Italy is one of a small number of EU Member States to have transposed the Pay Transparency Directive (EU) 2023/970 on time, with Legislative Decree 96/2026 entering into force on 7 June 2026. The Decree imposes new obligations on employers operating in Italy across pay disclosure, job-candidate information rights, and gender pay gap reporting, with the first substantive reporting deadline falling on 7 June 2027. International companies with Italian operations or employees should treat compliance as an active workstream, not a future planning item.
Italy's Early Transposition in a Fragmented European Landscape
The EU Pay Transparency Directive required all Member States to transpose it into national law by 7 June 2026. In practice, only four jurisdictions met that deadline in full: Slovakia, Italy, Lithuania, and Malta. Italy acted through Legislative Decree 96/2026, which took effect on 7 June 2026 and immediately created enforceable obligations under Italian labour law.
The broader European picture is uneven. The Netherlands, Sweden, the Czech Republic, and Denmark are targeting January 2027 for full implementation. Belgium has requested a six-month extension. Ireland, France, Finland, and Poland have announced delays. Germany and Spain had published no draft legislation as of June 2026. The European Commission has stated it will not grant extensions, and infringement letters are expected in the coming months. For groups with multi-jurisdictional workforces, Italy's on-time status means Italian obligations are live while compliance frameworks in other countries remain in development.
If your group operates across several EU jurisdictions and you need a coordinated view of where obligations are already in force, our analysis of the pay transparency deadline situation in Ireland illustrates the kind of jurisdiction-by-jurisdiction mapping that is now essential for compliance planning.
Who Is Affected in Italy
Legislative Decree 96/2026 applies to employers of all sizes operating in Italy, though the most demanding obligations apply at specific employee thresholds. Crucially, the Directive's framework – now directly embedded in Italian law – is not limited to traditional employment relationships. Employers using platform work arrangements or relying on algorithmic management tools to set or influence pay will need to assess whether those workers fall within scope. Italy's courts, including the Corte di Cassazione, have in recent years developed a robust body of case law on employment presumption, and that jurisprudence will interact with the new transparency rules where the classification of a working relationship is in dispute.
Key categories of affected employer include:
- Companies incorporated in Italy – whether as an S.r.l., S.p.A., or branch of a foreign entity – that have employees working under Italian contracts;
- Foreign employers with Italian-resident workers, even where the employer is not formally registered at the Registro delle Imprese;
- Public-sector bodies, which may also face direct effect obligations under EU law where national rules are found to fall short;
- Employers using third-party staffing or platform arrangements where an employment relationship may be presumed under Italian law.
Key Obligations Under Legislative Decree 96/2026
The Decree translates the Directive's core pillars into Italian law. Employers should note the following operative requirements:
- Pre-employment pay information: Candidates must be provided with information about the pay level or range for a role before or at the point of interview. Pay-history questions directed at candidates are prohibited.
- Pay secrecy clause prohibition: Contractual clauses restricting employees from disclosing or discussing their pay are void under the Decree.
- Employee right to pay information: Workers may request information about their individual pay level and about average pay levels for categories of workers doing the same or equivalent work, broken down by sex.
- Gender pay gap reporting: Employers with 250 or more employees must submit their first pay gap report by 7 June 2027, covering 2026 pay data. The report must be submitted to the competent Italian authority and made available to employee representatives.
- Joint pay assessment: Where a report reveals a gender pay gap exceeding a defined threshold attributable to unjustified factors, employers are required to conduct a joint pay assessment with workers' representatives.
Enforcement of financial claims against non-compliant employers will sit within the existing Italian civil procedure framework, including the decreto ingiuntivo (payment injunction) mechanism for quantified pay claims. Listed companies should also be aware that CONSOB may develop supplementary reporting expectations as ESG disclosure requirements evolve alongside pay transparency rules.
If you need to assess how these obligations apply to your Italian workforce or corporate structure, our team is available to discuss your specific situation. You are welcome to write to us at info@ferrazwhitmore.com or visit our contacts page to arrange a consultation.
Immediate Action Items for International Companies
Given that Legislative Decree 96/2026 is already in force, the following steps warrant immediate attention for any international group with Italian operations:
- Audit recruitment processes: Review job advertisement templates, interview scripts, and offer letter workflows to ensure pay range disclosure is included and salary-history questions are removed.
- Review employment contracts: Identify and remove any contractual provisions that restrict pay disclosure between employees; such clauses are now void and their continued inclusion creates legal and reputational risk.
- Map your Italian headcount: Determine whether any Italian entity or consolidated group meets the 250-employee threshold for the June 2027 reporting obligation. Begin collecting and structuring 2026 pay data now to allow sufficient lead time for analysis.
- Assess platform and non-standard arrangements: Where your business uses platform workers, gig economy contractors, or algorithmic pay-setting tools in Italy, obtain a classification opinion in light of the Corte di Cassazione's employment presumption case law and the new transparency framework.
- Engage employee representatives early: Where works councils or other representative bodies exist, proactive engagement on pay transparency processes is advisable before obligations become contentious.
For groups also restructuring their Italian corporate presence – for instance, converting or consolidating operating entities in anticipation of the reporting perimeter – our corporate law practice in Italy can support that workstream in coordination with employment counsel.
Enforcement Risk and the Commission's Position
The European Commission has been explicit that it will not grant Member States additional time and that infringement proceedings are expected against those that missed the 7 June 2026 deadline. Italy's on-time transposition means Italian rules will not be subject to that challenge, but it also signals that Italian authorities can be expected to enforce the Decree with reference to a complete and tested legal framework rather than transitional guidance.
For public-sector employers in Italy, the risk profile is heightened: where national implementing rules are argued to be deficient, employees and candidates may seek to rely on the direct effect of the Directive itself. Private-sector employers in jurisdictions that have not yet transposed face a different but equally real risk – EU-based employees may begin asserting rights based on direct effect arguments in those countries while Italian-contract workers are already protected by domestic law.
Detailed guidance on available pay transparency compliance services for Italy is available on our practice page, including support for pay audits, reporting structure design, and employment contract review.
Our employment law practitioners in Lisbon and across our European network are ready to advise on the Italian implementation and its interaction with your group's broader compliance obligations. Please contact us at info@ferrazwhitmore.com or through our contacts page.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.