Labour cost and net pay calculator 2026
Labour cost simulation
What an employee costs and what they take home
Starting from the gross monthly pay, the tool estimates the worker’s take-home pay and the annual cost to the company. You choose the status (employee, collaborator or director) and, for employees, the collective agreement and level, from which pay, number of monthly payments, contribution rates and source are derived. The calculation runs in your browser and the result is always visible. The data you enter are neither sent nor stored unless you request the report, in which case they are kept for 12 months. The report is sent to the address you provide. Subscribing to the newsletter is optional.
The online calculation is an estimate. The optional PDF report adds the tables from gross to net pay and of the annual cost item by item, the assumptions, the warnings and the legal references.
The calculator
How the calculation works
From gross to net
Social security contributions paid by the worker are deducted from gross pay, and the tool calculates personal income tax (IRPEF) with the 2026 brackets, employment tax credits, regional and municipal surtaxes and, where applicable, the tax wedge relief (Law no. 207 of 30 December 2024, art. 1, paras. 4-9). Monthly net pay is that of an ordinary month; annual net pay takes the additional monthly payments into account.
The cost to the company
The employer’s contributions (INPS, income support funds, INAIL), the accrual for severance pay (TFR) and IRAP, which can be changed in the parameters, are added to pay. Rates depend on the sector of the agreement, company size, INPS classification and the duration of the contract.
Collaborators and directors
Fees paid to collaborators and directors are treated as employment income for IRPEF purposes (art. 50(1)(c-bis) of the Income Tax Code, TUIR) and contributions are those of the INPS separate scheme, with the 2026 ceiling of €122,295.
Assumptions and limits
What is already set
All parameters are pre-filled and can be changed in the Parameters panel, which is closed by default: period, part-time, INPS and fund rates, INAIL, surtaxes, tax credits and IRAP. For collective agreements the source and the effective date of the amounts are shown.
What the calculation does not consider
Apprenticeships, statistical contribution codes, the 5% substitute tax on contract renewal increases and reduced-tax bonuses are not modelled. INAIL is not pre-filled because the rate depends on the company’s tariff item; IRAP is the ordinary 3.9% rate, without regional or sector surcharges.
Collective agreement data
Minimum pay scales come from the national collective agreement tables at the stated effective dates. Where the full contract text is needed, the reference remains the agreement applied in the company.
Notice and sources
This is an indicative simulation based on general information. It does not replace an assessment of the specific case: amounts and rates must be checked against the text of the collective agreements, INPS and INAIL circulars and company records.
Last legal check: 6 November 2026. Sources: Law no. 207 of 30 December 2024, art. 1, paras. 3-9; Presidential Decree 917/1986 (TUIR), arts. 11, 13 and 50; Legislative Decree 446/1997, art. 16; INPS circulars 6/2026 and 8/2026; INAIL circulars 25/2026 and 35/2026; Legislative Decree 148/2015, arts. 13 and 23; Law 92/2012, art. 2, para. 28; the national collective agreement tables shown in the tool.