Meloni's labour decree: fair wage and end to pirate contracts

Context

In brief

• Green light for the fair wage labor decree
• Incentives for hiring and stop to pirate contracts
• Meloni: pact with businesses and unions

Key facts

• What: Fair wage labor decree and incentives
• When: April 29, 2026
• Where: Italy
• Who: Italian government, businesses, unions
• Amount: Not yet specified

The labor decree has received the green light from the council of ministers. Prime Minister Giorgia Meloni announced the measure at a press conference, along with Undersecretary Alfredo Mantovano and the ministers of Labor, Marina Calderone, and Equal Opportunities, Eugenia Roccella. The decree introduces the so-called 'fair wage,' defined as the overall economic treatment established by national collective contracts signed by the most representative employers' and workers' organizations at the national level. This measure aims to counter pirate contracts and guarantee fair economic treatment for workers. The prime minister emphasized the importance of an alliance with intermediary bodies, trade unions, and employers' associations, ensuring that the government is open to collecting improvement proposals. Minister Calderone reiterated the government's choice to support high-quality national collective bargaining.

Main novelties

The decree introduces several novelties, including the fair wage and changes to the rule on contractual renewals. The fair wage is defined as the overall economic treatment determined by the most representative national collective contracts. This measure excludes those who sign pirate contracts or underpay workers from accessing benefits. Furthermore, the rule on contractual renewals has been modified to give greater flexibility to the signatory parties in regulating wage increases and any one-time amounts.

The labor decree represents a starting point for an alliance between the government, businesses, and unions, with the aim of guaranteeing a fairer and more sustainable labor market. The measures introduced aim to counter digital exploitation and encourage hiring, offering fair economic treatment to workers.

Concrete examples and real numbers

In Ticino, for example, the average salary for a worker in the tertiary sector is approximately 6,500 CHF per month. With the introduction of the fair wage, companies operating in Italy and employing cross-border workers from Ticino will have to comply with Italian national collective contracts, which provide a minimum economic treatment of 1,500 euros per month for a full-time worker. This means that a cross-border worker from Ticino who moves to Italy to work will have to receive at least 1,500 euros, regardless of their previous salary in Switzerland.

Regulations and dates

The labor decree will come into force on January 1, 2027. Companies will have until June 30, 2027, to comply with the new regulations. Penalties for those who do not respect the fair wage will range from 5,000 to 50,000 euros, depending on the severity of the infringement.

Operational checklist

1. Contract verification: Check that existing contracts comply with the most representative national collective contracts. 2. Wage adjustment: Adjust workers' wages based on the new regulations. 3. Training: Train human resources managers on the new regulations. 4. Monitoring: Continuously monitor compliance with the new regulations.

Comparisons between practical scenarios

Before the introduction of the decree, an Italian company hiring cross-border workers from Ticino could offer salaries lower than those provided by national collective contracts. With the new decree, these companies will have to comply with the new standards, guaranteeing fair economic treatment to workers. This could lead to an increase in labor costs for companies, but also to greater stability and satisfaction for workers.

"The labor decree represents an important step towards a fairer and more sustainable labor market," declared Prime Minister Giorgia Meloni.

The labor decree represents a starting point for an alliance between the government, businesses, and unions, with the aim of guaranteeing a fairer and more sustainable labor market. The measures introduced aim to counter digital exploitation and encourage hiring, offering fair economic treatment to workers.

Operational details

Implications for cross-border workers

The labor decree introduces several measures that can have a significant impact on cross-border workers who work in Italy and reside in Switzerland. In particular, the introduction of the fair salary can ensure more equitable economic treatment for workers, including cross-border commuters. This provision, which came into effect on January 1, 2024, aims to combat pirate contracts and ensure that workers receive adequate economic treatment based on the most representative national collective contracts.

Comparison with the previous situation

Before the introduction of the labor decree, cross-border workers could be subject to pirate contracts that did not guarantee adequate economic treatment. For example, a cross-border worker residing in Lugano who worked in Italy with a pirate contract could receive a salary 20-30% lower than an Italian colleague with a regular contract. With the new provision, workers will be entitled to a fair salary and incentives for hiring. This can have a positive impact on the quality of life of cross-border workers and their ability to plan for the future.

Concrete scenarios

Suppose a cross-border worker who works in Italy and resides in Switzerland has a pirate contract. With the introduction of the labor decree, this worker will be entitled to a fair salary based on the most representative national collective contracts. For example, a construction worker residing in Mendrisio who worked in Italy with a pirate contract of 1,200 euros per month could now see their salary increase to 1,500-1,600 euros, in line with the collective contracts of the sector. Furthermore, the employer who signs pirate contracts will not be entitled to public work incentives, such as contributions for professional training or tax benefits.

📊 Practical example:

• Before the decree: Monthly salary of 1,200 euros for a cross-border construction worker.
• After the decree: Monthly salary of 1,500-1,600 euros, in line with collective contracts.

Procedure for cross-border workers

Cross-border workers who wish to benefit from the new measures introduced by the labor decree must ensure that they have a contract in line with the most representative national collective contracts. Here is an operational checklist:

1. Contract verification: Check that the employment contract is in line with national collective contracts. 2. Consultation: In case of doubt, consult a labor expert or a union to obtain detailed information and assistance. 3. Documentation: Keep all documentation relating to the contract and communications with the employer. 4. Reporting: In case of irregularities, report the situation to the competent authorities or unions.

💡 Practical advice:

"If your contract is not in line with the collective contracts, immediately contact a union or a labor expert for assistance."

Comparison of practical scenarios

Scenario 1: Compliant contract

• A cross-border worker residing in Chiasso who works in Italy with a contract in line with the collective contracts receives a monthly salary of 1,800 euros.
• Benefits from all public work incentives, such as contributions for professional training.

Scenario 2: Non-compliant contract

• A cross-border worker residing in Bellinzona who works in Italy with a pirate contract receives a monthly salary of 1,300 euros.
• Does not benefit from public work incentives and risks sanctions.

⚠️ Warning: Employers who continue to use pirate contracts may be subject to administrative and criminal sanctions, with fines that can reach up to 10,000 euros.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Concrete actions for cross-border workers

To benefit from the new measures introduced by the labor decree of January 1, 2024, cross-border workers must follow some concrete procedures. First, it is important to verify that their employment contract complies with the most representative national collective labor agreements, such as the CCNL for employees of professional firms or that for commerce workers. If not, it is advisable to contact the employer to request an adjustment of the contract.

Steps to follow

1. Check your employment contract

• Ensure that the salary complies with the contractual minimums. For example, a construction worker in Lugano should earn at least CHF 3,900 per month for full-time work.
• Make sure that the annual leave is at least 20 working days, as provided for by the construction CCNL.

2. Contact the employer to request a contract adjustment, if necessary

• Send a formal request via email or registered letter, citing the specific regulations.
• Example of a request: 'Based on Article 3 of the construction CCNL, I request an adjustment of my salary to CHF 3,900 per month.'

3. Consult a labor expert or a union to obtain detailed information and assistance

• Unions such as USS or ASI can provide legal and contractual support.
• Example: a cross-border worker from Chiasso can turn to USS for free advice.

4. Monitor official communications from the government and unions to stay updated on new measures and available benefits

• Subscribe to the newsletters of the Ticino Department of Labor and regularly consult the Frontalieri Ticino website.

Useful tools

For cross-border workers who wish to verify the compliance of their employment contract, the salary calculator available on the Frontalieri Ticino website can be used. This tool can help determine whether their economic treatment complies with the most representative national collective labor agreements and identify any discrepancies.

📊 Practical example:

• A cross-border worker from Mendrisio with a monthly salary of CHF 3,500 discovers, through the calculator, that their salary is below the contractual minimum of CHF 3,700 for their sector. They can then request an adjustment from the employer.

Operational checklist

• [ ] Verify the CCNL applicable to your sector
• [ ] Check that the salary complies with the contractual minimums
• [ ] Verify the number of annual leave days provided
• [ ] Request a contractual adjustment, if necessary
• [ ] Consult an expert or a union for assistance

Comparisons between practical scenarios

• Scenario 1: A cross-border worker from Campione d'Italia with a contract not compliant with the construction CCNL can request an increase from CHF 3,500 to CHF 3,900 per month.
• Scenario 2: A cross-border worker from Bellinzona with a contract compliant with the commerce CCNL does not require any action, but can still verify other benefits provided by the labor decree.

Final CTA

For further information and assistance, cross-border workers can consult the salary calculator available on the Frontalieri Ticino website. This tool can help verify the compliance of their employment contract and identify any discrepancies.

⚠️ Important note: The procedures must be followed by June 30, 2024 to benefit from the new measures.

Source: varesenoi.it