Italian Premier Giorgia Meloni claims real wages are finally rising in Italy, reversing a decade-long decline in purchasing power. Her remarks came in a video statement released after a cabinet meeting on Tuesday.
“Real wages are growing in contrast to what happened in the past,” Meloni said. “Between 2013 and 2022, with the previous governments, in the rest of Europe the purchasing power of wages increased by 2.5%, while in Italy it decreased by 2%.”
She said the trend began to shift in October 2023. “Families are gradually recovering their purchasing power with a wage dynamic that is better, and not worse, than that of the rest of Europe,” she added. “There is clearly still a lot to do, but the numbers that ultimately tell the reality are encouraging.”
Her comments followed a new report from national statistics agency ISTAT, which acknowledged the first signs of recovery in real wages after two consecutive years of decline. However, the report also stated that Italian real wages in early 2025 remain 8% lower than their 2021 levels.
President Sergio Mattarella, speaking one day before Meloni, said many families are still struggling with low wages, calling insufficient income “a pressing concern” across the country.
Signs of recovery
According to ISTAT’s data for the first quarter of 2025, both nominal and real wages showed growth:
- The hourly wage index increased by 4.0% in March 2025 compared to a year earlier.
- The per employee wage index grew by 3.9% over the same period.
- Monthly growth for both indices stood at 0.4% from February to March.
- Quarterly comparisons showed a 3.9% rise in hourly wages and a 3.8% increase per employee year-on-year.
This growth has been interpreted as an early sign that inflationary pressure may be easing enough for workers to regain some lost ground in real terms.
Sectoral differences
The data show that the wage recovery is not consistent across all sectors.
The industrial sector led the positive trend, with robust wage increases driven by new or updated collective agreements. Private services also recorded notable gains.
However, wages in the public administration sector remained largely stagnant. A large number of contracts in the sector have not been renewed, keeping public sector pay behind inflation. As of March 2025, only 52.7% of workers were covered by active national collective agreements, with the rest still waiting for contract updates.
Ongoing challenges
Although the government has welcomed signs of improvement, the ISTAT figures also underscore ongoing issues with Italy’s wage structure.
The average time elapsed since contract expiration remains long, particularly in the public sector. This delay continues to impact the pace at which wage updates can respond to economic changes.
