correct CCNL is essential for compliance, and it is the first thing we do for every Italian hire.
An EOR gives fast market entry with employees working in days and INPS, INAIL, IRPEF, TFR and CCNL compliance handled. Incorporating an Srl, with notary registration, social-security account setups and ongoing CCNL management, becomes advantageous once local headcount scales. Many clients enter with an EOR and incorporate later, and we transfer the team when the time comes.
Hire Anywhere with Our EOR Services
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