At a glance
- Decree‑Law No. 62/2026, in force from 1 May 2026, introduces a comprehensive reform of the labour market, focusing on pay equity, employment incentives and digital platform work.
- The decree introduces the concept of a 'fair wage', identified by reference to collective agreements concluded by the most representative social partners, without introducing a statutory minimum wage.
- Access to public employment incentives is conditional on compliance with the 'fair wage', with practical implications for the choice of applicable collective agreement and pay structures.
- The decree strengthens incentives for stable employment through targeted social security contribution relief, subject to selective conditions such as net job creation.
- New safeguards are introduced for platform workers, with a substance‑based approach to employment status and enhanced transparency obligations for digital platforms.
With Decree‑Law No. 62 of 30 April 2026, in force since 1 May 2026, the Italian legislator introduced a structured reform of the labour market, built around three main pillars:
- Strengthening pay equity.
- Revising employment incentives.
- Addressing exploitation risks in work mediated through digital platforms.
The most significant systemic development is the introduction of the concept of a 'fair wage'. In line with Article 36 of the Italian Constitution, the decree identifies collective agreements signed by the comparatively most representative trade unions and employers’ organisations as the benchmark for determining overall remuneration. Rather than introducing a statutory minimum wage, the legislator has chosen to reinforce the role of leading collective bargaining, with the aim of countering contractual dumping and promoting greater consistency in pay levels across businesses.
A key operational feature of the reform is the explicit link between compliance with the 'fair wage' and access to public incentives. Contribution relief and other benefits provided under the decree are conditional on the application of remuneration packages that comply with the relevant collective agreement benchmarks. This has clear implications for employers in terms of selecting the applicable collective agreement and reviewing the internal coherence of pay structures.
From an active labour market perspective, the decree introduces and strengthens a range of social security contribution exemptions designed to incentivise stable employment. These include contribution relief for open‑ended hires of women, workers under 35 and employees engaged in economically disadvantaged areas, as well as specific incentives for the conversion of fixed‑term contracts into permanent contracts. These measures are generally subject to selective eligibility criteria, such as net employment growth and the absence of prior dismissals.
The decree also addresses work performed through digital platforms, introducing measures aimed at tackling so‑called 'digital labour exploitation'. Employment status is assessed on the basis of the actual manner in which work is performed, regardless of the formal classification adopted by the parties. Algorithmic management of work is expressly taken into account, resulting in stronger worker protections and new transparency and traceability obligations for platform operators.
Finally, the reform is complemented by measures on work‑life balance and support for collective bargaining renewals, as part of a broader policy objective to improve overall job quality.
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