Italy: The EU Pay Transparency Directive

Implementation and actions

What is the current implementation status and timing? (July 2026)

The Directive has been implemented in Italy. Legislative Decree no. 96 of 7 May 2026, implementing Directive (EU) 2023/970 was published in Official Gazette no. 125 on 1 June 2026 and entered into force on 7 June 2026, meeting the transposition deadline. The implementing legislation applies to all employers in respect of employment relationships.

The implementing legislation confirms the key obligations that were identified in the earlier draft published in February 2026, including mandatory pre-employment pay transparency, rights of access to information concerning average pay levels, and the types of workers covered. While the implementing legislation remains broadly aligned with the Directive there are a number of measures which are specific to Italy's implementation, as set out below.

What preparatory steps are you advising clients to take, including ensuring they have access to the required data?

Employers are already subject to existing requirements in Italy as the Legislative Decree No. 198/2006 (the "Code of equal opportunities between men and women") already includes some of the provisions contained in the Directive. 

However, Legislative Decree no 96 of 7 May 2026 introduces a number of additional provisions, in particular concerning the right to information and rights of protection which are now in force.

Given that certain obligations took effect immediately on 7 June 2026, employers should take the following steps without delay:

• Update all job postings to include the starting salary or salary range, together with the applicable National collective Bargaining Agreement.
• Train HR teams and external recruiters on the prohibition on requesting candidates' current or past salary information, whether directly, indirectly or through recruitment agencies.
• Update the information notice required under Legislative Decree no. 152/1997, or alternatively refer to the applicable National Collective Bargaining Agreement, to make available the criteria for determining salary, and where applicable, salary progression.
• Remove any contractual clauses restricting employees from disclosing their own pay: such clauses are now void.
• Establish a channel and procedure for handling employee requests for pay information, bearing in mind that requests may be made once a year and must be responded to within two months.
• Ensure that employees are informed annually of their right to request average pay level data broken down by gender and of the procedures for exercising that right.

Implementing the Directive's requirements

Which workers are in scope?

The concept of "worker" in Italian legislation can include both autonomous workers and employees. Legislative Decree no. 96 of 7 May 2026 applies to all employers, both public and private, with regard to employment relationships. The scope of the implementing legislation is limited to employees, including executives, while it excludes domestic work and intermittent contracts.

Collective bargaining agreements are emphasized as the primary tool to define "work of equal value". Other member states instead rely on employer designed job architectures and evaluation frameworks, and while these are permitted in the Italian version of the law, they are to be considered secondary. 

Who will be workers' representatives?

Legislative Decree no. 96 of 7 May 2026 defines "employee representatives" as the members of the work council (RSU (Rappresentanze Sindacali Unitarie) or RSA (Rappresentanze Sindcacali Aziendali)) or, in their absence, the territorial representatives of the trade union organizations that are signatories to the National Collective Bargaining Agreement (NCBA) applied in the company, as well as those persons to whom the workers may lawfully confer a specific mandate.

Are there any proposals around the methodology and tools for assessing "equal value"?

Italy's implementing legislation anchors "same work" and "work of equal value" in national collective bargaining agreement classification systems. Comparability flows from contractual levels negotiated at sector level but, to supplement the provisions of the applicable NCBAs, the implementing legislation also permits employer-designed job classification systems for the purpose of determining pay, provided they are based on objective and gender-neutral criteria.

The Department for Equal Opportunities, the National Committee for the Implementation of the Principles of Equal Treatment and Equal Opportunities between Male and Female Workers, and the Equality Advisors are responsible for promoting governance related to equal treatment and are tasked with drafting guidelines and best practices. Non-statutory guidance is available which identifies a set of best practices and gender-neutral evaluation criteria.

How is pay defined?

The definition of pay in Legislative Decree no. 96 of 7 May 2026 is broad, covering bonuses, benefits and in kind compensation in line with the Directive. 

Currently, companies with more than 50 employees must provide a report on male and female workers, including, amongst other things, the amount of total remuneration paid which includes supplementary salary components, allowances, payments linked to performance, bonuses and any other benefits in kind or other payments that have been granted to each employee.

There is also government guidance which can help identify the pay components for this report. It is likely that legislation relating to the Directive obligations will follow suit.

How are the requirements for transparency for job applicants being implemented?

Under Legislative Decree no. 96 of 7 May 2026, which took effect on 7 June 2026, all job postings must specify the starting salary or salary range for the role, as well as the applicable NCBA. This information must also be communicated during the recruitment process itself. Job postings must be drafted on the basis of objective and gender-neutral criteria, including with regard to the professional qualifications required.

Employers are prohibited from asking candidates for information about their current or past salaries. This prohibition is broad in scope; it applies whether the request is made directly, indirectly or through the recruitment agencies.  

Current position

Currently, all recruitment processes must be conducted in a non-discriminatory manner. There is a general prohibition on unequal treatment when offering a job and handling the filling of a vacancy, employment services and entering and terminating an employment relationship; employers may not therefore discriminate on the basis of certain grounds for discrimination. Acting in violation of this legislation is prohibited and may result in unlawful conduct (damages claim).

Companies can also obtain the so-called Gender Equality Certification, which aims to attest to the policies and concrete measures adopted by employers to reduce the gender gap in relation to opportunities for growth within the company, equal pay for equal work, gender difference management policies, and maternity protection. The Gender Equality Certification can bring some benefits including contributory exemption and preferential treatment in public tenders.

How are the requirements for transparency for workers being implemented?

Under Legislative Decree no. 96 of 7 May 2026, employers must make available to their employees the criteria used to determine pay and pay levels, as well as those established for employees' pay progression. Employers with fewer than 50 employees are exempt from the salary progression disclosure obligation only; all other transparency obligations apply regardless of employer size.

The implementing legislation provides that the ordinary way for employers to comply with pay transparency obligations is the information notice that employers are already required to give employees under Legislative Decree no. 152/1997.  

For employers applying a national collective bargaining agreement signed by the most representative trade unions (or equivalent), this transparency obligation is deemed fulfilled by referring to the classification criteria, pay levels and economic treatment provided for in the applicable collective agreement and company‑level agreements.

Employees are entitled to request, once a year, and to receive information, also through their representatives, on average pay levels, disaggregated by gender, for categories of employees performing the same work or work of equal value. Employers must respond to such a request within two months. Employers may publish such data proactively on an intranet or restricted website, rather than responding individually to each employee request. 

Employers are also required to inform all employees annually of their right to request pay information and of the procedures for exercising that right. 

Contractual clauses preventing employees from disclosing their own pay are void.

How are the gender pay reporting requirements being implemented?

Gender pay gap reporting obligations under Legislative Decree no. 96 of 7 May 2026 are deferred and will apply in a staggered manner. They apply to employers with at least 100 employees, with reporting deadlines staggered between 2027 and 2031 depending on company size. The technical details of the reporting methodology will be established by ministerial decrees.

Where a unified group pay policy applies, data may be reported at country level, rather than legal entity by entity.

The existing obligations under Legislative Decree no 198/2006, which applies to companies with more than 50 employees and requires reporting every two years, exceed the implementing legislation's requirements for gender pay gap reporting in relation to the employer's occupational threshold and the frequency of the reporting obligation.

Current position

Article 46, Legislative Decree 198/2006 establishes an obligation for companies with more than 50 employees to draft a report every two years on male and female personnel in each profession, in relation to: hiring, training, promotion, levels, category or qualification changes and other mobility phenomena, intervention of the wage guarantee fund, dismissals, early retirements, and retirements, and the actual remuneration paid.

When counting workers for the purposes of the Directive's pay reporting thresholds, will only workers of a particular "legal entity" be in scope?

Under the current legislation, the trigger for reporting is calculated by looking at each "legal" employer i.e. the employee's direct employer, rather than across the group of companies. Each legal employer meeting the trigger must publish its own report.

However, Italy may see "enterprise network contracts" which establish a form of co-employership. While they are not very common, in such cases, the trigger might consider all the workers of the enterprises who are part of such a contract. This aspect is not addressed in the implementing legislation.

This aspect is not defined in the draft legislation. 

Do we have details on how the requirement for a joint pay assessment will be implemented?

Legislative Decree no 96 of 7 May 2026 reflects the provision of the Directive and confirms that employers with at least 100 employees must carry out a joint pay assessment with employee representatives when: (i) pay data show an average gender pay gap of at least 5% in any employee category, (ii) the gap is not justified by objective, gender‑neutral criteria, and (iii) it is not remedied within six months of the pay information being disclosed. 

Employers must share the results with employees and their representatives, and communicate them to the monitoring authority (and, upon request, to the Labour Inspectorate and equality body). They must then, within a reasonable time and in cooperation with employee representatives, implement measures to eliminate unjustified pay differences, including reviewing or introducing gender‑neutral job evaluation and classification systems.

Do we have details as to how the Directive obligations will be enforced and potential sanctions?

Legislative Decree no 96 of 7 May 2026, with regard to judicial protection in the event of a breach of the decree itself, refers to the rules already in force in Italy set out in the Equal Opportunities Code. 

Remedies may also be pursed, on the basis of a specific mandate, by employees' representatives, trade unions or associations that have a legitimate interest in ensuring equality between men and women. 

In the event that discrimination is found in breach of this obligation, the draft legislation provides for the imposition of the sanctions set out in the Equal Opportunities Code. 

Are there any tools or guidance available to support employers?

Existing non-statutory guidance supporting gender pay reporting is available. The Department for Equal Opportunities, the National Committee for the Implementation of the Principles of Equal Treatment and Equal Opportunities between Male and Female Workers and the Equality Advisors are responsible for promoting governance related to equal treatment and are tasked with drafting guidance and best practices.

Return to main EU Pay Transparency Directive page