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Italy has taken a major step forward in implementing the EU Pay Transparency Directive (Directive (EU) 2023/970) by publishing a draft legislative decree that will transpose the Directive into national law. The draft, consisting of 16 articles, is currently under review by government ministers and is expected to be adopted before the 7 June 2026 transposition deadline.

1. Stronger Pay Transparency Before and During Recruitment

One of the most impactful changes in the draft law concerns how employers communicate pay in relation to recruitment:

• Mandatory disclosure of salary information in job postings: Employers must provide salary levels or salary ranges when advertising vacancies, ensuring candidates have clear pay expectations before the hiring process begins.

• Prohibition on asking salary history: Employers may no longer ask job candidates about their past or current compensation. This aligns with the Directive’s goal of preventing historical pay disparities from influencing new offers.

These rules aim to eliminate pay bias early in the employment process and promote fairness from the outset.

2. Expanded Scope of Workers Covered

The draft explicitly clarifies that the Directive’s pay transparency and pay equality provisions will apply across all categories of workers, including:

• Permanent and temporary employees

• Agency workers

• Apprentices and domestic workers

• Collaborators under coordinated and continuous arrangements

This broad definition ensures that transparency obligations extend beyond traditional employment relationships.

3. Clearer Definitions of “Same Work” and “Work of Equal Value”

To enforce pay equality, the draft establishes detailed criteria for comparing roles:

• “Same work” refers to identical duties or duties classified at the same level under applicable national collective agreements (CCNL).

• “Work of equal value” means different roles with comparable duties evaluated according to objective, gender-neutral criteria such as skills, effort, responsibility, and working conditions.

This structure helps employers assess whether different positions should be remunerated on an equal basis, an essential element for compliance and pay gap analysis.

4. Transparency Throughout the Employment Relationship

Under the draft law, workers will have stronger rights to access information on remuneration:

• Employees can request data on average pay levels for workers doing the same job or work of equal value.

• Employers must provide this information within a set timeframe, making pay structures and pay decisions more transparent.

The legislation also requires that criteria for determining pay, promotions, and career progression must be clear, objective, and gender-neutral, and accessible to employees upon request.

5. Obligation to Monitor and Address Gender Pay Gaps

Italian draft rules reflect the Directive’s emphasis on pay gap reporting and remediation:

• Employers will be required to regularly assess gender pay differences and take corrective actions where unjustified disparities are found.

• The draft encourages collaboration with employee representatives and requires transparent reporting mechanisms.

This move reinforces accountability and ensures employers not only measure pay gaps but also address them.

6. Enhanced Employee Rights and Enforcement Mechanisms

The draft includes stronger protections for workers, including:

• The right to request and receive documentation on pay criteria and pay outcomes.

• Mechanisms to challenge discriminatory pay practices.

• Provisions to ensure access to information, including pay averages, within specified deadlines.

These changes align with the Directive’s objectives to empower employees with actionable information about their pay and rights.

Want to know more about the EU Pay Transparency Directive?

Read more here

What This Means for Employers

Italy’s draft pay transparency law represents a significant shift in how pay practices will be regulated. Employers who operate in Italy or plan to do so should begin adjusting their HR and compensation frameworks now — including job posting processes, internal pay analysis, and employee communication protocols — to align with the new obligations once the law is finalized.