Italian Pay Transparency: What employers need to know
Italy has implemented the EU Pay Transparency Directive through Legislative Decree no. 96/2026, published on 1st July 2026 introducing new obligations for employers on pay information, transparency of pay‑setting criteria and gender pay reporting. The new rules are designed to make pay practices more transparent, to reduce unjustified pay differences between men and women and to strengthen workers’ ability to obtain information about pay levels and criteria used to determine remuneration.
Who is covered
The Decree applies to employment contracts of subordinate workers, whether fixed‑term or open‑ended, including part‑time arrangements and executives (dirigenti), with the sole exception of domestic work contracts. For the specific purpose of pre‑employment transparency (Article 5), the Decree also applies to job applicants, who must be provided with information on initial pay or a pay range and the relevant collective‑agreement provisions that apply to the role.
A notable point for Italian practice is the treatment of “quasi‑subordinate” arrangements (i.e. collaborazioni coordinate e continuative): these forms of engagement are likely excluded from the Decree’s scope, which focuses on proper subordinate employment relationships.
What counts as “pay”
The Decree adopts a broad definition of pay. “Pay” includes base salary and “all amounts and benefits paid by the employer, directly or indirectly, including in kind, to the worker in connection with the employment relationship, including any supplementary or variable components.” This expansive definition means that fixed pay, variable components, benefits in kind and any other payments “in connection” with employment are generally within scope.
The Decree also defines a narrower concept of “pay level” (used for reporting and comparisons) as annual gross remuneration and the corresponding gross hourly remuneration, understood as the totality of continuous and fixed pay elements, excluding non‑structural individual economic treatments (for example, discretionary one‑off payments; it is still under discussion if the superminimo will be included or not).
Pre‑employment transparency and recruitment
Under Article 5, employers must provide job applicants with either the initial pay (interpreted broadly to include variable components and benefits), or a corresponding pay range, and the relevant provisions of the collective agreement that apply to the position.
Employers are prohibited from asking applicants about their pay history, and they must not obtain such information indirectly. This shifts recruitment practice: job adverts and offer letters must contain clear pay information, and HR processes must be adjusted to avoid salary‑history checks.
Right to information and internal transparency
Workers have a right to request information on average pay levels broken down by sex for categories of workers performing the same work or work of equal value. Employers must make the criteria used to determine pay and for pay progression accessible to workers – for many employers this will mean documenting and publishing objective, gender‑neutral criteria for classification, performance assessment and economic progression.
Where a national collective bargaining agreement that is representative at national level applies, referring to the NBCA’s classification and pay tables will generally satisfy the transparency obligation.
Reporting obligations, thresholds and timing
Mandatory gender‑pay reporting will apply to employers meeting size thresholds set out in the Decree: Employers with 100–149 employees: reporting every 3 years (starting 7 June 2031). Employers with 150–249 employees: reporting every 3 years (starting 7 June 2027). Employers with 250+ employees: annual reporting (starting 7 June 2027).
Agency workers are not included in the Italian thresholds. Employers with fewer than 100 employees may prepare reports voluntarily.
The detailed rules and templates for the pay‑transparency report are still to be issued by ministerial implementing decrees (to be adopted within 90 days from 7 June 2026), so practical reporting formats and technical requirements remain pending.
Joint pay assessment and corrective measures
Where the pay report reveals a gender pay gap of at least 5% within a worker category that cannot be objectively justified, the employer must carry out a joint pay assessment with workers’ representatives. If the gap is not remedied within six months, the employer must adopt corrective measures in cooperation with representatives and communicate results to the Labour Inspectorate. This mechanism creates a structured remediation path and places emphasis on negotiation with trade unions or employee representatives.
Enforcement and sanctions
Existing judicial protections and sanctions under the Code of Equal Opportunities (Legislative Decree 198/2006) apply. Procedural features include labour‑court proceedings and a reversal of the burden of proof in discrimination claims. Sanctions may range from administrative fines to more severe consequences such as loss of public benefits, exclusion from public procurement or a temporary ban on accessing incentives where systemic non‑compliance is found.
Practical implications for employers: an immediate checklist
–Map scope: identify which contracts and categories fall within the Decree (including dirigenti).
–Document pay components: prepare a clear inventory of fixed pay – both minimum wage and superminimo – variable pay, benefits in kind and other payments “in connection” with employment.
–Publish pay‑setting criteria: draft written, objective and gender‑neutral criteria for pay determination and progression; make them accessible to workers. Refers to the NCBA applied.
– Recruitment updates: ensure job offers and recruitment materials include initial pay or a pay range and remove salary‑history questions from selection processes.
– Engage social partners: where applicable, begin dialogue with trade unions or employee representatives on pay assessment methodologies.