Italy
Renewal of the Metalworking sector NCBA
Impact date: 4 June 2026 (with certain measures applying from 1 January 2027 and later dates)
On 4 June 2026, the Metalworking sector National Collective Bargaining Agreement (“NCBA”) for SMEs was renewed. The new agreement will be valid until 31 December 2028. The most significant provisions include:
- a gradual increase to minimum contractual pay rates from June 2026, June 2027 and June 2028 across all levels
- introduction of specific grounds for fixed-term contracts exceeding 12 months, together with a new requirement to regularize at least 20% of fixed-term employees whose contracts ended in the previous year
- right for agency workers employed under permanent staff-leasing arrangements to be hired directly by the user company after more than 48 months working for the same employer
- longer periods required to qualify for promotion to a higher contractual level
- extension of protection for employees with certified disabilities
- increase in annual overtime limits and enhancement of welfare and supplementary healthcare contributions
Employer implications/action needed Employers should review pay structures, fixed-term and agency work arrangements, promotion practices and payroll processes to ensure compliance with the new NCBA provisions.
Employer risk Failure to comply may result in legal claims related to breaches of the NCBA.
Pay transparency
Impact date: 7 June 2026
Legislative Decree No. 96/2026 implements Directive (EU) 2023/970 on pay transparency and strengthens the principle of equal pay for equal work.
Below is a summary of the key updates relevant for employers:
- indication of starting pay or salary ranges and the applicable NCBA in job advertisements, together with a ban on requesting candidates’ salary history
- obligation to respect employees’ right to receive, once a year, information on average pay levels by gender for comparable roles, with employers required to answer within two months
- prohibition on pay confidentiality clauses restricting employees from disclosing their remunerationpay data reporting obligations
- obligation of joint assessment with trade unions where an unjustified gender pay gap of at least 5% is identified and not remedied within six months
Employer implications/action needed Employers should review recruitment practices, ensure pay-setting criteria are documented and accessible, establish processes to handle employee pay information requests, and prepare for gender pay gap reporting obligations.
Employer risk In the event of non-compliance, employers may face administrative fines, mandatory pay adjustments, and exclusion from public procurement contracts.
Data protection – access to former employee’s personal locker
Impact date: 18 June 2026
On 18 June 2026, the Italian Data Protection Authority sanctioned a company for unlawfully opening a former employee’s personal locker and inspecting its contents.
The Authority confirmed that opening an employee’s personal locker may constitute unlawful processing of personal data, even after termination of employment.
Employer implications/action needed Employers should review workplace privacy policies and adopt clear rules on the use of personal lockers, ensuring that they are not opened in the absence of the employee without prior notice.
Employer risk Non-compliant access to employees’ lockers may expose employers to fines.
Employees working abroad
Impact date: 18 June 2026
On 18 June 2026, the L'Istituto Nazionale della Previdenza Sociale (INPS) provided guidance on the 2026 conventional remuneration rates used to calculate social security contributions for employees working in non-EU countries that do not have a social security agreement with Italy.
Below is a summary of the key updates relevant for employers:
- confirmation that the rates established by the Interministerial Decree of 19 May 2026 must be used as the basis for calculating social security contributions in the relevant countries
- possibility to regularize non-compliant contributions for the period January to June 2026 without additional charges
Employer implications/action needed Employers should verify that social security contributions are calculated using the 2026 conventional remuneration rates.
Employer risk Incorrect contribution calculations may lead to social security compliance issues and the need for subsequent regularization.
Severance pay allocation
Impact date: 1 July 2026
On 10 July 2026, the INPS provided guidance on the new automatic enrolment mechanism for supplementary pension schemes applicable to private-sector newly hired employees.
Below is a summary of the key updates relevant for employers:
- newly hired employees have 60 days from hiring to opt out of the automatic enrolment mechanism, chose a different supplementary pension fund, or keep their severance pay under the ordinary regime
- severance pay accrued between the hiring date and the employee’s decision day should be treated as arrears for contribution purposes
Employer implications/action needed Employers should ensure that newly hired employees are properly informed of the available severance pay options and monitor the 60-day period and the correct allocation of severance pay.
Employer risk Incorrect management of severance pay allocation may result in compliance issues requiring regularization.
Tax-exempt welfare for non-cohabiting family members
Impact date: 14 August 2026
On 14 August 2026, the Italian Revenue Agency clarified that the favourable tax treatment applicable to certain benefits may also apply to expenses incurred for elderly or non-self-sufficient family members who do not live with employees. Therefore, reimbursement of eligible care expenses costs does not constitute taxable employment income.
Employer implications/action needed Employers should review welfare policies and reimbursement schemes to ensure that eligible expenses are assessed in line with the Revenue Agency’s guidance.
Employer risk Incorrect welfare treatment may result in tax compliance issues.
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