By Zhuang Liu
BLOG OVERVIEW: On February 5, 2026, Italy's Council of Ministers gave preliminary approval of a draft legislative decree implementing the EU Pay Transparency Directive (2023/970/EU), marking a significant step toward the June 7, 2026, transposition deadline. The draft establishes key obligations for employers operating in Italy, including pay transparency at the recruitment stage, employee rights to pay information, and gender pay gap reporting requirements phased in by employer size starting with organizations of 250 or more employees by June 7, 2027. Italy's approach notably relies on national collective bargaining agreements as a reference framework for pay classification systems, and introduces joint pay assessments when an unjustified gender pay gap of 5% or more is identified and not corrected within six months. Employers with operations in Italy should begin assessing their readiness now, as key transparency obligations are expected to take effect ahead of the Directive's transposition deadline.
On February 5, 2026, Italy’s Council of Ministers gave preliminary approval of their draft legislative decree implementing the European Union (EU) Pay Transparency Directive. While the proposal largely mirrors the Directive’s framework, it provides early insight into how Italy intends to operationalize pay transparency obligations and enforcement. For employers in Italy, the draft signals several areas where compliance preparation should begin.
Defining Same Work and Work of Equal Value
Article 4 of the draft legislation establishes how employers should determine whether employees perform the same work or work of equal value for equal pay purposes. The draft requires pay and job classification systems to be based on objective and gender-neutral criteria, such as skills, responsibilities, and working conditions. Notably, Italy relies heavily on national collective bargaining agreements to define pay classification systems, which are presumed to comply with the decree’s principles of equal pay and transparency, and can be used as a reference for pay comparisons. Additional guidelines for the implementation of Article 4 may be adopted by the Minister of Labour and Social Policies by the end of 2026.
Pay Transparency at Recruitment Stage
Article 5 of the draft legislation introduces transparency requirements at the recruitment stage, specifically in job notices and announcements. To comply, employers will need to:
In addition, Article 6 requires employers with 50 or more employees to make information about the criteria used to determine pay levels and pay progression accessible to employees. These rules are designed to prevent historic pay inequalities starting from the recruitment stage.
Employee Right to Pay Information
According to Article 7, employees have the right to request information about their pay and how it compares to colleagues performing the same work or work of equal value. Specifically, workers have the right to request the average pay levels by gender for the categories of workers who perform the same work or work of equal value, and request further clarification where needed. Employers must respond in writing within two months of the request and present the data in a way that allows meaningful comparison.
Gender Pay Gap Reporting
The draft confirms that Italy will introduce the Directive’s gender pay gap reporting obligations. Employers above the relevant headcount thresholds will need to periodically report gender pay data covering areas such as:
The reporting obligations also differ by employer size:
Joint Pay Assessments
The draft also introduces the requirement for joint pay assessments, which are triggered when gender pay gap reporting reveals a potentially unjustified disparity. Under Article 10, employers subject to the pay reporting obligations must carry out a joint assessment with workers’ representatives if all three of the following conditions are met:
The joint assessment is intended to identify, address, and prevent unjustified gender pay differences. It requires a detailed analysis of pay structures within the organization, including:
The review must also consider whether employees returning from maternity, paternity, and parental leave experienced pay progression during the relevant period and assess if measures taken to address pay gaps have been justified and effective.
Enforcement and Penalties
The draft legislation does not spell out specific penalties for violations or non-compliance. However, the draft does indicate that if the decree is violated, Article 41 of the Code of Equal Opportunities (Legislative Decree No. 198 of 11 April 2006) will apply.
What’s Next
Following review by Parliament, the Italian government is expected to finalize the legislative decree implementing the EU Pay Transparency Directive. Once adopted, the new framework would formally transpose the Directive into Italian law, with key transparency obligations expected to take effect ahead of the Directive’s June 7, 2026, transposition deadline. As in other EU member states, certain obligations such as the gender pay gap reporting won’t begin until 2027 or 2031 depending on employer size.
DCI will continue to track developments across Europe as member states move forward with implementing the Directive and will provide updates as further legislative details emerge. To receive updates, sign up for DCI’s EU Pay Transparency alerts.