Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
EUR € (Euro)
Employer contributions
~22.6% (employer ISS)
Minimum wage
€1,000 EUR (approximate, sector-dependent)
Payment frequency
Monthly
Calendar year (Jan 1 to Dec 31)
Capital
San Marino City
Timezone
CET (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~€3,678 EUR total
/month
For a gross salary of
€3,000 EUR gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~22.6% (employer ISS)
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll → ISS contributions → withholding tax
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~€3,678 EUR total
Example gross salary
€3,000 EUR gross/month
~€1,905 EUR net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~€678 EUR
Employer contributions on that salary
Employer contributions
~22.6% (employer ISS)
Employee contributions
~8.5% employee ISS
Total cost above gross
~18% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~€2,400 EUR
Per month
San Marino City
€2,500 - €4,000 EUR
~15%
Serravalle
€2,200 - €3,500 EUR
~8%
Monthly gross. National average salary per year:
~€28,800 EUR
Minimum wage
€1,000 EUR (approximate, sector-dependent)
Paid:
Monthly
Extra pay
Annual Bonus
Common, discretionary
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
9% → 11% → 13% → 17% → 22% → 27% → 33%
Tax year:
Calendar year (Jan 1 to Dec 31)
Filing calendar
Monthly
Social security payments
June 30
Income tax
By March 31
Employee tax certificate
Certificazione stipendio
June 30
Annual return
Dichiarazione dei Redditi
Late payment penalties
Late ISS: surcharges; late tax: interest
Who collects what
Ufficio Tributario
Income tax
ISS
Social security and health
Ufficio del Lavoro
Labor market and work permits
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Ferie
21 working days
Public holidays
9 public holidays
Sick leave
Malattia
ISS pays from day 4 at ~66%
Maternity leave
17 weeks
100% ISS
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contratto a Tempo Indeterminato
Fixed term
Contratto a Tempo Determinato
Independent contractor
Libero Professionista
Collective agreements
CCNL di riferimento
Ending employment
Indennità di licenziamento
How it is calculated
Per ISS and labor law norms
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Work Permit Non-Compliance for Foreign Workers
Risk Level: HIGH
San Marino has strict work permit requirements for non-Sammarinese workers. Hiring without proper permits triggers fines and forced repatriation.
ISS Under-Declaration
Risk Level: MEDIUM
ISS contributions must cover all remuneration including fringe benefits. Under-declaring taxable benefits is a common audit finding.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.