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Monday, June 15, 2026

Italy introduces employment law reforms - Employment Law Worldview

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.

  • (i) Fair wages

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 “...



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