Renewal Agreement Regarding the Economic Provisions of the National Collective Bargaining Agreement for Executives in the Service Sector
- April 24, 2023
- Reading time: 5 min
News . 11/2023
Subject: Renewal Agreement Regarding the Wage Provisions of the National Collective Bargaining Agreement for Executives in the Tertiary, Distribution, and Service Sectors
On April 12, 2023, the agreement to renew the National Collective Bargaining Agreement for Executives in the Tertiary, Distribution, and Services Sectors was signed.
The social partners that signed the agreement are: the General Confederation of Italian Commerce, Tourism, Services, Professions, and SMEs – Confcommercio – Imprese per l’Italia, and Manageritalia – National Federation of Executives, Managers, and Professionals in Commerce, Transportation, Tourism, Services, and the Advanced Tertiary Sector.
This agreement, which governs the economic provisions of the relevant collective bargaining agreement, must be considered in conjunction with the agreement of June 16, 2021, which governs the regulatory provisions. It takes effect on January 1, 2022 (subject to the specific effective dates set forth for individual institutions) and will remain in force through December 31, 2025.
One-time
As back pay, a one-time lump sum of €2,000.00 gross will be paid in three installments:
€700.00 – with the pay for the month of May 2023;
€700.00 – with the September 2023 paycheck September 2023;
€600.00 – with the salary for the month of November 2023.
The one-time payment is made to fully cover the period from January 1, 2020, to December 31, 2022, for executives employed as of April 12, 2023, including those appointed between January 1, 2020, and December 31, 2022.
This one-time payment does not apply to executives appointed on or after January 1, 2023.
For executives hired or appointed between January 1, 2020, and December 31, 2022, and who are still employed as of the date this agreement is signed, the amount will be paid on a pro-rata basis according to the number of months of service accrued in that position during the aforementioned period.
This amount is to be considered gross of the ordinary contribution due and of IRPEF, which will be calculated under the separate taxation regime; it is not taken into account for the purposes of calculating severance pay or any other contractual benefit. In the event of termination of employment prior to the payment of the installments, the total or remaining amount of the One-Time Payment will be paid out with the severance pay.
Adjustment of the minimum monthly wage and pay increases
Effective April 12, 2023, certain articles of the National Collective Bargaining Agreement have been amended:
“Art. 5 – Minimum Monthly Contractual Amount”
“Art. 6 – Pay Increase”
“Art. 21 – Professional development and training for executives, active labor market policies, and outplacement (CFMT)”
“Section 21-bis – Welfare Services for Executives and Their Families (CFMT)”
“Art. 25 – Supplementary Pension Plan (Mario Negri Fund)”
In summary, the new contractual minimums are specified below:
Effective December 1, 2023, the minimum monthly contractual amount is set at €4,040.00;
Effective July 1, 2024, the minimum wage is set at €4,190.00;
Effective July 1, 2025, the minimum contractual amount is set at €4,340.00.
For executives employed as of November 30, 2023, the increase in the minimum monthly contractual salary is implemented through the payment of the salary increases provided for in:
€150.00 per month starting December 1, 2023;
€150.00 per month starting July 1, 2024;
€150.00 per month starting July 1, 2025.
These increases may be offset by amounts paid by employers as down payments or advances on future contractual wage increases granted after December 31, 2019.
Welfare Services
The parties have established an organization called CFMT (Center for Management Training in the Service Sector), which is jointly managed and aims to provide companies and their executives with training and professional development opportunities.
The training programs are available to managers at no cost.
The training days selected by the company for the professional development of its managers, as well as any travel and accommodation expenses, will be covered by the company, and these days will be considered workdays.
The training days selected by the manager will be the responsibility of the individual participant, including any travel expenses, and these days will be deducted from the participant’s annual leave balance.
Effective October 1, 2021, the annual CFMT contribution is €290.00, payable by the employer, and €130.00, payable by the manager.
For the years 2024 and 2025 only, the annual contribution will be increased by €50.00, of which €25.00 will be paid by the employer and €25.00 by the executive. As a result of this increase, effective January 1, 2024, and January 1, 2025, the annual contribution will be €315.00 paid by the employer and €155.00 paid by the Executive.
On a transitional basis, these contributions will be paid into the “Mario Negri” Pension Fund, in accordance with the criteria, procedures, and methods established for the payment of contributions to that Fund.
Effective July 1, 2021, in the event of termination of employment—including cases resulting from a settlement agreement or conciliation—with the exception of termination for cause, dismissal for disciplinary reasons, voluntary resignation, or termination by mutual agreement, the employer shall pay the CFMT a contribution of €2,500.00 for the initiation of outplacement or for access to active labor market programs for the reemployment of executives.
In order to optimize and strengthen the contractual welfare system, the CFMT has been assigned support and organizational responsibilities related to the implementation of a welfare platform for managers in the service sector.
To this end, on an experimental basis and limited to the term of this agreement, effective January 1, 2024, and January 1, 2025, the introduction of a mandatory welfare contribution in the amount of €1,000.00 per year, which can be spent through the CFMT Welfare Platform within the scope of services and coverage defined by the Parties. The employer may credit additional amounts by adopting a company regulation or agreement, provided they are of equal value and benefit all employed executives.
The minimum contractual welfare benefit will be paid in addition to any flexible benefits recognized by the employer.
The amount of €1,000.00 is recognized on a pro-rata basis in the event of hiring or appointment occurring during the reference year, whether under a permanent or fixed-term contract, while it is not prorated if the executive is employed under a part-time contract.
Supplementary Pension Plan (Mario Negri Fund)
A supplementary pension plan is provided for executives, which supplements the mandatory disability, old-age, and survivors’ insurance offered by INPS and/or mandatory substitute funds, and is managed by the Mario Negri Fund.
As is already known, the standard contribution consists of the sum of the employer’s contribution—set at 12.86% effective October 1, 2021—and the executive’s contribution—set at 1%—both calculated based on the standard annual salary of €59,224.54.
The supplementary contribution, as already specified in our previous News Flash, including the employer’s share of the contractual membership fee, amounts to 2.39% of the aforementioned annual contractual salary as of January 1, 2023, and this contribution will increase to 2.43% as of January 1, 2024, and to 2.47% effective January 1, 2025.
Effective in 2018, the standard employer contribution—equal to 4.13% of the annual standard salary—remains in effect for executives hired under the incentive program. Please note that, for the purposes of supplemental pension coverage, the Mario Negri Fund accounts for severance pay separately, regardless of how it is paid out.
The “Mario Negri” Pension Fund for Executives in Commercial, Shipping, and Transportation Companies is governed by specific bylaws and regulations agreed upon by the parties that entered into the agreement referred to in this News.
Reference: Renewal Agreement of April 12, 2023
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