Italy recently introduced Decree-Law No.62/2026 which seeks to address three key areas: (i) the definition of “fair wages”; (ii) the restructuring of social security contribution exemptions as part of efforts to boost employment levels; and (iii) the protection of workers engaged through digital platforms.
The most significant change is the introduction of a new concept of a “fair wage”. Rather than setting a fixed minimum wage, the Decree defines a “fair wage” by reference to collective bargaining.
The current benchmark for adequate remuneration under Article 36 of the Constitution is anchored to the overall economic treatment provided by the National Collective Bargaining Agreements (NCBAs) entered into between the most representative employer and trade union organisations at the national level, having regard to the relevant sector, category, principal business activity, etc. The Decree introduces the following two-tier anti-dumping mechanism: (i) where a different NCBA applies (i.e. one signed by a less representative organisation), it cannot provide for remuneration which is lower than that set by the most representative NCBA for that sector; and (ii) if there is no collective agreement in place for the sector, the minimum pay threshold must be set by reference to the NCBA whose scope most closely corresponds to the employer’s activities.
This change is being introduced to try and close loopholes that have allowed some employers to apply low-cost “minority” collective agreements – a practice known as “dumping contrattuale” – as a means of reducing labour costs while still technically complying with collective bargaining rules.
The Decree also tasks the National Council for Economics and Labor (CNEL), the National Social Security Institute (INPS), the National Institute of Statistics (ISTAT), the National Institute for Public Policy Analysis (INAPP) and the National Labor Inspectorate (INL) with collaborating to collect and share wage data in an integrated and interconnected manner, disaggregated by gender, age, disability, economic sector and company size. CNEL will be required to produce a National Report on Wages on at least an annual basis, which must be submitted to Parliament. An administrative archive of company-level and territorial collective agreements is also to be established within 30 days of the Decree’s conversion into law.
To further support wage monitoring and data collection, employers are now required to include the applicable NCBA’s unique alphanumeric code in both employment contracts and payslips. This code will be used by the Ministry of Labor, INL, INPS, CNEL and other competent bodies for monitoring compliance, detecting pay deviations and verifying the conditions for accessing regulatory and financial benefits.
The Decree also introduces rules designed to incentivise timely NCBA renewals. Where a collective agreement is not renewed within 12 months of its natural expiry date, wages will be automatically adjusted by 30% of the IPCA (national consumer price index) as a provisional supplement, pending full renegotiation. Exceptions apply in highly seasonal sectors, where any adjustment will instead be linked to sector-specific economic indicators agreed through collective bargaining.
- (ii) The restructuring of social security contribution exemptions
The Decree also introduces four targeted social security contribution exemptions for employers – the Women’s Bonus, the Youth Bonus, the Special Economic Zone (SEZ) Bonus and a Permanent Conversion Incentive – each providing a 100% employer contribution relief for up to 24 months, subject to specific eligibility criteria relating to the worker’s age, employment history and location. These exemptions are intended to boost employment levels in Italy of women, young people and workers in the SEZ, as well as to support both new hiring and the stabilisation of employment relationships through the conversion of fixed-term contracts into permanent positions. Monthly caps range from €500 to €800, depending on the scheme and geographical area, with enhanced amounts for hires within the SEZ for Southern Italy.
Access to all these incentives is expressly conditional on the individual remuneration paid to the worker meeting the “fair wage” standard set out in the Decree (see above).
- (iii) Combating digital illegal hiring practices
The third pillar of the Decree targets digital platform work. Article 12 establishes that the classification of a working relationship must be determined based on actual working conditions — regardless of the formal label given by the parties — and that where indicators of direction or control exist (including algorithmic management), a presumption of subordinate employment applies, unless otherwise demonstrated.
Digital platforms must provide workers with clear and accessible information about any automated or algorithmic systems used to assign tasks, determine pay, evaluate performance or restrict platform access (Article 14). Workers also have the right to request a human review of automated decisions affecting their working conditions. Specific protections for delivery riders are strengthened under Article 15, including mandatory identity verification, a prohibition on account transfers, and — effective 1 July 2026 — an obligation to maintain individual work ledgers for each worker, recording monthly deliveries and total amounts paid. Riders must also complete mandatory basic training within 30 days of their first assignment.
