In Italy salaries collapsed in 13 years: what happened

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In Italy salaries collapsed in 13 yearsbetween 2007 and 2020 the net wage of workers is reduced by 10 percent according toIstat. It gets even worse, according to the report of theInternational Labor Organizationwhich signals a decline of 12 percent. (find out the latest news on bonuses, Rem, Rdc and single check. Read on Telegram all the news on Invalidity and Law 104. Receive the latest updates on bonuses, work and personal finance on your mobile every day: enter the whatsapp groupin the Telegram group It is in the Facebook group. You write on Instagram all your questions. Watch free bonus video guides on Youtube channel. To continue reading the article from your mobile, tap on «Keep reading» after the image below).


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In our country the 76% of individual incomes does not reach i 30 thousand euros gross per year. These figures come out of an Istat report «Income and living conditions» framing the situation two-year period 2020/2021 (and on this front the situation has not changed much since 2022).

The question does not only concern Italy, but the decline is with us much more evident. In fact, in the same period the salaries in Japan they got off the 2 percentin Great Britain of the 4 percent.

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The Global Wage Report reports that the wage growth remained backwards compared to productivity growth of labor in large developed economies. On the total average, the gap between productivity and wage growth increased between 1999 and 2022 by 12.6 percent.

The groups that they suffered the most alone:

  • low wage workers;
  • service workers;
  • women.

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In Italy salaries collapsed in 13 years: you earn less and less

In practice in Italy the people who work they earn less and less. A constant decline, which also tells the now well-known erosion of the middle class.

But there are also other data that photograph a situation where social division is increasingly evident: compared to the few who have decidedly high salaries, there is a multitude of workers with medium/low wages. The data also has a certain impact on thepandemic effectbut it should be noted that for 2022 we must take into account the energy crisis and of inflation which has exceeded for many months the 10%.

Just the inflation is eroding purchasing power of the minimum wages.

This is the picture described by the Istat analysis:

  • half of the incomes fluctuate between 10,000 and 30,000 euros;
  • a quarter are under 10 thousand;
  • 3.7 percent exceed 70,000.

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In Italy salaries collapsed in 13 years: those under 10 thousand are growing

Those who increase it’s not the salariesbut the number of people it has incomes below 10,000 euros. The increase was notable between 2020 and 2019.

The question concerns in particular the incomes from self employed (35.5% in 2019 and 41.7% in 2020).

The wages of less than 10,000 euros for employees were the 25% (in 2019 they were 19%).

In Italy salaries collapsed in 13 years: average income self-employed

Let’s see how they’re doing autonomous (on average). The news is not encouraging at all.

The average income from self-employment, gross of taxes and contributions, is of 24,885 euros per year. In 2020 compared to 2019 it registered a reduction of 5.9%.

This is their, let’s see net how is the situation:

  • the average net income for self-employed workers is 17,046 euros (68.5% of the total);
  • with taxes, 14.1% go away from theirs;
  • another 17.4% must be paid in social contributions.

In Italy salaries collapsed in 13 years: the comparison

You will say, but they are evaluating salaries of two particular years, with 2020 marked by the pandemic and those of the previous year. True, but only partially. In fact, the analysis becomes worrying as an overall trend if the reference is to the last decade.

From 2007 to 2020, net pay fell by 10%

In fact, if we compare the variations in the components of labor costs between 2007 (i.e. the year before the 2008 economic crisis) and 2020it turns out – reads the study – that “employers’ social contributions decreased by 4%, also due to the introduction of tax relief measures, while workers’ contributions remained substantially unchanged, taxes on employees increased by an average of 2%, the net salary disposition of workers was reduced by 10%».

In the image, the arrow already tells this fact: in Italy wages have collapsed in 13 years

In Italy salaries collapsed in 13 years: the other figures

Let’s go into detail. In the 2020 net compensation of employees I am decreased by 5 percent. And the average labor costto the gross of taxes and social contributions, is 31,797 euros. Namely the 4.3 percent down compared to the previous year.

In practice the net salary for workers (on average) it is 17,335 euros. Just over half of the entire ccost of work (54.5 percent).

This means that the tax and contribution wedge weighs 14,600 euros on wages, 45.5 percent of labor costs.

The major cost is represented by social contributions, which are distributed as follows:

  • 24.9 percent paid by the employer;
  • 20.6 percent paid by workers (13.9 percent with direct taxes, 6.7 percent with social contributions.

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In Italy salaries collapsed in 13 years: what happened