INPS - Social Security Contributions – Italy

Applied to gross salary up to annual threshold of €55,448 (2025, 2026 threshold to be confirmed). Automatically withheld by employer from monthly paycheck.

Applied to salary portion exceeding €55,448 up to maximum cap of approximately €120,000. Only 1% additional rate on higher earnings.

For employees registered post-1996, contributions cap at ~€120,000 (2025, exact 2026 figure pending). Income above this pays only minor contributions (~5% by employer). Executives have different caps.

Commercial executives pay same rates plus additional funds: Fondo Mario Negri (2% from 2026), FASI (€1,120 flat), PREVINDAI (2% up to €200k). Total burden significantly higher for executives.

Employers pay 27-32% of gross salary on top of wages (not deducted from employee). Exact rate varies by: industry sector, company size, collective bargaining agreement (CCNL), employee classification. Average around 30%.

Includes: retirement pension (largest portion), unemployment fund (NASpI), maternity/paternity fund, sickness fund, family allowances, solidarity contributions, workplace accident insurance (INAIL separate).

Employer's total cost: 100% gross salary + 30% INPS + ~7.5% TFR (severance) = approximately 138% of gross salary. Italy has one of Europe's highest employment costs.

For self-employed without VAT number or not in professional orders: 24% if enrolled in other schemes, 26.07% with VAT exclusive enrollment, 33.72-35.03% all others. Applied to business income up to ~€120,000 cap.

Enrolled in IVS scheme pay ~24% on business income plus mandatory minimum contribution of €4,515 annually (2025) regardless of income. Additional 1% on income over €55,008.

Lawyers, accountants, engineers, doctors have separate professional pension funds (Casse Professionali) with own rates (typically 10-20%) instead of INPS.