On 7 June 2026, Italy’s Legislative Decree No. 96/2026 entered into force, implementing Directive (EU) 2023/970 on pay transparency and equal pay between women and men. The new legislation introduces significant transparency obligations for employers and strengthens employees’ rights to access pay-related information.
Italy is among the first EU Member States to complete the transposition process, requiring employers to take immediate steps to review recruitment practices, compensation structures, internal policies, and reporting procedures.
The new rules apply to both public and private employers and cover employees engaged under permanent, fixed-term and part-time employment contracts, including executives. The transparency obligations applicable during the recruitment phase also extend to job applicants. Domestic workers and intermittent workers are excluded from the scope of the legislation.)
Key Changes for Employers
1. Pay Transparency During Recruitment
Employers must provide candidates with information regarding the initial salary or salary range applicable to the position before employment is agreed. Such information must be based on objective and gender-neutral criteria. Employers are also prohibited from requesting information about an applicant’s current or previous remuneration.
This represents a significant shift for many employers operating in Italy, where salary information has traditionally not been disclosed during the early stages of recruitment.
2. Transparency of Pay Structures and Career Progression
Employers must make available to employees the criteria used to determine: i) remuneration; ii) pay levels; and iii) pay progression.
These criteria must be objective, transparent and gender-neutral. The new rules are intended to ensure that compensation systems can be objectively justified and audited if challenged.
3. Employees’ Right to Information
Employees may request information regarding their individual pay level and the average pay levels, broken down by gender, of employees performing the same work or work of equal value.
Employers must respond in writing within the prescribed timeframe. The Italian decree limits such requests to one per year for each employee, a feature that differs from the broader wording of the Directive and reflects the legislator’s attempt to balance transparency with administrative burden.
In addition, contractual clauses prohibiting employees from discussing or disclosing their remuneration are no longer enforceable.
4. Gender Pay Gap Reporting
The legislation introduces reporting obligations for employers with at least 100 employees.
The reporting timetable is aligned with the EU Directive:
| Number of Employees | Reporting Frequency | First Reporting Deadline |
| 250 or more | Annual | 2027 |
| 150–249 | Every three years | 2027 |
| 100–149 | Every three years | 2031 |
Where reporting identifies a gender pay gap exceeding 5% that cannot be justified by objective and gender-neutral factors, employers may be required to undertake a joint pay assessment together with employee representatives.
Enhanced Enforcement and Litigation Risk
The Decree significantly strengthens enforcement mechanisms available to employees.
In line with the Directive, employees who suffer pay discrimination may seek full compensation, while procedural rules are designed to facilitate claims. The legislation also reinforces the principle that employers must be able to demonstrate that pay differences are based on objective and non-discriminatory criteria.
Another noteworthy development is the express recognition of “intersectional discrimination”, acknowledging situations where gender discrimination overlaps with other protected characteristics such as age, disability, ethnic origin, religion or sexual orientation.
Practical Steps for Employers
Although some reporting obligations will become applicable only in future years, many transparency requirements are already in force.
Employers operating in Italy should consider:
- reviewing recruitment and hiring procedures;
- updating job advertisements and offer letter templates;
- conducting internal pay audits;
- assessing whether existing grading and classification systems adequately support “equal pay for work of equal value”;
- documenting objective criteria governing remuneration and career progression;
- establishing procedures to manage employee information requests; and
- preparing for future gender pay gap reporting obligations.
Final Remarks
The Italian implementation of the Pay Transparency Directive marks one of the most significant developments in employment law in recent years. While the legislation is primarily aimed at reducing the gender pay gap, its practical effect will be far broader, requiring employers to increase the transparency, consistency and traceability of their remuneration practices.
For multinational groups, Italy’s new framework should also be considered alongside the implementation measures being adopted across other EU jurisdictions, as the Directive is expected to reshape compensation governance throughout Europe.
