How ICP pricing for Italy is built

A per-employee rate looks simple on a price sheet. Behind it sit several separate cost layers. Partnership and operations teams at global EOR and payroll platforms need to see them apart. Otherwise it is hard to compare partners, forecast margin, or explain a quote to a customer.

This article explains how an ICP rate for Italy is built, layer by layer. It does not quote figures. Exact values depend on the contract, the role and the data you send us.

Layer one: employee gross pay  

Everything starts with gross pay. In Italy this is rarely a single number. It is set by the applicable national collective agreement (CCNL), which defines minimum pay by job level, additional salary instalments, paid leave, notice periods and allowances.

The CCNL is the main variable in the whole build. Two employees with the same job title can sit under different agreements and cost different amounts. For this reason we price from the agreement and level, not from the title.

Layer two: employer contributions and mandatory charges  

On top of gross pay, the employer pays social security contributions, workplace injury insurance and other statutory charges. Rates depend on the sector, the company profile and the contract type.

These are pass-through costs. They are not our margin and they are not negotiable. We show them as a separate line, with the source and the date of the rate used, so your finance team can check them against the regulation.

Layer three: deferred and accrued items  

Italian employment carries accruals that are easy to miss in a quick estimate. Severance accrues during employment and is paid at exit. Unused leave and extra salary instalments also build up over time.

A good rate states how these are treated. They can be invoiced as they accrue, or reserved and settled at the end. Either way, the cash cost reaches you. The only question is when. We agree this with each partner up front, so there is no surprise at termination.

Layer four: the service fee  

This is the part we actually charge for. It covers the work of running Italian payroll and employer administration for your customer’s worker:

• contract drafting and employment registration
• monthly payroll processing and payslips
• filings with social security and tax authorities
• handling of leave, sickness and changes in the employment relationship
• support for your team when a case needs an answer

The service fee is the only layer where scope changes the price. A partner that wants us to handle all employee queries directly will pay differently from one that keeps first-line support in house.

Layer five: optional services  

Some services are not part of the base rate because not every employee needs them. Visa and work permit support for non-EU hires is one. Relocation help is another. Representation before social security bodies in specific cases is a third.

We price these as separate items. Mixing them into the base rate makes every hire look more expensive and hides what the partner is paying for.

What moves the total  

When a quote differs from a previous one, the cause is almost always one of these:

• a different CCNL or job level
• a different contract type, such as fixed term or open ended
• a different company profile for contribution purposes
• a change in statutory rates between quotes
• a change in service scope
• optional services added or removed

This is why we ask for structured inputs before we quote. A job title and a salary are not enough. We need the agreement, the level, the contract type and the work location.

Why we separate pass-through from fees  

We split every rate into regulated costs and our own fee. There are three reasons.

First, it keeps the comparison honest. You can compare our fee with another partner’s fee, and our pass-through lines with the regulation.

Second, it protects your margin model. If statutory rates change, only the pass-through layer moves. Your service fee stays stable.

Third, it shortens customer conversations. When your sales team can show a clean breakdown, the customer sees where each part comes from.

What we need from you  

To build a rate for your platform, we work from a small set of data points per role: the agreement, the level, the contract type, the location, and any services beyond standard payroll. For volume, we also need to know how you want accruals handled and how you want invoices structured.

For each regulated value, we document the source and the date it was checked. If a rate changes, you see it in the next statement, with the reason.

A per-employee rate is only useful if you can explain every part of it. That is the standard we build to.

Partnership teams can request the data-exchange specification to see exactly which fields we need and return.