Unlike the majority of EU countries, Italy does not have a legally established national minimum wage. Although the issue continues to cause contention among politicians, trade unions, and the public, it remains unresolved.
Whether you are navigating Italy’s professional landscape as a newcomer or have a solid network in the country, Remitly is committed to helping you manage your finances as smoothly as possible to make the most of your earnings.
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What is the current minimum wage in Italy?
Overall, the average yearly income for a worker in Italy after taxes hovers around €24,000 EUR, which comes out to an average salary of €1,200 EUR per month.
Employment contracts should specify both gross salary and net salary, including social security contributions and other benefit payments.
Although the European Union issued a directive mandating Member States to adopt a minimum wage by November 2024, the debate in Italy continues.
Current Prime Minister Giorgia Meloni is against establishing a minimum wage at the national level, and politicians, unions, and other stakeholders have failed to agree on an appropriate sum and other issues related to contracts.
The contrasting stances of key government figures makes for a complex challenge to enshrining a minimum wage in the Italian constitution. Still, pressure from the EU may force the issue over the next year or so.
Low wages remain a problem in certain sectors and areas of the country, and fluctuations in the labor market add further difficulties.
The unemployment rate in 2024 has hovered around 6%, and undocumented and precarious work are subjects of heated discussion.
Nevertheless, there are laws in some regions governing minimum wages for workers in certain contexts. For example, the Comune di Napoli (the municipal government for the City of Napoli) approved legislation in July 2024 requiring all entities with contracts with the municipality to pay workers an hourly wage of at least €9 EUR.
Moreover, various sectors offer protections for workers’ rights and wages through collective bargaining efforts between trade unions and employers.
These national collective bargaining agreements (contratti collettivi) guarantee a base compensation for all contracts in the sector. The contracts are available on the website of the Consiglio Nazionale dell’Economia e del Lavoro.
Understanding the cost of living in Italy
While the average yearly income in Italy is lower than that of neighboring countries like France, Switzerland, and Germany, the cost of living is also generally lower.
Living in large cities or popular tourist areas will result in higher monthly expenses, while living in smaller cities or the countryside may cost less. Posted rental prices may or may not include the cost of utilities, and many apartment complexes (condominio) have additional monthly fees).
Rome
As the country’s capital, Rome can be more costly when it comes to rent and daily expenses. In fact, housing prices in Rome have recently spiked, meaning higher costs for both renters and buyers.
For students, a private room in a shared flat will likely cost around €500 EUR, while renting a one-room apartment (monolocale) averages around €800–€900 EUR per month, depending on neighborhood and size. A monthly public transport pass costs €35 EUR, and you can expect to spend a minimum of €250 EUR for groceries.
Milan
As the economic powerhouse of Italy, costs in Milan can be even greater than in Rome. Prices for a one-room apartment start around €800–€900 EUR per month, but the cost of other regular expenses like groceries, daycare, and eating out is higher in Milan than in Rome. A monthly public transport pass is €39 EUR.
Other areas
Some of the smaller cities in Italy, particularly Bologna, Florence, and Venice, have disproportionately high rental costs. These are generally cities that are popular with tourists and also have important universities.
However, other smaller cities have lower price tags, and it is possible to find apartments for rent from €300 EUR. The cost of groceries is also lower outside of major urban centers, although the availability of convenient public transport may be limited, making driving a necessity.
Purchasing a property in Italy requires more up-front capital, but renting is common in Italy and can serve as an extra source of income if you decide to move elsewhere.
How do wages in Italy vary?
Average wages in Italy tend to be higher in Northern Italy and lower in Southern Italy. Wages also vary considerably based on sector, with professions in the energy sector, engineering, and medicine (especially in the private sector) being among the most lucrative. Skilled workers and degree holders generally earn more.
Factors like years of experience, education, and additional qualifications can impact your monthly salary. Per collective bargaining agreements, companies in a given sector are legally obligated to provide salary increases after a certain amount of time—usually two or three years—with the same company.
The amount of the increase also varies depending on the sector.
In addition to your base wages, collective bargaining agreements also stipulate various other benefits. These can include private pension contributions, private health insurance, extra holidays, vouchers for meals or transport, and so on. Certain costs, such as medicines, can also be reclaimed when filing your taxes. Italy also offers additional deductions for immigrants who meet certain criteria.
Guaranteed benefits for all workers
Labor laws for all full-time contracted workers guarantee certain benefits and working conditions from Italian employers. These include
- Payments into the social security and healthcare system.
- Four weeks of paid vacation time.
- Maternity leave of up to five months, paid at 80% of the mother’s regular salary.
- Paternity leave of 10 days, paid at 100% of the father’s regular salary.
- The “tredicesima” (thirteenth month) bonus, paid in December and calculated based on the number of months worked during the year.
How do Italy’s wage rates compare to neighboring countries?
Among the EU countries without a statutory minimum wage, Italy is joined by Denmark, Finland, Sweden, and Austria. Pay in Europe in general tends to be lower than American salaries.
Many European countries offer higher wages compared to Italy, but the cost of living is generally higher as well.
- France’s minimum monthly salary is approximately €1,426.30 EUR per month for a 35-hour work week.
- Germany’s minimum monthly salary is €2,151 EUR for a 40-hour work week, but the cost of living is higher in Germany compared to Italy or France.
- In Austria, monthly minimum earnings are around €2,020 EUR (including two yearly bonuses), and the cost of living is slightly higher than that of Germany.
- In Slovenia, net monthly remuneration is fixed at €902 EUR.
- Croatia’s minimum wage law requires a net monthly income of €677. Both Croatia and Slovenia have lower costs of living than Italy.
- Switzerland, which uses Swiss francs rather than euros, has an average monthly income of approximately ₣6,788 CHF (about €7,300 EUR). However, Switzerland also ranks among the most expensive countries in the world. Like Italy, Switzerland has no national minimum wage, although it does have minimum wages in each canton.
- Malta, Italy’s southern island neighbor, has a monthly minimum wage of about €925 EUR, and the cost of living is generally proportionate and comparable to Italy.
Employment tips for working in Italy
Italy has laws protecting workers in a number of important respects, including for workers who become sick, workers who are injured on the job, and requirements for justification in the case of contract termination.
For example, employees who become sick or are injured are guaranteed from 30 up to 180 days of leave, depending on the length of time with the employer.
However, payment of one’s salary during sick leave depends on the specifics on one’s contract.
Given the range of employment contract types and labor unions, getting informed about the requirements and standards in your industry is a good idea.
Additionally, consider building your own personal safety net to complement public welfare benefits by investing a portion of your income and opening a private pension fund.
If you are a remote or self-employed worker for a non-European company, you can apply for a digital nomad visa to live and work from Italy. Take a look at the EU’s immigration portal for information in English.
Additional resources
Although Italy doesn’t have a national minimum wage, you can get an idea of what kind of salary to expect by checking standards for your sector.
Join the official board (albo) for workers in your profession to ensure that you stay up to date and have access to resources to advocate for yourself when negotiating contracts.
Registering with an albo also usually includes payments into a dedicated pension fund for professionals in that field.
You can continue exploring the realm of work in Italy on the CGIL website, which represents Italy’s labor unions. Consult Italy’s economic data from the OECD. You can also learn more about life in specific cities by checking the local municipality (comune) websites:
Whether you are heading to Italy to study abroad for a few months or plan to stay long-term, Remitly can help you manage your finances and send money safely.