Italy's INPS reports record employment but stagnant real wages

The INPS annual report shows the number of insured workers rising to 27.2 million, the highest level in recent years, indicating a strong recovery of stable jobs after the pandemic. Despite the increase in insured persons and weeks worked, real wages have not kept pace with inflation, leaving workers’ purchasing power lower, especially in commerce, services and the tertiary sector.

INPS Director‑General Valeria Vittimberga said the system’s sustainability depends on the labour market and that she sees no need to raise the statutory pension age further, preferring to keep the framework stable and allowing voluntary extensions. She highlighted growth in employment among under‑35s, the importance of collective bargaining, smart‑working to improve work‑family balance, and fiscal measures such as the “bonus mamma” and the universal allowance that aid families without reducing female labour participation.

Union analysts called for stronger collective contracts, a reduction of tax and contribution wedges and a “salary of dignity” law proposing a €9‑per‑hour floor in high‑intensity public contracts to improve wage growth and protect workers.