Italy Avg. Wage (2025)
$53,864
Constant 2025 USD, PPP
+1.2% vs. 2024
vs. OECD Average
-17%
Below OECD avg. of $64,809
Italy below OECD average
10-Year Real Change
-3.9%
2015 to 2025
From $56,043 in 2015
Real Wage Peak
$57,790
Constant 2025 USD, PPP
Reached in 2010, not recovered since

Data

Average Annual Salary in Italy (2025) — source data. OECD — Centre for Employment, Labour and Social Affairs.
Year Avg. Annual Wage (USD PPP) YoY Change
1990 54,995 n/a
1991 55,457 +0.8%
1992 55,403 -0.1%
1993 54,550 -1.5%
1994 53,843 -1.3%
1995 52,664 -2.2%
1996 53,133 +0.9%
1997 54,604 +2.8%
1998 54,825 +0.4%
1999 55,433 +1.1%
2000 55,459 0.0%
2001 55,829 +0.7%
2002 55,314 -0.9%
2003 55,025 -0.5%
2004 56,146 +2.0%
2005 56,742 +1.1%
2006 57,067 +0.6%
2007 56,982 -0.1%
2008 56,972 0.0%
2009 57,296 +0.6%
2010 57,790 +0.9%
2011 56,917 -1.5%
2012 55,107 -3.2%
2013 55,257 +0.3%
2014 55,531 +0.5%
2015 56,043 +0.9%
2016 56,266 +0.4%
2017 55,769 -0.9%
2018 55,440 -0.6%
2019 55,581 +0.3%
2020 52,901 -4.8%
2021 55,577 +5.1%
2022 53,955 -2.9%
2023 52,732 -2.3%
2024 53,243 +1.0%
2025 53,864 +1.2%

About this Dataset

In 2025, Italy's average annual salary stood at $53,864 in constant 2025 USD, adjusted for purchasing power parity. That is approximately 17% below the OECD-wide average of $64,809. Real wages in 2025 remain slightly below the 1990 figure of $54,995 — 35 years with essentially no sustained real gain. The figure covers mean gross wages for a full-time, full-year equivalent employee across the total economy, compiled by the OECD Centre for Employment, Labour and Social Affairs from national accounts and labour force surveys.

Italy's 2025 average wage of $53,864 is $10,945 below the OECD average of $64,809. Real wages over the past decade fell 3.9%, from $56,043 in 2015 to $53,864 in 2025. For labour cost modelling, total employer cost in Italy typically runs 30–40% above the gross wage once social security and INPS contributions are included.

The dataset covers Italy from 1990 to 2025 at annual frequency. Key methodological notes:

  • Unit: Constant 2025 US dollars, adjusted for purchasing power parity using OECD deflators
  • Definition: Mean gross annual wage of full-time, full-year equivalent employees, total economy
  • Coverage: 1990–2025, annual frequency, Italy (ISO-3: ITA)
  • Measure code: WG (average wage) with USD_PPP unit measure, series AV_AN_WAGE
  • Publisher: OECD Centre for Employment, Labour and Social Affairs (ELS.SAE)

Italy's wage stagnation is the defining feature of this series. From 1990 ($54,995) to 2025 ($53,864), real wages moved sideways — if anything, slightly down — for 35 years, a pattern found in few other OECD economies of comparable size. The series peaked in 2010 at $57,790, following a period of modest growth in the mid-2000s, then declined through the eurozone debt crisis years. By 2014, wages had fallen to $55,531, a 3.9% real contraction from peak. A partial recovery between 2015 and 2019 brought wages back to $55,581, but that high was already well below the 2010 ceiling.

Total factor productivity growth stalled after euro adoption in 1999, partly because competitive pressure from lower-cost producers squeezed the manufacturing SME sector that had anchored Italian wage growth in the 1970s and 1980s. Multi-year national collective bargaining agreements (CCNL) set wages sector-wide and are typically renegotiated every three years, leaving limited room for firm-level productivity gains to feed through to pay. A high share of employment in low-productivity services — accommodation, food, retail — also weighs on the aggregate mean.

The COVID-19 shock in 2020 was unusually severe for Italy. Average wages fell 4.8%, from $55,581 to $52,901, the largest annual decline in the 36-year record. Italy was among the first European economies hit by the pandemic, and its cassa integrazione (wage support) schemes (which prevented mass layoffs) coincided with collapsed hours across hospitality, manufacturing, and retail. The 2021 recovery (+5.1%, to $55,577) reflected both a genuine rebound in activity and base effects. The recovery proved short-lived: inflation accelerated sharply through 2022 and 2023 faster than Italy's slow-moving collective bargaining could respond. Average wages dropped 2.9% in 2022 (to $53,955) and a further 2.3% in 2023 (to $52,732) in real terms. Modest gains of +1.0% in 2024 (to $53,243) and +1.2% in 2025 (to $53,864) suggest nominal settlements are beginning to catch up with price levels, but only gradually.

Italy's structural wage gap relative to the OECD average has widened significantly since 1999. Firms benchmarking labour costs for Italian manufacturing or shared service operations should treat the OECD mean as an indicator of full-time equivalent cost rather than typical take-home pay across the workforce, since Italy's informal economy, irregular contracts, and a relatively high share of part-time work in certain sectors can make average wages a less precise guide to actual payroll planning than in some northern European peers.

Frequently Asked Questions

In 2025, the average annual salary in Italy was $53,864 in constant 2025 USD, adjusted for purchasing power parity. This figure covers mean gross wages for a full-time, full-year equivalent employee across the total economy, compiled by the OECD Centre for Employment, Labour and Social Affairs from national accounts and labour force surveys (series AV_AN_WAGE, measure WG, unit USD_PPP). The 2025 reading is up 1.2% from $53,243 in 2024.

Italy's 2025 average of $53,864 sits approximately 17% below the OECD-wide average of $64,809. Within the EU, Italy typically falls in the lower-middle tier — above Greece and most Central and Eastern European peers, but below Germany, the Netherlands, France, and Belgium. Italy also trails Spain, whose 2025 average of $57,779 is roughly $3,915 higher.

Between 2015 and 2025, Italy's average annual wage declined from $56,043 to $53,864, a real fall of roughly 3.9% over ten years. That contraction stands out among OECD peers and most likely reflects Italy's persistent productivity stagnation, a high share of informal and part-time work, and wage structures largely determined by multi-year national collective agreements (CCNL) that have struggled to keep pace with inflation, particularly after 2021.

Italy's average wage fell 4.8% in 2020, from $55,581 in 2019 to $52,901 — the sharpest single-year decline in the 36-year dataset. The drop reflects both genuine earnings losses and composition effects as hours worked collapsed. Wages partially recovered in 2021 (+5.1%, reaching $55,577), but high inflation then drove another real decline: -2.9% in 2022 (to $53,955) and -2.3% in 2023 (to $52,732), before modest gains of +1.0% in 2024 and +1.2% in 2025.

Italy's average wage in 2025 ($53,864) remains slightly below its 1990 level ($54,995) in real terms — a real decline of roughly 2% over 35 years and one of the most striking stagnation stories in the OECD. The most commonly cited explanations are weak total factor productivity growth since the mid-1990s, a business structure dominated by small and medium-sized firms with limited capacity for productivity-linked pay, rigid multi-year collective bargaining that sets wages independently of firm-level performance, and a sectoral mix weighted toward lower-productivity services. Italy's wage gap relative to northern European peers has widened continuously since euro adoption in 1999.