In Italy, there is no uniform statutory minimum wage in the form of a
fixed gross hourly rate that applies to all employees. Instead, minimum
wage levels are generally determined by national collective agreements.
However, Article 36 of the Italian Constitution stipulates that employees
are entitled to remuneration that is commensurate with the quantity and quality
of their work and, in any event, sufficient.
What is the collectively agreed wage in Italy?
The individual collective agreements set so-called collectively
agreed wages or minimum wages for the respective sectors and occupations.
The amount depends in particular on the employee’s pay grade.
An employee performing basic tasks may therefore have a lower minimum
wage – even within the same collective agreement – than, for example, a skilled
worker or a manager.
In addition to pay, collective agreements regulate numerous other aspects
of the employment relationship, such as overtime, length-of-service allowances,
annual leave, additional monthly salaries and various fringe benefits.
What is meant by a ‘fair wage’?
Since 2026, the importance of collective agreements has been further
reinforced by law. The legislator now uses the term ‘salario giusto’ – fair
pay.
The reference point is not merely the basic wage set by the collective
agreement. Rather, the decisive factor is the total remuneration provided for
the employee under the relevant collective agreement. In addition to the basic
wage, this may also include other wage components and allowances provided for
in the collective agreement.
Italy thus remains committed to its collective agreement system: no
general minimum wage of, for example, 9 or 10 euros per hour has been
introduced.
Which collective agreement applies?
In determining the appropriate remuneration, the following factors are
particularly relevant:
- the sector and the area of production,
- the main activity carried out,
- the nature and size of the employer, as well as
- the employee’s specific duties and job classification.
The statutory provisions are primarily based on the collective agreements
of the main employers’ and employees’ organisations at national level. If a
different collective agreement is applied within the company, the total
remuneration provided for must, in principle, not be lower than the comparable
remuneration under these collective agreements.
Can a higher wage be agreed?
Of course, a higher wage than that provided for in the collective
agreement may be agreed. The collective agreement essentially sets a minimum
threshold. Higher salaries or additional wage components may be agreed in
the individual employment contract.
An additional personal wage component (“superminimo”) is often agreed
upon. Whether this can be offset against subsequent increases in the minimum
wages set by collective bargaining agreements depends on the specific terms of
the agreement.
When hiring an employee in Italy, it is therefore important to check both the correct collective agreement and the correct pay grade, as well as the resulting minimum wage.