On 5 February 2026, the Italian Council of Ministers approved a draft legislative decree implementing the EU Pay Transparency Directive (the Directive), which must be transposed into national law by 7 June 2026.
Following this initial green light from the Council of Ministers, the draft legislative decree is now under examination by the parliamentary committees, before returning once again to the Council of Ministers for final approval.
The draft closely follows the Directive, albeit with a few noteworthy national specificities.
- The Italian definition of “pay level”
the Italian draft expressly excludes individual pay components from the concept of “pay level”, despite the fact that these components represent one of the areas in which gender pay gaps most frequently arise.
This definitional change undoubtedly raises significant concerns as to its compatibility with the level of protection required by EU law.
- National collective bargaining agreements as the reference point for “equal work” and “work of equal value”
The concepts of “equal work” and “work of equal value” are firmly anchored to national frameworks. In particular, the Italian draft states that national collective bargaining agreements (NCBAs) would be the main reference to classify workers and determine pay structures. For employers not subject to an NCBA, the reference would be the NCBA signed by the most representative trade unions at the national level for their industry or sector.
- Pay Transparency for job applicants: Italian job ads must show pay
While the Directive does not impose a rigid obligation for salary information to always be included in job advertisements – leaving Member States the option to adopt alternative ways of sharing such information – the Italian draft legislation expressly requires employers to disclose the initial pay, or its range, for each position in published job vacancy notices.
- Employees’ right to information: from requests to readily available
In line with the Directive, the Italian draft legislation grants employees the right to obtain information about their own pay level as well as on the average pay levels, broken down by gender, for categories of workers performing the same work or work of equal value.
Also, employers shall inform all employees annually of their right to receive such pay information and of the steps they need to undertake to exercise that right.
Under the draft legislation, Italian employers may, however, choose to make such information available proactively – for example, through the company intranet or restricted areas of corporate websites – rather than responding individually to each employee request. By voluntarily making pay information accessible, employers can potentially reduce the volume of individual information requests.
- Group approach to pay gap reporting
The Italian draft legislation is broadly consistent with the Directive regarding pay gap reporting thresholds, timelines and frequency.
That said, where a unified group pay policy is in place, the draft allows pay gap data to be aggregated at national level, rather than by legal entity. This approach is permitted when national aggregation better reflects how pay is actually managed within the group.
- No shift in the burden of proof
The Directive provides that, in case of non-compliance with pay transparency obligations, there is a full shift of the burden of proof (i.e., the employer shall prove that there has been no direct or indirect discrimination in relation to pay). However, this burden of proof regime is not reflected in the Italian draft legislation.
Although the Italian legislative proposal is still in draft form, it provides a clear indication on what Italian employers should be prepared for.
