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Young Italian workers are among worst paid in Europe

Italians starting their professional careers earn much less than their peers in other western European countries.

Young Italian workers are among worst paid in Europe
Italy: no country for entry-level workers. Photo: Kailash Gyawali/Flickr

At least that's according to a report by the UK-based business adviser, Willis Towers Watson.

The 2016 Global 50 Remuneration Planning Report ranked the average salaries paid for full-time, entry-level jobs – those usually aimed at recent graduates or people who have recently finished specific training courses.

Among the 15 western European nations ranked, Italy came last – paying an average gross salary of €27,400 a year.

The figure marks a stark contrast with Switzerland, which ranked in first place, paying an average pre-tax salary of a whopping €83,600.

Italy's closest counterparts were Spain, where entry-level workers can expect to take home €30,700, and France, where average earnings were slightly better at €33,400.

After the Swiss, the Danes were the next most handsomely paid – taking home an average of €51,400 a year. Germany and Norway came fourth and fifth, respectively, with average salaries of €45,800 and €45,800 a year.

Italy's inability to pay its young workers competitive wages is one of the key factors driving the 'brain-drain'.

Every year thousands of skilled Italians leave the country, enticed by the higher wages and better opportunities on offer abroad.

But it's not all doom and gloom. Those who stay – and manage to find a job – see their earnings increase considerably as their career progresses, according to the report.

In terms of net salaries paid to workers in middle-management positions, Italy was ranked a more respectable 11th place out of the 15 countries – with average gross salaries of €70,900 per year.

That's higher than wages paid for similar roles in northern European powerhouses Sweden (€68,300) and Finland (€64,100).
 

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EXPLAINED: How to claim Italy’s €200 cost of living bonus

The Italian government is sending one-off €200 payments to cushion the rising cost of living, but they won't be automatic. Here's the latest on how the process works.

EXPLAINED: How to claim Italy's €200 cost of living bonus

The €200 cost of living bonus was announced in May 2022, alongside several government measures aimed at offsetting the increasing cost of living, as The Local reported.

Employees, as well as the self-employed, pensioners and the unemployed, will be eligible to receive the €200 payment if they have an annual income of under €35,000 gross, according to a decree law passed in May.

READ ALSO: Who can claim Italy’s €200 cost of living bonus?

However, the bonus is only automatically made to those who are state employees or pensioners. Those in these categories will be identified by the Ministry of Economy and Finance and INPS and receive €200 along with their salaries or pension payments.

What if I work in the private sector?

Employers working in the private sector should receive their payments in their July pay packet. First, however, they need to submit a self-declaration (autodichiarazione) form to their employer, who will pay the sum with the July pay check and then recover the funds from the state later.

The decree doesn’t specify a deadline for the submission, but as the payments should be made in July, the paperwork needs to be filed before that – so you’ll need to talk to your employer and arrange it.

READ ALSO: EXPLAINED: The rules and deadlines for filing Italian taxes in 2022

The self-declaration serves to establish that the worker has all the requirements to be a beneficiary. That means the person does not go over the income ceiling for the benefit, for example.

You will also have to declare that you will not receive a €200 bonus from other sources, such as from being a recipient of the citizen income or through another employment relationship.

How can other workers apply?

Italy’s government expanded the bonus payment scheme to more people in early May, as The Local reported.

Seasonal workers, domestic and cleaning staff, the self-employed, the unemployed and those on Italy’s ‘citizens’ income’ were added to the categories of people in Italy eligible for a one-off €200 payment.

These other categories of workers will not receive automatic payment, though. Instead, they need to make a special request to INPS to receive the bonus.

There are different deadlines for different people, so ‘domestic workers’ (lavoratori domestici) need to apply by September 30th. Other workers, such as seasonal, for example, have until October 21st.

You can apply for the bonus on the INPS website, which indicates that the payments will be made at an unspecified later date.

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