Gender Pay Gap And Pay Transparency Requirements In Italy

Gender pay gap and pay transparency are issues that companies in Italy are facing, and the Italian legislature has implemented specific legal provisions in recent years to reduce workplace disparity.

According to the Italian Code on Equal Opportunities, any direct or indirect discrimination between men and women assigned to "duties of the same value" is forbidden. Based on claims the Italian Gender Equality Body filed, Italian case law has confirmed that an indirect discrimination based on gender may occur if a significant difference in average salary between men and women occurs.

In order to reduce gender gaps in accessing the employment market and building career paths, including better jobs and higher remuneration levels, companies employing more than 50 workers must file a biennial report with the Ministry of Labour on their occupational levels subdivided by gender, detailing the different job positions in each department of their organization, and specifying the overall remuneration paid to males and females.

Courts may order companies to adopt plans to remove gender pay disparity, and employees are entitled to bring actions for damages aimed at addressing alleged pay gaps. As of Jan. 1, 2022, employers can obtain a gender equality certification if they demonstrate that they have taken concrete measures to reduce gender gaps in career paths and compensation. Gender certification offers tax relief for companies and may reduce exposure to individual and collective disputes due to gender wage gaps.

Recent EU Pay Transparency Directive No. 2023/970, aimed at strengthening the application of the principle of equal pay between men and women for work of equal value through pay transparency, fits into this regulatory framework. Under the directive, which Member States must transpose by June 7, 2026, companies will be required to implement pay systems based on transparent, objective, and gender-neutral criteria and to periodically inform work councils. If the pay data shows a gender pay gap of 5% or more that cannot be justified based on gender-neutral criteria, companies will have to consult the work councils and adopt corrective measures.

To enhance readiness for implementation of Italian and EU gender pay gap rules, companies should consider reviewing their salary structures and identifying objective criteria that may justify pay gaps of 5% or more.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.