Why Italy has no minimum wage
Unlike Spain, Portugal or Germany, Italy has never approved a statutory national minimum wage. The Constitution leaves wage-setting to collective bargaining.
In practice, the CCNL (Contratti Collettivi Nazionali di Lavoro) set the minimum for each sector and cover the vast majority of workers. Proposals to introduce a legal minimum of €9 per hour have been on the table for years, with no agreement to date.
What you earn at minimum by sector
The salary floor depends on the agreement that applies to your activity. The lowest-paid CCNL, such as those for cleaning or services, set their minimums at around €7-9 per hour; industrial and technical sectors start from higher levels.
This means two Italian companies of the same size can have different labour costs depending on the CCNL they apply. Choosing the right agreement is a decision with a direct impact on payroll.
Real labour cost for your company
Social Security contributions in Italy are among the highest in Europe and are added to gross pay, with most borne by the company. On top of that comes the TFR (trattamento di fine rapporto), a deferred severance payment that accrues each year and is paid when the relationship ends.
Before setting a salary, calculate the full cost: gross plus contributions plus TFR. It is the only way to avoid a nasty surprise in your profit and loss account.
What is deductible for IRES
For your SRL, salaries and contributions are deductible expenses for IRES (24%) and reduce the regional IRAP base (≈3.9%). Hiring in Italy, with its costs, remains the way to operate with a local team.
How to choose the right CCNL
Apply the agreement of the sector to which the company belongs, not that of each worker's specific role. A classification error is later corrected with regularisations and surcharges.
Also review the pay levels of the agreement: within the same CCNL there are categories with very different minimums depending on the function.
