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Italy’s Real Wages Still 8.8% Below 2021 as Pay Growth Stalls, Istat Says

Istat’s Q3 update points to a stalled recovery in purchasing power driven by a backlog of expired collective contracts.

Overview

  • Istat reports the contractual hourly wage index was flat in September versus August and up 2.6% year on year.
  • Average contractual pay rose 3.3% in January–September 2025 compared with the same period in 2024, leaving real pay below pre‑2021 levels.
  • Public administration led annual gains at 3.3% due to recent renewals and indemnities, outpacing industry at 2.3% and private services at 2.4%.
  • At the end of September, 46 national contracts covered 56.9% of employees, while 5.6 million workers (43%) awaited renewals, with an average wait of 27.9 months.
  • Istat notes five contracts were implemented in Q3; a new domestic workers agreement signed this week takes effect November 1 with phased pay increases starting January.