Italian wages growing more slowly than inflation
New figures show Italian workers’ purchasing power is once again under pressure.
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Contractual wages in Italy were 2.5 per cent higher in September than a year earlier. That is less than inflation: contractual wages are therefore failing to keep pace with rising prices.
Italy’s statistics office Istat reported on Friday that the wage index remained unchanged in September from August. Compared with September 2025, both hourly wages and wages per employee rose by 2.5 per cent. The figures cover wages set out in collective agreements.
In the first nine months of 2026, contractual hourly wages were on average 2.5 per cent higher than in the same period of 2025. Istat writes that wage growth fell behind inflation for the second quarter in a row. Contractual wage growth therefore did not fully compensate for rising prices.
The increase in contractual wages varies by sector. According to Istat’s breakdown, wages in the private sector rose by 2.3 per cent year on year in September. The increase was 3.3 per cent in agriculture, 2.6 per cent in industry and 2.1 per cent in commercial services. In the public sector, the increase was 3.2 per cent.
The wage index does not measure the actual income of every worker, but the development of amounts determined by collective agreements. Istat bases the index on a fixed employment structure. Individual promotions, job changes and differences between workers may therefore remain outside the picture.
The new figures come at a time when the Italian economy is barely growing. Istat reported on Friday that gross domestic product did not increase in the third quarter compared with the second quarter. According to Istat, there was annual growth of 0.8 per cent. The stagnation of the economy thus coincides with contractual wage growth falling behind inflation.
For workers, a wage increase of 2.5 per cent represents a gain in purchasing power only if prices rise more slowly. The current figures offer no indication of that. Istat stresses that these are contractual wages, not a complete measurement of disposable income; taxes, benefits and individual working hours can change the picture for households.
The Italian government and social partners therefore face a question of distribution: higher wages can support purchasing power, but can also mean higher costs for companies. The statistics published on Friday describe that development, but contain no new decision on wage policy.
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One story, several perspectives
What is established
- Istat published new figures on contractual wages in Italy on 30 October.
- Wages rose by 2.5 per cent year on year in September.
- According to Istat, wage growth fell behind inflation.
- Italy’s GDP did not grow in the third quarter compared with the second quarter.
Left
Arguments The figures show that workers need protection against a loss of purchasing power, for example through stronger collective bargaining, higher minimum wages or targeted income support.
Values Purchasing power, worker protection and a fairer distribution of economic growth are central.
Consequences Without intervention, households may spend less and inequality and poverty may increase. From this perspective, higher wage demands could also support domestic demand.
Centre
Arguments The government should monitor developments closely and give employers and trade unions room to reach agreements by sector. Targeted support may be needed where purchasing power is under the greatest pressure.
Values Macroeconomic stability, feasibility and consultation between government, employers and employees.
Consequences A moderate and targeted approach can support purchasing power without fuelling inflation further, but may mean that recovery is slow for some groups.
Right
Arguments Wage increases should primarily reflect productivity and companies’ ability to pay. Structurally higher wages or broad subsidies could weaken competitiveness and push prices up further.
Values Competitiveness, fiscal discipline and scope for entrepreneurship.
Consequences A more restrained policy could protect companies and employment, but would mean that workers may experience a loss of purchasing power for longer when inflation is high.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The key figures and publication date were directly confirmed by Istat. The context on economic growth and wage differences between sectors was checked against a second public source.
- confirmed Contractual wages rose by 2.5 per cent in September 2026 compared with September 2025. — Istat states that both hourly wages and wages per employee rose by 2.5 per cent year on year. source
- confirmed Wages fell behind inflation in September. — Istat states that wage growth was lower than inflation for the second quarter in a row; this was also reported in independent coverage. source
- confirmed Wages in the private sector rose by 2.3 per cent, compared with 3.2 per cent in the public sector. — This breakdown is presented in la Repubblica’s public reporting based on Istat. source
- confirmed Italy’s gross domestic product remained unchanged in the third quarter from the second quarter. — The preliminary Istat figures are summarised in this way in la Repubblica’s reporting. source
Editor's note
It is certain that contractual wages were 2.5 per cent higher in September than a year earlier and that Istat published this series on 30 October. The figures measure contractual wages, not purchasing power or the disposable income of every household directly.Sources
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