Il Work Decree passes the final parliamentary stage and becomes lawThe Senate approved the vote of confidence requested by the government on the text already approved by the Chamber with 94 votes in favor, 61 against and two abstentions. The measure, passed by the Meloni government on the occasion of May Day, puts in place a package worth almost one billion euros and addresses some of the most sensitive issues in the labor market: wages, incentives for stable employment, contract renewals, digital platforms, and work-life balance.
The majority claims the decree as a concrete response to the wage issue and the need to support new hiring. The opposition and unions, however, contest the intervention, which they consider insufficient on the wage front and far from the legal minimum wage. At the heart of the measure is the “fair wage” principle, built around the national collective agreements signed by the most representative trade unions and employers' organizations.
The "fair wage" is included in the decree
The most politically relevant innovation is the definition of "fair wage" as a condition for accessing hiring incentives. The parameter identified is Overall economic treatment, the Tec, provided for by the most representative national collective agreements. The Tec scope includes all fixed and ongoing salary items, direct, indirect, and deferred. This includes additional monthly payments, fixed and ongoing allowances, contractual welfare benefits due to all employees, and other benefits or allowances with a financial value defined by collective bargaining agreements. However, discretionary and variable components awarded to individual workers are excluded.
The government's choice aims to strengthen the role of national collective bargaining, contrasting the "fair wage" with the legal minimum wage advocated by the opposition. For Palazzo Chigi, the key is not to establish a single legal hourly threshold, but to anchor wages to the wages provided for in the most representative contracts. "We are keeping our commitments to Italians: to protect those who work, to promote new jobs, and to reward companies that invest in quality work," commented Prime Minister Giorgia Meloni.
Bonus for young people, women and Zes
At the heart of the decree is the package of incentives for permanent hiring. For during 35 The bonus provided by the Cohesion Decree, already extended by the Milleproroghe Law until April 30, has been extended until December 31, 2026. The benefit consists of a total contribution relief for 24 months, up to €500 per month, for the permanent hiring of young people without prior permanent employment and classified as disadvantaged workers. In the Single Economic Zone (ZES), the ceiling increases to €650 per month.
The decree also encourages the transformation of contracts Fixed-term contracts in permanent employment. For fixed-term contracts lasting no more than 12 months, entered into by April 30, 2026, and transformed seamlessly between August 1, 2026, and December 31, 2026, a 100% contribution exemption is provided for 24 months, up to €500 per month for each worker under 35 who has never been employed on a permanent basis.
Chapter also relevant for the unemployed or unoccupied womenThe contribution relief can reach up to €650 per month for 24 months, rising to €800 if the permanently employed worker resides in the Single Economic Zone (ZES). In some cases, related to disadvantaged worker categories, the incentive lasts 12 months. To qualify for the bonuses, the hiring must result in a net increase in employment and the company must not have laid off employees in the previous six months. In the Single Economic Zone (ZES), an exemption of up to €650 for 24 months is also provided for hiring, by December, workers aged at least 35 who have been unemployed for at least 24 months, but the relief is only available to employers with up to 10 employees.
Contracts, social security and conciliation
The decree also intervenes on renewals of collective agreementsIf a contract is not renewed within the first nine months of its natural expiration, and in the absence of different contractual agreements, wages will be adjusted as a lump sum advance equal to 50% of the change in the HICP-NEI, the Harmonized Index of Consumer Prices net of imported energy products. For sectors with high seasonality and revenue variability, such as tourism, and for healthcare and social care sectors operating under and on behalf of the National Health Service, the amount will be defined by collective bargaining and cannot exceed 50%.
Le New rules apply to expiring national collective agreements after the decree comes into force. For those already expired, application will begin on January 1, 2027. The goal is to reduce contract waiting times and ensure financial coverage during the contractual period.
On the supplementary pension front the liquidable capital portion changes again upon retirement. After the increase to 60% provided for by the Budget Law, the rate returns to 50% of the total amount. Furthermore, the instalment disbursement of capital, i.e., the option to receive it in multiple installments over a period of at least five years, has been postponed to October 31st. The decree also modifies the governance of occupational and pre-existing pension funds: from the next renewal, the administrative and supervisory bodies will remain in office for five financial years, and their appointments cannot be renewed for more than two consecutive terms.
Then there is the chapter work-life balanceEmployers with specific certifications on measures to support work-life balance, maternity, and paternity leave are eligible for a contribution relief of up to 1%, up to a maximum of €50 per company per year. Following the parliamentary process, the measure has been limited to the three-year period 2026-2028.
More protections for riders and a crackdown on accounts
The decree strengthens the safeguards for digital platform workers, with particular attention to RIDERThe rule aims to hit the digital gangmaster system and to make the functioning of algorithms that impact work organization more transparent. When evidence emerges that indicates the existence of management and control powers, including through automated monitoring or decision-making systems, the employment relationship is presumed to be subordinate, unless proven otherwise. The employee may request a comprehensible explanation and a human review of automated decisions that limit, suspend, or close their account, deny remuneration for work performed, or modify their contractual status. To combat digital gangmasteringAccess to the platforms can be done through SPID, an electronic identity card, a national services card, or an account linked to a single tax code and protected by multi-factor authentication.
Transfer of the account or use by a person other than the owner will result in a administrative sanction From 800 to 1.200 euros. Platforms will not be able to issue more than one account per tax code nor commission temporally incompatible services from the same worker. Violations will result in a fine of 1.000 to 1.500 euros.
News for the leasing staff tooA worker hired on a permanent basis by an employment agency may be sent on a fixed-term assignment to the same user, for tasks at the same level and in the same category, for a total period of 36 months, even if non-continuous and in addition to the 24 months, unless otherwise specified in the user's collective bargaining agreement.
On a trial basis until December 31, 2029, workers receiving social safety nets will be permitted, subject to union agreement, to second them between companies in different sectors, with the aim of safeguarding employment levels or production continuity. A maximum total limit of 12 months is set for extracurricular internships within companies belonging to the same group.
