Italy Enacts Decree 62/2026 With 100% Hiring Relief and New Fair-Wage Rules
Updated
Updated · The National Law Review · Jun 17
Italy Enacts Decree 62/2026 With 100% Hiring Relief and New Fair-Wage Rules
1 articles · Updated · The National Law Review · Jun 17
Summary
Decree-Law No.62/2026 ties Italy’s new “fair wage” standard to the pay terms in the most representative national collective agreements, blocking lower-pay minority contracts and setting fallback benchmarks where no sector deal exists.
12 months after an agreement expires, wages will automatically rise by 30% of the IPCA inflation index until renewal, while employers must add each applicable collective agreement’s code to contracts and payslips for compliance checks.
100% employer social-security relief for up to 24 months will apply under four hiring schemes for women, youth, Southern Italy’s SEZ and fixed-term conversions, with monthly caps of €500 to €800 and access conditioned on meeting the fair-wage standard.
From 1 July 2026, digital platforms face tighter worker protections: algorithmic control can trigger a presumption of subordinate employment, workers can seek human review of automated decisions, and delivery riders must have individual work ledgers and training.
Within 30 days of the decree’s conversion, Italy plans a collective-agreement archive, while CNEL, INPS, ISTAT, INAPP and labor inspectors will share wage data and produce at least annual reports to Parliament.
Will Italy's new fair wage law crush the small businesses it relies on?
Amidst stagnant growth, can Italy's ambitious labor reform succeed or will it backfire?
Can regulators truly hold platform algorithms accountable for new worker rights?
Decree-Law No. 62/2026: Italy’s Major Labour Reform—Fair Pay, Hiring Incentives, and Digital Platform Worker Rights
Overview
Effective May 1, 2026, Italy introduced Decree-Law No. 62/2026, marking a major reform and paradigm shift in its approach to employment relations. This comprehensive overhaul addresses persistent challenges in the Italian labour market by fostering employment growth and ensuring equitable working conditions across sectors. The reform is built on three core pillars: establishing a fair wage framework, introducing 100% hiring relief to incentivize job creation, and strengthening protections for digital platform workers. Together, these measures aim to modernize labour laws, promote fairness, and create a more dynamic and balanced employment landscape in Italy.