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Italy Approves May Day Jobs Decree Linking Incentives to ‘Fair Wage’ Rules

The plan leans on collective agreements by tying tax breaks to nationally bargained pay with stricter checks on the contracts employers apply.

Overview

  • The cabinet approved the decree Tuesday, with the government saying it unlocks nearly €1 billion and could affect about four million workers.
  • Employers can claim hiring incentives only if they pay a “fair wage” equal to the total compensation in the leading national contract for the sector, with SIISL job posts carrying a unique contract code to verify compliance and flag contract dumping.
  • The package extends zero employer social contributions for permanent hires of under‑35s up to €500 a month for 24 months, and for eligible women up to €650 a month nationwide or €800 in the southern special economic zone (ZES).
  • For contracts that lapse without a renewal for 12 months, wages receive an interim increase tied to inflation measured by IPCA at 30% to push faster bargaining and protect pay.
  • The decree adds platform‑work safeguards that require verified digital ID to access apps, limit each worker to one account per tax code, penalize credential transfers, and presume employment when strong algorithmic control is found.