Labour cost · Italy 2026

The true cost of an employee in Italy (2026)

Italian 2026 rates: from gross pay to what the worker really costs your company and what they take home net, contract by contract.

Your inputs

Gross annual salary (RAL)

€

Contract type

Contribution reliefs

Tax deductions

INAIL premium (risk class)3%

Cassa Edile (provincial)0%

Regional and municipal surtaxes2%

Productive hours / year

Your target markup30%

True cost

True annual company cost€42,122Gross plus employer contributions and TFR

Take-home net per monthWhat the worker actually pockets

€1,801

Net per yearAfter contributions and taxes

€23,412

Tax wedgeGap between company cost and net

€18,711

True hourly costAnnual cost divided by productive hours

€26.33

Minimum hourly rate to quoteHourly cost plus your markup

€34.22

Estimate using Italian 2026 rates (IRPEF 23/33/43%, with the second bracket cut by the 2026 Budget Law, art. 13 TUIR employee deductions, INPS ~9.19% employee and ~30% employer, gestione separata 35.03% co.co.co and 26.07% professionals, flat-rate 86% coefficient and 15% or 5% tax). Employee monthly net is over 13 instalments; P.IVA and co.co.co over 12. It ignores dependent-family deductions and the reductions for income above 75,000 EUR; reliefs are simplified; artigiani and commercianti pay IVS contributions with a fixed minimum. Surtaxes, INAIL, Cassa Edile and the coefficient vary and are editable. Not a substitute for your accountant.