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Public Sector Employees in Italy to Receive Pay Raises and Option for a Four-Day Workweek

Historic Agreement Brings Flexibility and Career Advancements

An agreement has been reached for renewing the national collective contract for Italy’s public administration employees, signed between ARAN (the Agency for the Negotiation of Public Administrations) and some public employee unions. However, two major unions, CGIL and UIL, declined to sign. This contract renewal affects only central institutions, such as ministries, and excludes local entities like municipalities. Under the new agreement, employees will receive monthly salary increases ranging from €121 to €194, depending on their role, along with more flexible career advancement and work arrangements—an unusual shift for a traditionally rigid sector.

A notable feature of the new contract is the introduction of an optional four-day workweek, allowing employees to work the same 36-hour week across fewer days with no reduction in pay. Though this shortened week has become increasingly popular in private sector experiments, its impact on productivity and broader economic outcomes remains uncertain if expanded nationally. Still, early results in various companies suggest increased employee satisfaction.

Public sector employees will need to negotiate the possibility of a four-day week directly with their supervisors, with implementation tailored to individual office needs and responsibilities. The restructured week will require employees to work nine-hour days across four days, with a break for lunch, to meet the 36-hour weekly target.

Minister for Public Administration Paolo Zangrillo highlighted the government’s aim to make public sector jobs more attractive to younger workers, citing the need to shift from a “steady job” culture to one that also offers flexibility and career appeal. In an interview with Corriere, Zangrillo emphasized this goal, saying, “We need to go from a steady job to a ‘cool’ job by providing faster hiring, more flexibility for a healthy work-life balance, and increased training opportunities.” The contract renewal, which covers 2022-2024, also expands remote work options and includes meal vouchers for remote workers, marking a significant modernization of Italy’s public sector employment framework.