Italy compensation index hits 35/100 amid transparency concerns

The Coverflex Compensation Index, based on a survey of 1,000 employees, reports a low score of 35 out of 100 regarding the health of the salary relationship between Italian companies and workers. The index evaluates four key dimensions: adequacy, clarity, equity, and perceived value. Adequacy was identified as the most critical weakness, with a score of 29/100, as employees feel compensation is not aligned with their roles, market standards, or the cost of living.

Regarding transparency, while 83% of workers favor salary transparency, only 21% claim to understand it well. Furthermore, 69% of respondents believe Italian companies lack sufficient transparency regarding compensation. The gender pay gap remains a significant issue, with only 13% of workers stating that pay differences between men and women are openly communicated.

Employee well-being is also under pressure, with 34% of respondents reporting feeling mentally exhausted often or very often in the last year—a figure that rises to 43% among those aged 18-34. To address these issues, 63% of workers expressed openness to receiving increases or bonuses in the form of corporate welfare benefits. Specifically, 48% would prefer a combination of 90% gross annual salary and 10% tax-free welfare over a 100% fully taxed salary.