Equal pay: transparency is making its way into companies
For decades, salary was a taboo subject, and at times even hard to understand in all its components.
Since 7 June 2026, however, this is no longer the case.
Legislative Decree No. 96/2026 implements the goal of EU Directive 2023/970: greater pay transparency and equal pay between men and women.
It does not impose equal salaries for everyone. Instead, it makes the reasons behind any differences easier to verify, turning an abstract principle into a concrete obligation that now enters the world of work.
If the criteria are neutral and consistent with the job classification system applied, the employer will be able to explain any differences.
If the gap cannot be explained, the new rules provide tools to bring it to light and correct it.
Transparency starts before hiring
Candidates must be given information on the starting pay or the relevant pay range, as well as on the applicable provisions of the collective agreement in force.
At the same time, employers can no longer ask candidates about the pay they received in previous jobs.
This is a very practical step, as it targets one of the practices that have fostered pay imbalances and carried them forward over time.
…and continues throughout employment
Once in the company, employees gain new and important information rights.
Every employee may request, once a year, the average pay levels, broken down by gender, for the categories of workers performing the same work or work of equal value.
The employer will then have two months to provide a written reply.
Within the same framework, any contractual clause preventing employees from disclosing their pay is null and void.
Monitoring and correction obligations
For larger companies, the rules are even stricter.
Employers with at least 100 employees are now required to collect and report data on the gender pay gap:
for those with at least 250 employees, the first deadline is 7 June 2027, and annually thereafter;
for those with 150 to 249 employees, also from 2027, but every three years; and
for those with 100 to 149 employees, the obligation applies from 7 June 2031.
If a gender pay gap of 5% or more emerges in a category of workers, is not justified by objective criteria and is not corrected within six months, a “joint pay assessment” must be carried out with workers’ representatives to identify the causes and take the necessary measures.
What about companies with fewer than 50 employees?
Here the legislator has opted for a lighter framework, balancing transparency with administrative sustainability.
The obligations at the recruitment stage remain in place, as does employees’ right to obtain comparative information on average pay levels, albeit with safeguards to protect privacy in small workforces.
However, the periodic gender pay gap reporting obligations for employers with at least 100 employees do not apply, nor does the joint pay assessment procedure.
In addition, employers with fewer than 50 employees are not required to make their pay progression criteria available.
Even for smaller businesses, transparency thus becomes a core principle, but with obligations tailored to their structure.
Practical implications
In short, the change is not only legal but cultural.
Pay is moving out of the shadows and becoming a figure that, when needed, must be explained, documented and, where appropriate, corrected.
For companies, the real dividing line is no longer between those who claim to believe in pay equity and those who do not, but:
between those who equip themselves to manage it through methods, clear criteria, structured processes and documented decisions, and
those who risk chasing it only once the problem has already surfaced.
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In this context, early consultation with experienced professionals becomes a decisive tool for correctly interpreting the new obligations, setting up consistent pay structures and preventing issues that could lead to litigation or late corrective action.
Litigation https://www.lrpartners.it/en/contenzioso
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