Modest Wage Growth in Italy Amid Lingering Inflation Effects

Average hourly wages in Italy rose by 3.5% during the first half of 2025 compared to the same period in 2024, according to national statistics office Istat. However, the agency emphasized that real-term contractual wages “remain approximately 9% below January 2021 levels” due to the severe inflation experienced in recent years.

Istat further reported that its index for hourly contractual wages rose 0.5% in June 2025 compared to May 2025, and showed a 2.7% year-on-year increase compared to June 2024. The annual increase varied by sector: 2.3% for industrial employees, 2.7% for private service workers, and 2.9% for public administration staff.

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