Italy, How Employers Should Prepare for Decree‑law No.62 & the EU Pay Transparency Rules: 2026 Compliance Checklist

Last updated: May 16, 2026

Pay transparency Italy rules have entered a new era. On April 30, 2026, the Italian Council of Ministers adopted Decree‑Law No.62, the country’s primary vehicle for transposing EU Directive 2023/970 on pay transparency into national law. The Decree introduces mandatory salary‑range disclosure in job adverts, bans employers from requesting salary history, and creates enforceable employee rights to detailed pay information. Combined with gender pay gap reporting thresholds, corrective‑plan obligations for employers above certain workforce sizes, and supplementary measures in the 2026 Budget Law, Italy’s 2026 employment law landscape now demands immediate action from every HR director, general counsel and compliance officer with operations on Italian soil.

Executive Summary & Immediate Actions

The central question for employers is no longer whether pay transparency obligations will arrive in Italy, but how quickly internal processes can be brought into compliance. Decree‑Law No.62 took effect upon publication in the Gazzetta Ufficiale, meaning core obligations, including the salary‑history ban and the requirement to disclose pay ranges in job advertisements, are already operative. The broader reporting and audit obligations stemming from the EU Pay Transparency Directive must be fully implemented by June 7, 2026, the transposition deadline set by Directive 2023/970.

Industry observers expect the practical effect to be felt most sharply in recruitment teams, compensation and benefits departments, and legal functions tasked with updating employment contracts and internal policies. Employers who have not yet begun a structured pay audit face a compressed timeline. The five immediate actions below should be treated as urgent priorities.

• Freeze salary‑history questions. Immediately instruct all recruiters, hiring managers and external recruitment agencies to stop asking candidates about current or previous compensation. Update application forms, interview scripts and third‑party agency contracts within the next 14 days.
• Audit job advertisements. Every live vacancy posting must include a pay range or reference to the applicable collective‑bargaining agreement (CCNL) pay band. Review all adverts on company websites, job boards and agency listings within 30 days.
• Launch a pay‑data collection exercise. Instruct payroll and HR to compile a complete dataset, base salary, variable pay, bonuses, benefits and hours, segmented by gender, job category and contract type. Target completion within 60 days.
• Prepare an employee‑information response protocol. Employees now have a right to request information on their individual pay level and the average pay levels by gender for workers performing the same work or work of equal value. Draft a standard response template and train HR within 30 days.
• Engage legal counsel for gap analysis. Commission a full legal review of current employment contracts, internal pay policies, promotion criteria and collective‑bargaining interactions against Decree‑Law No.62 and EU Directive 2023/970 requirements. Target completion within 90 days.

For a comprehensive overview of Italy’s pay transparency employer compliance obligations, the sections below break down every requirement, reporting threshold, and practical step.

Pay Transparency Italy: Scope, Timing & Who Is Covered

Which employers are in scope?

The obligations introduced by Decree‑Law No.62 and EU Directive 2023/970 apply broadly. Every employer operating in Italy, whether a domestic company, an Italian subsidiary of a multinational, or a public‑sector entity, is subject to the core transparency rules on recruitment, salary‑history prohibition, and employee information rights regardless of workforce size. The more onerous reporting and corrective‑plan obligations are tiered by headcount, as outlined in the Directive:

• All employers (regardless of size): must include pay ranges in job adverts, refrain from asking about salary history, and respond to employee pay‑information requests.
• Employers with 100 or more employees: must prepare and publish periodic gender pay gap reports.
• Employers with 250 or more employees: must report annually once the reporting regime is fully phased in.
• Employers with 100–249 employees: must report every three years under the Directive’s phased schedule.

Both private‑ and public‑sector employers are covered. There is no sector exemption. Employers already subject to Italy’s existing biennial gender pay reporting requirements under Law No.162/2021 (which applies to companies with more than 50 employees) should expect the Decree‑Law No.62 framework to supplement, and in some areas replace, those existing obligations.

Key dates & timeline

Decree‑Law No.62: Employer Obligations Explained

Decree‑Law No.62 is the centrepiece of Italy’s implementation of pay transparency rules. The obligations it creates can be grouped into three categories: recruitment and advertising, employee information rights, and gender pay gap triggers. Each imposes concrete tasks on decree law 62 employers.

Recruitment & job advert rules

Under the Decree, all job advertisements must disclose the initial pay level or pay range for the position, based either on the applicable CCNL pay band or the employer’s internal compensation framework. The disclosure must be provided before the employment relationship is discussed with a candidate, in practice, this means the information must appear in the job posting itself, not merely at the offer stage.

Equally significant is the prohibition on salary‑history enquiries. Employers, and any agents acting on their behalf, may not ask applicants about their current or previous remuneration. The prohibition covers direct questions in interviews, fields on application forms, and requests routed through recruitment agencies. The policy rationale, drawn directly from Article 5 of Directive 2023/970, is to break the cycle whereby historical pay gaps follow workers from one employer to the next.

Employers should also ensure that recruitment agencies under contract are formally notified of these prohibitions. Updating agency agreements with a pay transparency compliance clause is a prudent early step.

Employee right to information

Workers have the right to request, and receive in writing, information about their individual pay level and the average pay levels, broken down by gender, for categories of workers performing the same work or work of equal value. Employers must respond within a reasonable period, and the Directive specifies a maximum of two months. Decree‑Law No.62 adopts this standard.

The information provided must include not only base salary but all variable components: bonuses, overtime rates, benefits in kind, and supplementary allowances. Employers should anticipate that these requests will become routine, particularly from employee representatives and trade unions. A standardised response template, discussed in the HR processes section below, is essential.

Pay gap trigger & corrective plans

Where gender pay gap reporting reveals a difference of 5 per cent or more in any category of workers, and the employer cannot justify the gap by objective, gender‑neutral factors, the employer must undertake a joint pay assessment with worker representatives. This assessment must identify root causes, develop corrective measures, and set a timeline for remediation. The 5 per cent threshold is drawn directly from Article 10 of Directive 2023/970.

EU Pay Transparency Directive Italy: Reporting & Documentation Obligations

While Decree‑Law No.62 provides the national legal framework, the underlying EU Pay Transparency Directive 2023/970 sets the minimum floor for all Member States. Employers operating across multiple EU jurisdictions should note that Italy’s implementing measures may exceed the Directive’s minimum requirements in certain respects. Understanding the interaction between the two instruments is essential for compliance.

Reporting templates & minimum dataset required

The Directive requires employers to report on a defined set of pay metrics, segmented by gender and by category of workers performing the same work or work of equal value. The minimum dataset includes:

• Gender pay gap in ordinary basic salary and in complementary or variable components
• Median gender pay gap in ordinary basic salary and in complementary or variable components
• Proportion of female and male workers in each quartile pay band
• Proportion of female and male workers receiving complementary or variable components

Employers should begin assembling this data now, even before the formal reporting window opens. Early indications suggest that the Italian implementing regulations will require reports to be submitted to the national equality body, with public disclosure for employers above the applicable threshold.

Interaction between national Decree‑Law and EU Directive

Decree‑Law No.62 implements the Directive but also builds on Italy’s pre‑existing reporting framework under Law No.162/2021. The likely practical effect will be a consolidated reporting obligation: employers already filing biennial reports will transition to the new format and thresholds, while employers newly brought into scope (100–249 employees) will have until 2031 for their first triennial report. Employers with 250 or more employees face the tightest timeline, with the first annual report due by June 7, 2027.

Italy pay gap reporting obligations by employer size

Companies already familiar with Italy’s evolving smart working rules will recognise the pattern: EU‑level frameworks are being layered onto Italy’s existing labour law infrastructure, creating a hybrid compliance environment that requires careful mapping of both sources.

How to Run a Pay Audit in Italy: Step‑by‑Step

For employers approaching a pay audit for the first time, or upgrading an existing exercise to meet the new standards, the following eight‑step method provides a structured framework aligned with both Decree‑Law No.62 and the Directive’s requirements.

Step 1, Data collection. Compile a complete pay dataset from payroll and HR systems. At a minimum, capture: employee ID, gender, job title, job grade or level, department, contract type (full‑time, part‑time, fixed‑term), base annual salary, variable pay (bonuses, commissions), overtime, benefits in kind, supplementary allowances, and total hours worked. Use a standardised spreadsheet with consistent column headers.

Step 2, Job matching and evaluation. Group employees into categories of “same work” or “work of equal value.” This requires a job‑evaluation methodology, whether point‑factor, whole‑job ranking, or an existing CCNL classification. Document the criteria used and ensure they are objective and gender‑neutral.

Step 3, Statistical analysis. For each job category, calculate the mean and median gender pay gap in base salary and in total remuneration. Where resources permit, run a regression analysis to isolate the explained portion of any gap (tenure, qualifications, performance ratings) from the unexplained portion. A gap exceeding 5 per cent that cannot be justified by objective factors triggers the corrective‑plan obligation.

Step 4, Adjustments and corrective plan design. Where an unjustified gap is identified, design specific corrective measures: targeted salary adjustments, revised pay‑band structures, promotion pathway reforms, or benefits recalibration. Assign each measure an owner, a budget and a deadline.

Step 5, Consultation with worker representatives. The Directive requires that the joint pay assessment be conducted in cooperation with worker representatives. In Italy, this typically means engaging the RSU (rappresentanza sindacale unitaria) or, where applicable, the relevant trade union. Document all consultation steps.

Step 6, Documentation and record retention. Retain all underlying data, methodology documents, statistical outputs, corrective plans, and consultation records. The Directive does not prescribe a specific retention period, but industry observers expect Italian implementing guidance to require retention for at least five years, consistent with general employment‑record retention practice.

Step 7, Public disclosure. Employers above the reporting threshold must publish their gender pay gap data. The format and publication channel will be specified in Italian implementing regulations; early indications suggest submission to the national equality body and publication on the employer’s website.

Step 8, Audit governance and update cycle. Establish a recurring audit cycle, annual for employers with 250+ employees, triennial for 100–249, with clear ownership (typically a joint HR‑Legal‑Finance committee). Schedule the next audit before the reporting deadline to allow time for remediation.

Sample pay audit data columns:

Updating HR Processes, Contracts & Policies

Job adverts & recruitment templates

Every job advertisement must now include pay‑range information. Below is a model wording that can be adapted:

“This position offers a gross annual salary range of €[X] – €[Y], in line with [CCNL / company pay band level]. The final offer will reflect the candidate’s experience, qualifications and the specific responsibilities of the role.”

Employment contract clauses

Review all template employment contracts and remove any clause that requires the employee to disclose prior salary or that conditions the offer on salary‑history verification. Consider adding a transparency clause, such as:

“The Company determines compensation on the basis of objective, gender‑neutral criteria including role scope, required qualifications, experience, and the applicable CCNL classification. Employees may request information about their pay level and average pay levels by gender for comparable roles at any time.”

Internal pay policy & promotion processes

Employers should formalise and document the criteria used for pay decisions, pay progression and promotions. These criteria must be objective and gender‑neutral, and they must be accessible to employees upon request. A short internal policy excerpt might read:

“Pay and promotion decisions at [Company] are based on [listed criteria: job grade, performance assessment score, tenure, market benchmarking data]. These criteria are reviewed annually and are available to all employees via [HR portal / intranet]. Employees may direct questions about pay criteria to [HR contact].”

For in‑house counsel navigating these updates, the employment law practice area on Global Law Experts provides direct access to specialist advisors in Italy and across Europe.

Sanctions, Inspections & Litigation Risks

Non‑compliance with pay transparency Italy rules carries multiple enforcement risks. The Directive requires Member States to establish effective, proportionate and dissuasive penalties. In Italy, enforcement is expected to operate through several channels:

• Administrative fines. The labour inspectorate (Ispettorato Nazionale del Lavoro) can impose administrative penalties for failure to publish pay ranges in adverts, failure to respond to employee information requests, and failure to submit required gender pay gap reports.
• Corrective orders. Inspectors can order employers to produce missing reports, amend non‑compliant adverts, or implement corrective pay plans within a specified period.
• Civil claims. Employees who believe they have suffered pay discrimination can bring civil claims. The Directive shifts the burden of proof: once an employee demonstrates a prima facie case of pay discrimination, the employer must prove that no breach occurred. This reversal significantly increases litigation risk.
• Collective claims. Worker representatives and equality bodies can bring claims on behalf of groups of employees, amplifying the potential financial and reputational exposure.

Mitigation steps include: maintaining a complete audit trail for all pay decisions; conducting proactive pay audits before any complaint arises; training managers on the new rules; and retaining documented evidence of objective, gender‑neutral criteria used in pay and promotion decisions.

2026 Budget Law Measures: Part‑Time Requests & Related Employee Rights

Alongside Decree‑Law No.62, Italy’s 2026 Budget Law introduces supplementary employer obligations that interact with the broader pay transparency framework. Notably, the Budget Law expands the right of employees to request conversion to part‑time work in certain circumstances, including for caregiving responsibilities.

Employers must now respond to such requests within a defined procedural timeframe, provide written reasons for any refusal, and document the decision. The connection to pay transparency is direct: part‑time conversion decisions can create or widen gender pay gaps if they are not managed consistently and documented objectively. Employers should integrate part‑time request handling into their broader pay‑equity monitoring framework to ensure that part‑time conversion patterns are captured in gender pay gap analyses.

The Budget Law also reinforces parental leave protections and non‑discrimination provisions that complement the transparency framework. HR teams should review these measures alongside the Decree‑Law obligations to ensure a coherent internal compliance structure. Italy’s 2026 Budget Law, employee rights to part‑time work is a topic that warrants dedicated analysis for employers managing workforce‑flexibility programmes.

Employer Compliance Checklist Italy: 90/180/365‑Day Roadmap

The following roadmap provides a structured implementation plan. Assign each item to a responsible owner and track completion against the deadlines indicated.

Next 30 days

• HR / Recruitment: Remove salary‑history questions from all application forms, interview scripts and agency contracts
• HR / Recruitment: Add pay‑range disclosures to all active job advertisements
• Legal: Draft employee pay‑information response template and brief HR on response protocol
• Legal: Issue compliance notice to all external recruitment agencies

Next 90 days

• HR / Payroll: Complete pay‑data collection exercise (full dataset by gender, job category, contract type)
• Legal: Complete gap analysis of employment contracts, policies and promotion criteria against Decree‑Law No.62
• Legal / HR: Update template employment contracts (remove salary‑history clauses; add transparency provisions)
• HR: Formalise and publish internal pay‑decision criteria document

Next 12 months

• HR / Finance / Legal: Complete first full pay audit (statistical analysis, gap identification, corrective plan if required)
• HR: Establish recurring audit governance cycle (annual or triennial depending on workforce size)
• Legal: Prepare first gender pay gap report (employers with 250+ employees; due by June 7, 2027)
• HR: Train all hiring managers and line managers on transparency obligations, information‑request handling and non‑retaliation
• Legal: Conduct annual review of compliance with evolving Italian implementing regulations and any further ministerial guidance

Employers seeking specialist guidance on implementation can find an employment lawyer through the Global Law Experts directory, or browse the Italy lawyer directory for jurisdiction‑specific expertise.

Conclusion & Recommended Next Steps

Pay transparency Italy obligations are no longer prospective, they are operative. Decree‑Law No.62 and the EU Pay Transparency Directive together create a binding framework that touches every stage of the employment relationship, from the job advert to the annual pay report. Employers who act now to audit pay data, update recruitment processes, and build internal transparency infrastructure will be best positioned to manage compliance risk and avoid enforcement action. Those who delay face compressed timelines, heightened litigation exposure, and reputational consequences. The time to begin is today.

Sources

1. EU Directive 2023/970 (Pay Transparency), EUR‑Lex
2. Ministero del Lavoro e delle Politiche Sociali, Press Release on Pay Transparency
3. Deloitte Italy, EU Pay Transparency Directive Implementation Guide
4. PwC Italy, EU Pay Transparency Directive
5. Trusaic, Global Pay Transparency Center: Italy
6. Syndio, Italy Pay Gap Reporting Guide