[Italy] Gender pay transparency legislation enacted

In Italy, Legislative Decree 96/2026, implementing EU Directive 2023/970 (the “Decree”), has been enacted. The legislation is intended as a big step towards equal pay between men and women for the same work or work of equal value through pay transparency and related enforcement mechanisms, Bird & Bird reports.

The Decree will come into force on June 7. 

It will reportedly apply to both public and private sector employers and cover employment contracts of all kinds: fixed-term, open-ended and part-time contracts - including managerial roles (“dirigenti”). Domestic work contracts and on-call contracts are excluded from its scope. 

The primary obligations for employers include:

Pre-recruitment pay transparency

Employers must specify the initial salary or salary range for a position in job postings and vacancy notices, based on objective, gender-neutral criteria. In addition, they are prohibited from asking candidates about their current or previous remuneration, either directly or through third-party recruiters.

Transparency on pay criteria

Employers must make the criteria used to determine pay and pay levels, as well as the criteria governing pay progression, accessible to workers. Employers with fewer than 50 employees are not required to disclose pay progression criteria.

Right to pay information

Workers reportedly have the right to request and receive information on average pay levels - broken down by sex - for their category of work, in writing and within two months. This right may be exercised no more than once per year. Contractual clauses that prevent workers from disclosing information about their own pay are expressly prohibited.

Gender pay gap reporting

The reporting obligations under Article 9 apply to employers with at least 100 employees. Data which must be reported includes the overall and median gender pay gaps, the distribution of employees by pay quartile, and any pay gaps by worker category. The applicable deadlines are staggered as follows:

• Employers with 250 or more employees: first data collection by June 7, 2027, then annually

• Employers with 150 to 249 employees must collect data for the first time by June 7, 2027, and then every three years thereafter

• Employers with 100 to 149 employees must collect data for the first time by June 7, 2031 and then every three years

Joint pay assessment

Employers subject to pay gap reporting will be required to carry out a joint pay assessment with workers' representatives if the report reveals an unjustified gender pay gap of at least 5 per cent in any worker category that cannot be justified by objective, gender-neutral criteria and has not been corrected within six months of the relevant reporting date. After the assessment, the employer must, in collaboration with workers' representatives, adopt the necessary measures to eliminate unjustified pay differentials within a reasonable timeframe. 

Enforcement and sanctions

Any violations of rights arising from the Decree are subject to the remedies set out in the Equal Opportunities Code (Legislative Decree No. 198 of 2006). These remedies can be invoked by workers' representatives and trade unions acting under a specific mandate. If discriminatory practices are found to have occurred, the sanctions set out in Article 41 of the Equal Opportunities Code will be applied. 

According to Bird & Bird, employers can prepare by following these steps:

• Review and update job posting templates to include salary or salary band information

• Audit recruitment processes to remove any questions relating to candidates' current or previous pay

• Verify that pay determination and progression criteria are documented and accessible to employees

• Assess current headcount to determine which reporting obligations apply and when

• Prepare internal processes for collecting and reporting gender pay gap data before the applicable deadlines.

Source: Bird & Bird

In Italy, Legislative Decree 96/2026, implementing EU Directive 2023/970 (the “Decree”), has been enacted. The legislation is intended as a big step towards equal pay between men and women for the same work or work of equal value through pay transparency and related enforcement mechanisms, Bird & Bird reports.

The Decree will come into force on June 7. 

It will reportedly apply to both public and private sector employers and cover employment contracts of all kinds: fixed-term, open-ended and part-time contracts - including managerial roles (“dirigenti”). Domestic work contracts and on-call contracts are excluded from its scope. 

The primary obligations for employers include:

Pre-recruitment pay transparency

Employers must specify the initial salary or salary range for a position in job postings and vacancy notices, based on objective, gender-neutral criteria. In addition, they are prohibited from asking candidates about their current or previous remuneration, either directly or through third-party recruiters.

Transparency on pay criteria

Employers must make the criteria used to determine pay and pay levels, as well as the criteria governing pay progression, accessible to workers. Employers with fewer than 50 employees are not required to disclose pay progression criteria.

Right to pay information

Workers reportedly have the right to request and receive information on average pay levels - broken down by sex - for their category of work, in writing and within two months. This right may be exercised no more than once per year. Contractual clauses that prevent workers from disclosing information about their own pay are expressly prohibited.

Gender pay gap reporting

The reporting obligations under Article 9 apply to employers with at least 100 employees. Data which must be reported includes the overall and median gender pay gaps, the distribution of employees by pay quartile, and any pay gaps by worker category. The applicable deadlines are staggered as follows:

• Employers with 250 or more employees: first data collection by June 7, 2027, then annually

• Employers with 150 to 249 employees must collect data for the first time by June 7, 2027, and then every three years thereafter

• Employers with 100 to 149 employees must collect data for the first time by June 7, 2031 and then every three years

Joint pay assessment

Employers subject to pay gap reporting will be required to carry out a joint pay assessment with workers' representatives if the report reveals an unjustified gender pay gap of at least 5 per cent in any worker category that cannot be justified by objective, gender-neutral criteria and has not been corrected within six months of the relevant reporting date. After the assessment, the employer must, in collaboration with workers' representatives, adopt the necessary measures to eliminate unjustified pay differentials within a reasonable timeframe. 

Enforcement and sanctions

Any violations of rights arising from the Decree are subject to the remedies set out in the Equal Opportunities Code (Legislative Decree No. 198 of 2006). These remedies can be invoked by workers' representatives and trade unions acting under a specific mandate. If discriminatory practices are found to have occurred, the sanctions set out in Article 41 of the Equal Opportunities Code will be applied. 

According to Bird & Bird, employers can prepare by following these steps:

• Review and update job posting templates to include salary or salary band information

• Audit recruitment processes to remove any questions relating to candidates' current or previous pay

• Verify that pay determination and progression criteria are documented and accessible to employees

• Assess current headcount to determine which reporting obligations apply and when

• Prepare internal processes for collecting and reporting gender pay gap data before the applicable deadlines.

Source: Bird & Bird