INPS: wages up 3.6% in 2024 but purchasing power down compared with pre-Covid levels

Inflation for 2019–2025 to exceed wage growth

(Il Sole 24 Ore Radiocor) - ‘Nominal wages have risen but have lost purchasing power in real terms. Wage stagnation, a long-term structural phenomenon dating back to the 1980s, is

‘Added to this are the inflationary trends of recent years. Against this backdrop, the purchasing power of low-income earners has been safeguarded by the social security and tax policies of recent years.’ This is stated in the 25th INPS Annual Report, presented this morning. In particular, the report notes that “in 2025, for the 21.045 million public and private sector employees (excluding agricultural and domestic workers), the average actual annual remuneration stood at 27,649 euros, representing a 3.6 per cent increase on the previous year and a 14.5 per cent increase compared with 2019 (pre-COVID), corresponding to an average annual growth rate (AAGR) of 2.3 per cent”. To assess the true significance of wage trends, the Report explains, the “crucial comparison is with inflation. Over the period 2019–2025, price level growth is estimated to be between 18.2 per cent (FOI Index) and 20.5 per cent (HICP Index): in both cases, these figures are significantly higher than

"as observed in the trend in gross pay".

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