Salaries in Italy for local and foreigners

The interest of foreigners in Italy in most cases does not go beyond visiting ancient historical monuments or modern fashion boutiques. But there are also those who seriously and for a long time decide to move to live in a new place. In such situations, you need to imagine as accurately as possible what kind of work a visitor can count on and what salary awaits him in Italy at first.

Employment in Italy

The indigenous population of Italy never took credit for an excessive passion for labor duties - labor productivity here is one of the lowest in the European Union. The rather high level of unemployment also does not contribute to its increase. At the end of 2021, its indicator did not fall below 10%; in December, statistics recorded that 10.3% of the active population remained in search of a place.

It is noteworthy that the percentage of job seekers in the north of the country is only 7.7% versus almost 19% in the southern regions. The same geographical division is noticeable in terms of the leading sectors of the economy: the north is represented more by industrial enterprises, for applicants in the south, jobs in Italy will be found in agriculture.

The main sectors of the economy in Italy are:

• tourism: sightseeing, beach holidays, organization of services, trade and catering for visitors;
• industry: mainly the production of clothing, footwear, as well as the assembly of cars and motorcycles, household appliances;
• agro-industrial complex - crop production: grapes, cereals, corn, olives, tobacco, fruits and vegetables are grown;
• government sector.

Minimum wage in Italy

Unlike in Russia, Italian lawmakers do not welcome the statutory minimum wage cap. But in Italy, trade unions play a much more significant role, which really defend the interests of the working population.

Their efforts have concluded 53 national agreements with employers in most sectors of the economy. These agreements cover about 9.8 million workers, which is 75.8% of the number of employed citizens.

Since the minimum wage in Italy is not regulated by law, we can only talk about in which cases hired personnel receive the least for their work:

• territorial division - the lowest salaries in Calabria (slightly more than 23,800 euros / year), and slightly higher in Molise and Basilicata (no more than 24,760 euros / year);
• by profession - traditionally working specialties are paid lower than the rest (about 25,700 euros / year);
• by gender - women still earn less than men (just over 27,000 euros / year, the national average salaries for women are 20% lower);
• by sectors of the economy - the lowest place in the ranking is occupied by agriculture (around 23,000 euros / year).

Country averages

In recent years, the average wage in Italy has been growing, albeit at a slow pace. At the end of 2021, the average gross income approached the level of 29,309 euros per year, which, in percentage terms, amounted to 2.1% of the 2021 level. However, this does not fully reflect the state of affairs in each particular industry.

So, according to the statistical service of Italy (ISTAT, Istituto Nazionale di Statistica), the growth was:

• industrial and private commercial sector - 1.1%;
• public administration organizations - 3.6%.

If we consider the growth of income by profession, the following trends in the growth of hourly wages are observed in comparison with 2021:

• firefighters - 5.2%;
• law enforcement officers - 4.0%;
• military - 4.2%;
• telecommunications workers - 1.9%;
• employed in agriculture - 1.7%;
• in the trade sector - 1.6%.

The overall growth rate in the public sector was 2.6%.

A simple arithmetic operation cannot calculate what the average salary in Italy is in reality, because the amount of 29,309 euros includes both the meager incomes of handymen and the earnings of top managers that are multiples of them. In addition, in Italian large companies, it is customary to pay employees not only the thirteenth salary: the legislation allows up to 16 salaries to be paid in 12 months. The income of the majority of Italians is in the range of 1,300 - 1,500 euros.

Differences by industry

The importance and share of a particular industry in the formation of the country's GDP does not in any way affect what the wages in Italy will be for local or immigrants.

The most promising sector is the public sector, but for employment in this area you need to be a citizen of the country, have a diploma of education in Italy or an educational institution recognized in the EU, and know the language. Visitors do not have to count on the place of an official or a law enforcement officer.

Income by profession

The overall averages do not reflect the actual situation. The amount of monthly income depends on:

• the position held (a middle manager gets four times more than an ordinary employee, and a top manager's earnings can be 10 times higher);
• areas of employment and qualifications;
• the region where the employer is located (salaries in the north are 16.9% higher than in the south);
• the general price level in the cities of residence (the higher the costs, the higher salaries employers are forced to pay).

If we take the average values, then salaries in Italy by profession are distributed as follows:

• ambulance doctors and municipal clinics, pharmacists earn up to 2,000 euros;
• medical staff in a public hospital - 1,000 euros, and in private medical institutions - up to 3,000 euros;
• bank employees - from 2,000 to 4,000 euros per month;
• accountants receive up to 1,500 euros per month, and heads of accounting services - up to 4,000 euros;
• construction specialists - EUR 1,400 2,500;
• the salary of a programmer in Italy is up to 3,500 euros and depends on the qualifications of an IT specialist;
• in catering, income ranges from 800 euros for service personnel to 1,800 euros for chefs and managers of establishments;
• working specialties (plumber, electrician, welder) are also paid in different ways - up to 2,000 euros, subject to the performance of complex work;
• handymen, unskilled personnel (cleaners, orderlies, pickers, handymen and others) receive the least - up to 600 euros;
• the average salary of a teacher in Italy is about 2,000 euros and this is due to the fact that the education sector is understaffed with specialists.

Foreign students studying at Italian universities often apply for internship positions in large companies on a part-time basis. Such a part-time job brings up to 500 euros per month.

High incomes for such professionals as realtors, brokers and financial analysts, lawyers, photographers, image makers. However, more often than not, their earnings consist of an agency commission or a fee for a successfully completed order.

Salaries for individual specializations can vary dramatically even within the same profession. If we talk about how much a doctor gets in Italy, then you need to understand that plastic surgeons, dentists and gynecologists in private clinics can earn several hundred thousand a year.

Regional differences

If you look at the map of Italy, you will notice that its length from north to south is much greater than from west to east. That is why there are three striking differences in the structure of the economy and income of the region.

However, high salaries, for example, in Milan, do not mean that the level and comfort of living in Lombardy is automatically higher than in other provinces. In addition to the size of wages, it is important to take into account the cost of living in the region, and in the north it is the highest.

That is why the center is in the lead in the ranking of the most favorable cities in terms of the “monthly income – cost of living” link. But nevertheless, comfortable conditions are considered not in Rome, but, for example, in other cities of the Lazio region, followed by northern Florence and Venice.

Taxation of salaries

Italian taxation cannot be called sparing, and this applies equally to businesses and individuals. The rate of personal income tax (IRPEF, imposta sul reddito delle persone fisiche) in Italy is progressive and the maximum deduction can be 43% of the salary received. Unlike many European countries, taxes in Italy are levied without taking into account the non-taxable minimum.

It should be remembered that social benefits are not included in the taxable income base.

In addition to income tax, social contributions must be paid:

• 9.19–10.49% are deductions from employee income;
• The employer transfers 29–32% of its funds.

The distribution of insurance payments is carried out by:

• National Institute of Social Security (INPS - Istituto Nazionale per la Previdenza Sociale) - pension payments and in case of incapacity for work not related to industrial accidents;
• National Institute of Personal Accident Insurance (INAIL - Istituto Nazionale per l'Assicurazione contro Infortuni sul Lavoro).

In addition to national taxes, there are additional fees in the form of regional and municipal income taxes. The maximum size of each of them can reach 3.33 and 0.9%, respectively. The recipients of the funds are local budgets.

Analysis of the ratio of monthly income and cost of living in Italian cities

Upon closer examination, it can be understood that for the correct choice of the best place to live, one must take into account not only the size of the promised salary, but also the living expenses in each region.

Local Unemployment and Prospects for Migrants

In recent years, unemployment in Italy has been declining, but at such a slow pace that it is almost invisible to ordinary citizens (only 0.2% in 2021). This is especially true for young people who decided to go to work right after school, without wasting time on getting a diploma. While the overall unemployment rate in the country is slightly above 10%, the share of unemployed youth is almost 32%.

The saddest thing is that this trend continues to grow. It turns out that for the economically active population under the age of 25, there are two ways: unskilled labor for a small salary or going to work outside the country.

Attempts to turn the tide in 2021 were made by politicians. The 2021 budget introduced the concept of "unconditional civil income" for people who have lived in Italy for 10 years or more and earn less than 9,360 euros in 12 months. The amount of the surcharge will be calculated individually, but the maximum amount should be no more than 780 euros per month.

Another measure of indirect assistance in the employment of young people is that the parliamentarians who came to power decided to lower the retirement age. It is planned that from April 2021 the retirement date will depend on the accumulated seniority. To do this, they intend to use the rule "quota 100", which implies that the sum of the values ​​of age and experience must be at least 100 (for example, 62 years of age + 38 years of official employment).

In such conditions, migrants arriving in Italy without knowledge of the language and a confirmed diploma of education, the prospect will not seem too bright. The main areas of employment for them:

• housekeeping assistance - 600-800 euros per month, with accommodation in the house;
• harvesting - 800-1000 euros before tax;
• examination of the elderly or a child - 1000-1500 euros, depending on the region and the candidate's skills (level of language proficiency, medical skills, experience).

Employment in the tourism sector is also possible, but for this you need to know Italian and, preferably, English, be able to captivate the audience, and also have a baggage of knowledge in the field of history and art.

The same personal qualities will help you get a job as a sales assistant. In either case, the employee's individual income will not be affected by the general level of salaries in Italy, everything will depend on the initiative and the amount of sales realized.

Conclusion

A short-term tourist trip to Italy will not be able to reliably orient a potential migrant on all issues related to temporary relocation or with an eye on permanent residence. Unfortunately, the economic situation does not promise newcomers bright prospects in terms of salaries and quick employment. The main advice for those who intend to stay in Italy for some time: you need to worry about the paperwork for a legal stay in the country and learn the language at least at a basic level.