Household incomes in Italy increased in 2024, but a large number of people continue to face financial pressure.
According to the latest data released by Italy’s National Institute of Statistics (Istat), the average annual net income of households reached €39,501 in 2024, a 5.3% increase compared to 2023.
After adjusting for inflation, real income increased by 4.1%, following two consecutive years of decline.
Despite this improvement, the share of people at risk of poverty or social exclusion remains high. In 2025, 22.6% of the population falls into this category, slightly lower than 23.1% in 2024.
The indicator includes individuals who are at risk of poverty, experiencing serious material and social deprivation. While some components improved, others moved in the opposite direction.
The share of individuals living in low-work-intensity households declined to 8.2% in 2025, down from 9.2% in the previous year.
However, the proportion of people facing serious material and social deprivation increased to 5.2%. This group includes individuals who struggle to cover essential expenses such as rent, unexpected costs, proper meals, or basic leisure activities.
Income inequality also showed a slight improvement. The top 20% of households earn 5.1 times more than the bottom 20%, compared to 5.5 times in 2023. This indicates a narrowing gap, although the difference remains significant .
Looking at income distribution, the median income stands at €31,704 per year, which means half of households earn below this level. This highlights the gap between average income and what most families actually receive.
Regional differences continue to shape economic conditions. The Northeast records the lowest risk of poverty or social exclusion at 11.3%, while the South remains the most affected region at 38.4%.
Household structure also affects financial outcomes. Couples without children face lower risk levels, especially those under the age of 65. In contrast, single parents, individuals living alone, and families with three or more children experience higher exposure to poverty and economic instability .
The report also shows differences based on income sources. Households relying mainly on employment income face lower risk levels compared to those depending on pensions or public transfers.
At the same time, the risk of poverty increased for households whose main source of income comes from self-employment.
Another notable trend is the higher level of vulnerability among households with at least one foreign member. In 2025, the risk of poverty or social exclusion for this group rose to 41.5%, significantly higher than for households composed only of Italian citizens.
Although income levels have improved in the past year, they remain below levels recorded before the global financial crisis. In real terms, household income is still 4.9% lower than in 2007, indicating that the long-term recovery is not yet complete .
The data shows that economic conditions in Italy are improving in some areas, particularly in income growth and employment.
However, structural differences across regions, household types, and income sources continue to affect a large share of the population.
While the overall trend points to gradual recovery, millions of people remain in vulnerable situations, and the gap between improvement in data and everyday financial reality continues to persist.
