Italy, officially known as the Italian Republic, is a country located in southern Europe. As of January 1, 2022, it has a population of just over 59 million people, making it the third largest country in the European Union by number of inhabitants (after Germany and France). It has been a member of the European Union and NATO since their inception and is the third largest economy in the euro area. It borders France to the northwest, Switzerland and Austria to the north, Slovenia to the northeast. Inside the territory of Italy there are two enclave states: the state of San Marino and the state of Vatican City, associated with Italy, located inside the territory of Rome, with each of which Italy has an internal border. The country attracts a lot of tourists because of its rich and ancient history and it is not surprising that many foreigners want to stay here forever. Unemployment in Italy, according to official data, is 7.8%. Average incomes in the country are 12th among the countries in the European Union and 28th in the world. There are very large differences in pay in the country, ranging from 1,000 to 5,000 euros per month. We will look in detail at the minimum and average wages, pay by professions and regions, taxes on wages and living expenses.
Minimum wage
All countries that are members of the European Union do not coordinate the remuneration that enterprises set. In Italy, there is no concept of a “minimum wage” and everything is regulated by the Trade Unions, which determine the amount of the minimum wage and draw up collective agreements between employers and employees. The country’s constitution states that the salary should not be lower than the level of subsistence that would allow a person to lead a dignified lifestyle. According to statistics, the minimum wage for 2023 is 1,176 euros.
Average salary
In terms of average wages, Italy is ahead of many EU countries, such as Spain and Cyprus, but inferior to more successful countries such as Germany and France. The annual income of an Italian worker is about 29,000 euros, that is, the average salary in Italy in 2023 is 2,415 euros per month before the tax, the rate of which varies nationwide from 23% to 43%. In fact, it is quite difficult to derive average wages in Italy, and in this respect the country is very diverse. It is necessary to take into account the profession, the sector of the economy, education, the level of skills, gender, the age of the employee and the specific region. For example, according to the local statistical office, in the south of Italy the average income is about 1,700 euros per month (net), and in the north more than 2,200 euros.
The annual salary in Sicily is about 21,000 euros, and in Lombardy about 32,000. In major Italian cities, where the industrial sector, the tourism sector and the financial services market are developed, wages are significantly higher than in the country as a whole. For example, in the case of employment in Milan for positions requiring high qualifications, you can count on a net income of more than 2,500 euros per month. The situation is favorable in Rome and Turin. In addition to the regional factor, the average salary of Italian workers largely depends on the occupation. The gap here is huge. If senior managers and company executives receive up to 8,500 euros per month, then ordinary workers receive from 1,500 to 2,000 euros. The salaries of the members of the government exceed 14,000 euros. Women in Italy earn 10-11% less than men.
Salaries by occupation
The average salary in Italy is directly related to a person’s profession. The highest salaries are offered to doctors, pharmaceutists, bank employees, financiers, programmers and engineers. Average salaries are received by managers, nurses, teachers, builders, etc. Minimum pay is paid to employees in the field of services, agriculture and carers. The latter have the opportunity to save on free accommodation.
Here are some of the professions and pay in euros per month:
§ Chief Financial Officer – 4 400
§ Engineer – 2 530
§ Lawyer – 2 460
§ Doctor – 2 400
§ Programmer – 2 200
§ Electrician – 2 030
§ Accountant – 2 000
§ Dentist – 1 950
§ Nurse – 1 890
§ Cook – 1 850
§ Builder – 1 400
§ Babysitter – 1 200
§ Teacher – 1 100
§ Seller – 1 060
§ Waiter – 1 000
Payroll taxes
Italy’s tax system is considered one of the most complex in Europe. For example, income tax is levied at three levels: national, regional and municipal, with liability calculated at a progressive rate. Taxes on salaries in Italy are withheld by both residents and non-residents. The difference lies in the fact that foreign workers who live in the country no more than 183 days a year pay taxes exclusively on income earned on Italian territory.
Income tax in Italy in 2023
Annual income (EUR) / Tax rate (%)
Up to 15 000 23
From 15 001 to 28 000 27
From 28 001 to 55 000 38
From 55 001 to 75 000 41
More than 75 001 43
Regional and municipal income tax rates in Italy depend on the city of residence and range from 0.7% to 3.33% and 0% to 0.9% respectively.
Cost of living in Italy
The cost of living in Italy depends on many factors, such as salary and purchasing power, even the city where you live, finally, your goals. Roughly speaking, given what the country offers to its inhabitants, the cost of living in Italy is not high. It is possible to save and live well. In summary, the average cost of living in Italy per person are:
§ Rent (1 bedroom apartment) – 600€
§ food – 150€
§ utility bills – 150 € (or 190 € in winter)
§ Transport – 35€
§ Health – 250 € / year (private health plan)
§ Recreation – 130€