Minimum wages in Italy: Setting, adequacy and policy debate

In Italy the minimum wage setting is mainly based on sectoral collective agreements. The wage system is marked by the existence of considerable shares of employees receiving hourly salaries below the minimum levels set by arrangements executed by social partners and by an insufficient work intensity, thus increasing the working poor rate. Social partners are sceptical about a system based on minimum wage set by law, since they would prefer a mechanism consisting of the generalised extension of the provisions contained in sectoral agreements. The political debate on the introduction of a statutory minimum wage became vivid after the 2018 electoral campaign. In 2019 the new parliamentary majority built up by the 5 Star Movement and the Democratic Party let envisage that a regulation on minimum wage could be adopted in the near future, with a strong involvement of the social partners in its determination.