What Is The Average Salary In Italy?
What is a good salary in Italy? This is a common question for many people who are considering moving to this beautiful and culturally rich country. Italy is known for its art, cuisine, fashion, and history, but how does it compare to other European countries in terms of income and living standards?
The average salary in Italy is around €2,475 per month or €29,700 per year. However, this figure can vary significantly depending on several factors, such as the region, the sector, the experience, and the qualifications of the worker. For example, the average salary in Italy per month is higher in the north than in the south. Also, average salaries are higher for the public sector employees than in the private sector. Moreover, there is a noticeable pay gap between men and women, as well as between natives and migrants.
As an expat who has lived and worked in Italy for years, I can tell you that the average salary in Italy may not be enough to enjoy a comfortable lifestyle, especially in big cities like Rome or Milan, where the cost of living is high. However, working in Italy has many benefits, such as the social security system, health care system, generous vacation days, and the opportunity to learn a new language and culture. Therefore, the answer to the question of what is a good salary in Italy depends on your personal and professional goals, as well as your expectations and preferences.
In this blog post, we will share more details about the average salary in Italy, the minimum wage, the pay gap, and the differences between the public and private sectors. By the end of this post, you will better understand what to expect about the average gross salary in this country.
If you are American, read this article about living in Italy before you accept the job offer.
The Average Gross Salary in Italy
The average gross salary in Italy in 2024 is estimated to be around €2,475 per month or €29,700 per year. This is slightly lower than the average wage of €31,500 reported in 2022. However, the average salary in Italy varies significantly depending on several factors, such as region, job type, and gender.
Here’s a look at the average annual salaries of professionals in specific fields:
To know more, here’s an article about the jobs that are in-demand in Italy
Regional differences
The average salaries in Italy are higher in the northern and central regions than in the south. According to a survey conducted in 2022, the highest average annual gross salary was recorded in Lombardy (€32,500), followed by Lazio (€31,600) and Trentino-South Tyrol (€31,300). On the other hand, the lowest average annual gross salary was found in Basilicata (€25,500), followed by Calabria (€25,800) and Sicily (€26,000). These regional disparities reflect the economic gap between the north and the south of Italy, which has historical and structural roots.
Related topic: Living in Italy as an American: What To Expect?
Job type differences
The average wages in Italy also differ depending on the sector and the level of education. Generally, the highest paid sectors are banking and financial services, insurance, and information and communication technology. The lowest paid sectors are accommodation and food services, agriculture, and arts and entertainment. Moreover, the average salary in Italy increases with the level of education. Employees with a university degree earn more than those with a high school diploma or lower. Additionally, high skilled employees, such as managers, professionals, and technicians, earn more than low skilled employees. Don’t expect much salary if you’re working clerical workers, service workers, and craft workers.
Gender differences
The average Italian salary also shows significant gender pay gaps. Women earn less than men for the same position and qualifications. The gender pay gap in Italy was 16% in 2023, women earned 84 cents for every euro earned by men. This gap was higher than the European Union average of 14.1%. The gender pay gap in Italy varies across sectors, age groups, and regions.
For instance, the gap was higher in the banking and financial services sector. It’s (19.8%), among workers aged 55-64 (22.4%), and in the north-eastern regions (18.9%).
The national average and gender pay gap in Italy is influenced by several factors, such as the following:
- Lower labor force participation rate of women,
- The higher share of women in part-time and low-paid jobs,
- The lower representation of women in managerial and leadership positions,
- The social and cultural norms that assign women more domestic and care responsibilities.
Minimum Wage in Italy
The minimum salary in Italy in 2024 is not determined by a national law, but by collective bargaining agreements between employers and trade unions. These agreements set the minimum wage for different sectors and regions, taking into account the cost of living, the productivity, and the job market conditions. The minimum wage in Italy is usually expressed as an hourly rate, and it includes social security contributions paid by the employer.
According to the national institute of statistics (ISTAT), the average minimum wage in Italy in 2023 was €9.48 per hour. It’s about €1,520 per month for a full-time worker. This was equivalent to 51% of the average salary in Italy per month, which was around €2,475. However, the minimum wage in Italy varied significantly across sectors and regions. For instance, the minimum wage was higher in the industrial sector (€10.14 per hour) than in the service sector (€8.91 per hour). Moreover, the minimum wage was lower in the southern regions (€8.77 per hour) than in the northern regions (€9.92 per hour).
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Factors Influencing Average Italian Income
The average Italian income in 2024 is influenced by several factors, such as education, experience, sector, region, gender, and work-life balance. These factors affect the gross salary, the net income, and the purchasing power of Italian workers.
Education
Education is one of the main determinants of the average Italian salary. It reflects the level of skills and qualifications of the workers. According to a report by the OECD, the average annual earnings of workers with a tertiary education in Italy were 68% higher than those of workers with an upper secondary education in 2019. This gap was higher than the OECD average of 54%. Moreover, the employment rate of workers with a tertiary education in Italy was 76%, compared to 59% for those with an upper secondary education and 44% for those with a lower secondary education or less. Therefore, education increases both the income and the employability of Italian workers.
Experience
Experience is another factor that influences the average Italian income, as it reflects the seniority and the performance of the workers. Generally, the average salary in Italy increases with the years of work experience, as workers gain more skills, knowledge, and recognition in their fields. However, the rate of increase may vary depending on the sector and the occupation. For instance, according to a survey conducted in 2020, the average annual gross salary of a software engineer in Italy increased by 32% after five years of experience, but only by 9% after ten years of experience. This suggests that the returns to experience may diminish over time in some sectors.
Sector
Sector is another factor that affects the average Italian income, as it reflects the demand and the supply of labor in different industries. As mentioned earlier, the highest paid sectors in Italy are banking and financial services, insurance, and information and communication technology, while the lowest paid sectors are accommodation and food services, agriculture, and arts and entertainment. These differences are related to the level of productivity, innovation, and competitiveness of each sector, as well as the availability and the quality of the workforce.
Region
Region is another factor that influences the average income in Italy, as it reflects the economic and social disparities among different areas of the country. As mentioned earlier, the average salaries in Italy are higher in the northern and central regions than in the south. These regional differences are due to the historical and structural factors that have shaped the development of each region, such as the following:
- Industrialization
- The infrastructure
- The public services
- The education
Moreover, the cost of living also varies across regions, affecting the purchasing power of the workers. For instance, the consumer price index (excluding rent) in Milan was 23% higher than in Naples in 2021.
Also read: Easiest Countries To Buy a House in Europe in 2023
Work-life balance
Work-life balance is another factor that influences the average Italian income, as it reflects the trade-off between the time and the energy that workers devote to their work and to their personal life. The work-life balance affects both the income and the well-being of the workers, as it impacts their productivity, motivation, satisfaction, and health.
According to the OECD, Italy ranked 18th out of 38 countries in terms of work-life balance in 2020. The average number of hours worked per year in Italy was 1,604, lower than the OECD average of 1,714. However, the share of employees working very long hours (more than 50 hours per week) was 4.1%, higher than the OECD average of 3.9%. Moreover, the quality of the working environment, such as the job security, the autonomy, the social support, and the learning opportunities, also affected the work-life balance of the Italian workers.
Are you a pregnant woman planning to move to Italy? Check our Maternity Leave in Italy: English Guide
Is The Average Wage in Italy Enough for The Cost of Living?
Italy is a popular destination for tourists, expats, and retirees who are attracted by its rich culture, history, and cuisine. But how does the average Italian salary compare to the cost of living in the country? Is it enough to enjoy a comfortable and satisfying lifestyle?
The average salary in Italy is lower than the average of €38,900 per year for the European countries.
Cost of Living in Italy
The cost of living in Italy varies depending on the location, lifestyle, and personal preferences. A family of four would need about €3,245 per month (excluding rent) to cover their basic expenses, while a single person would need about €929 per month (excluding rent). These costs include food, transportation, utilities, health care, education, clothing, and entertainment.
However, these are only national averages, and the actual costs may vary drastically depending on the city and region. For example, the cost of living in Rome, the capital and largest city, is about 24% higher than the national average. On the other hand, the cost of living in Palermo, the capital of Sicily and one of the southern regions, is about 19% lower than the national average.
Rent in Italy
Rent is also a significant factor that affects the cost of living in Italy. According to Numbeo, the average rent for a one-bedroom apartment in the city center is €722 per month, while the average rent for a three-bedroom apartment in the city center is €1,346 per month. However, these prices can also vary drastically depending on the location. For instance, the average rent for a one-bedroom apartment in the city center of Milan, the financial and industrial hub of Italy, is €1,224 per month, while the average rent for a one-bedroom apartment in the city center of Bari, a port city in the south, is €450 per month.
Therefore, based on these data, it can be concluded that the average wage in Italy is not enough for the cost of living in the most expensive cities and regions, such as Rome, Milan, and the northern areas. However, it may be enough to cover the cost of living in the cheaper cities and regions, such as Palermo, Bari, and the southern areas. Of course, this also depends on the individual’s lifestyle, preferences, and spending habits.
Read about house prices in Italy in the dedicated article.
Final Thoughts About The Average Salary in Italy
In summary, the average salary in Italy is around €2,475 per month, with variations based on factors like region, job type, and gender. Regional disparities highlight economic gaps between the north and south. The minimum wage is determined through collective bargaining agreements, with the average in 2023 being €9.48 per hour. Various factors, including education, experience, sector, region, gender, and work-life balance, influence average incomes. While the average wage may not cover living costs in expensive cities, it may be sufficient in more affordable regions. Consider these factors when planning your move to Italy.
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