Edited by Silvia Basile and Federica Carelli
On 1 June 2026, Legislative Decree No. 96 of 7 May 2026 was published in Italy’s Official Gazette, transposing Directive (EU) 2023/970 aimed at strengthening the application of the equal pay principle between men and women through pay transparency mechanisms. The decree entered into force on 7 June 2026.
The new legislation is designed to combat gender-based pay disparities — not by eliminating all salary differences, but by targeting those that are discriminatory in nature, i.e. lacking objective, gender-neutral justification. The decree fits within a broader regulatory framework that already includes the Italian Constitution, the Treaty on the Functioning of the European Union, and the Equal Opportunities Code (Legislative Decree No. 198/2006). A notable innovation is the express recognition of “intersectional discrimination”, namely discrimination based on gender that intersects with other factors such as race, ethnic origin, religion, disability, age, or sexual orientation.
Scope of application. The decree applies to all employers, both public and private, with regard to subordinate employment relationships — whether fixed-term or open-ended, including part-time arrangements — and covers managerial positions. Domestic work contracts and intermittent work contracts are excluded. Pre-employment transparency provisions also extend to job candidates.
Key definitions. The decree introduces several core concepts. “Pay” encompasses base salary and all amounts paid by the employer, including in-kind benefits and complementary or variable components. “Pay level” is defined as gross annual pay and the corresponding gross hourly pay, taking into account only continuous and fixed pay elements, while excluding individual non-structural payments granted on a personal, discretionary, or temporary basis. This last point is one of the most debated aspects of the transposition, as it would appear to exclude from the calculation certain institutions that are recognised on an individual basis but not as part of a broader structure. The concept of “work of equal value” is also introduced, assessed on the basis of objective, gender-neutral criteria taking into account skills, responsibilities, and working conditions.
Presumption of compliance. The decree provides that the application of a national collective bargaining agreement (CCNL) entered into by the comparatively most representative trade unions — including professional classification systems and pay structures — creates a presumption of compliance with the principles of equal pay and transparency. However, this presumption is rebuttable, as it remains possible to demonstrate the existence of individually discriminatory pay practices.
Pre-employment transparency obligations. One of the most significant changes concerns the pre-hiring stage. All employers must provide candidates with information on the initial pay or the relevant pay range, as well as the applicable CCNL provisions, directly in job postings and vacancy notices. Employers are also prohibited from requesting information about the candidate’s current or previous pay, including indirectly through third-party recruiters.
Information obligations during employment. Employers must make accessible to workers the criteria used to determine pay and pay levels, as well as those governing pay progression. The information provided at the start of the employment relationship pursuant to Legislative Decree No. 152/1997 constitutes the standard method of compliance, as it enables workers to know their classification level, initial pay, and the applicable CCNL. For employers applying a CCNL signed by the comparatively most representative trade unions, the obligation is deemed fulfilled through a reference to the collective agreement’s terms. Employers with fewer than fifty employees are not required to disclose pay progression criteria.
Individual right to information. Each worker has the right to request and receive in writing, within two months of the request, information on average pay levels, broken down by sex, for categories of workers performing the same work or work of equal value. This right may also be exercised through workers’ representatives or equality bodies, but no more than once a year. Employers may comply by publishing the relevant data on their intranet or in a restricted area of their corporate website. The decree also prohibits contractual clauses restricting workers’ ability to disclose their own pay.
Gender pay gap reporting. Employers with at least one hundred employees are subject to periodic reporting obligations on the gender pay gap. The data to be reported include, among others, the overall gender pay gap (including in variable components), the median gender pay gap, the percentage of workers by sex in each pay quartile, and the gap by worker category. Compliance deadlines are staggered by company size: employers with at least 250 employees must collect the data by 7 June 2027 and then annually; those with 150 to 249 employees by 7 June 2027 and then every three years; and those with 100 to 149 employees by 7 June 2031 and then every three years.
Joint pay assessment. Where the reported data reveal a difference in average pay levels between female and male workers of at least 5% in any worker category, the employer must justify the gap on the basis of objective, gender-neutral criteria. If no justification is provided and the gap is not corrected within six months, the employer is required to carry out a joint pay assessment with workers’ representatives. This assessment involves a detailed analysis of pay differences and the identification of necessary corrective measures.
Remedies and sanctions. Violations of the rights established by the decree are subject to the judicial remedies provided for in the Equal Opportunities Code. The decree expressly prohibits retaliation against workers who exercise their rights thereunder. Where discrimination is established, Article 41 of Legislative Decree No. 198/2006 applies.
Monitoring body. The decree establishes a monitoring body within the Ministry of Labour tasked with promoting the implementation of the decree’s measures, analysing the causes of the gender pay gap, collecting and publishing employer-reported data, and transmitting periodic reports to the European Commission. One or more ministerial decrees, to be adopted within 180 days of the decree’s entry into force, will define data collection methods and the monitoring body’s operating rules.
In summary, Legislative Decree No. 96/2026 marks a significant step towards greater transparency in pay policies. Employers are called upon to review their internal processes — starting from the recruitment stage — and to put in place the tools needed to comply with the new information obligations, with staggered deadlines based on company size. It will be essential to monitor the adoption of the implementing ministerial decrees, which will detail the operational modalities for data collection and reporting.
Let’s Talk
For a deeper discussion