Hiring in Italy: costs, rules and the best EOR providers

Yes, a compliant labour-supply arrangement can operate through an authorised employment agency under Italy’s somministrazione rules. “EOR” itself is not an exemption from those rules.

Verify the actual employing company’s authorisation, written contracts and suitability of the assignment. The worker must receive the applicable equal-treatment protections; the client also retains statutory responsibilities as user employer.

An Srl becomes worth assessing when Italy is a lasting operation requiring direct hiring and local control, and its full running cost compares favourably with eligible agency employment.

Compare formation, accounting, payroll, insurance, internal HR and transfer costs over the same period. There is no statutory headcount at which EOR becomes cheaper or more expensive. Incorporation also creates ongoing employer obligations.

TFR accrues from eligible annual remuneration divided by 13.5 under Civil Code Article 2120, with payroll adjustments and revaluation applied separately. For example, €40,500 of eligible annual remuneration produces a €3,000 base accrual before applicable adjustments.

The EOR should show this accrual separately from its service fee and identify where the TFR is held or paid. It is deferred employee remuneration, not an optional dismissal bonus.

Yes. Accrued TFR is an employee entitlement when employment ends, including resignation, dismissal and retirement. It is separate from notice pay and any dismissal compensation.

The final settlement must account for any advances and the arrangements for TFR already allocated to a pension or statutory fund. Ending only the client’s assignment does not necessarily end the employee’s contract with the agency.

There is no single CCNL selected simply because the service is called EOR. In a licensed agency arrangement, the agency employment agreement and the user employer’s applicable classification and equal-treatment terms must be considered together.

Request the named agreements, employee level and pay schedule in the offer. A generic “Italian compliant contract” does not establish the correct minimum salary or benefits.

Italian employees generally receive a thirteenth salary instalment; a fourteenth depends on the applicable collective agreement. The EOR must accrue and pay the instalments required for the employee’s assignment and classification.

Compare annual gross remuneration, not just one monthly payslip: an annual package already including thirteen or fourteen instalments should not have those instalments added again in a cost model.

Dismissal requires the applicable lawful ground and procedure. Notice depends on the relevant collective agreement, classification and service; there is no universal EOR notice period.

Just-cause dismissal is distinct from termination with notice. In an agency arrangement, cancellation of the client assignment does not automatically terminate an indefinite employment contract. Budget the employee settlement separately from the provider’s commercial cancellation charge.

Potentially, but using an EOR does not establish eligibility for the impatriate regime. A particularly important test is the provider’s group: Revenue Agency ruling 54/2026 applied the six-tax-period overseas requirement where the foreign and Italian EORs belonged to the same group, even though the client companies differed.

Review residence history, qualifications and employer-group continuity before including tax relief in a net-pay offer.

The agency employer arranges and pays required INAIL cover for supplied employees. The premium reflects the work performed at the user business and the employee’s actual remuneration; it is not a universal flat EOR percentage.

The provider should identify the applicable risk classification in the cost calculation. Insurance does not remove the user employer’s workplace-safety duties.