LEGISLATIVE UPDATE | Decree-Law no. 62/2026 (First of May Decree)
Italy’s First of May Decree, adopted in May 2026, brought remuneration and collective bargaining back to the centre of employment compliance. The measure introduced the principle of a ‘fair wage’ while preserving the Italian model, in which pay levels are primarily determined through national collective bargaining rather than by a universal statutory minimum wage.
This distinction is important for foreign businesses. The absence of a single “national minimum wage” does not give employers unrestricted freedom to set pay. Article 36 of the Italian Constitution requires remuneration to be proportionate to the quantity and quality of the work performed and, in any event, sufficient to ensure a free and dignified existence. Courts have long used the salary tables of representative national collective agreements as the main reference point for applying that rule.
The 2026 intervention strengthens the position of agreements concluded by the comparatively most representative organisations. It also sits alongside measures intended to encourage stable employment and address exploitative practices connected with digital platforms. The direction of travel is therefore wider than a simple adjustment to minimum salary tables: the authorities are placing greater emphasis on the quality and traceability of the contractual framework used by each employer.
International employers should check whether the national collective agreement selected for their Italian personnel genuinely reflects the business activity and the employees’ roles. They should also verify job levels, seniority increases, additional monthly payments and any individual salary supplements. An apparently generous total salary may still be structured incorrectly, particularly where allowances are expected to absorb future collective increases without clear drafting or consistent payroll treatment.
The reform does not make every pay decision more complicated. It does, however, make early legal and payroll coordination more valuable. Employers entering Italy or integrating an acquired workforce should settle the applicable collective framework before issuing contracts, not after the first employee questions the payslip.