Legislative Decree No. 96/2026 and Pay Transparency: A Comprehensive Guide to Obligations

What is Legislative Decree 96/2026 on pay transparency

Legislative Decree no. 96 of 7 May 2026 (hereinafter the “Decree”), implementing  Directive EU no. 2023/970 on pay transparency, introduces into the Italian framework a series of obligations for employers and rights for employees, aimed at strengthening the effectiveness of the principle of equal pay between men and women through pay transparency tools.

Objectives and definitions: the principle of equal pay

The principle of equal pay establishes that female and male employees are entitled to equal remuneration for the same work or for work of equal value.

In this context, the concept of remuneration is broad and all-encompassing. Within the pay transparency framework, remuneration means any economic benefit granted to the employee, directly or indirectly, by virtue of the employment relationship, and includes, in addition to fixed remuneration, benefits in kind (such as, for example, fringe benefits) and complementary and variable components.

Scope of application

The Decree applies to both public and private employers, without size thresholds except for certain specific obligations, and introduces specific rights for job applicants and employees, both with open-ended and fixed-term employment contracts (including part-time), as well as executive staff. Domestic workers and intermittent employment relationships are expressly excluded.

New obligations for companies: what concretely changes

Pre-employment transparency: indication of salary in job postings

Applicants have the right to receive from the employer:

• initial remuneration or salary band/range for the position, based on objective and gender-neutral criteria,
• the provisions of the national collective bargaining agreement (in Italian parlance the “CCNL”) relevant to the position.

The information must be provided in a way that allows for informed negotiation (e.g. in the job advertisement). In addition, job advertisements/titles must be gender-neutral and the selection process must be non-discriminatory.

Right of access to average pay levels of comparable employees

Each employee has the right to request and receive in writing:

• information concerning individual pay level; and
• the average pay levels, disaggregated by gender, for categories of employees performing the same work or work of equal value.

The request may also be submitted through employee representatives or an equality body; the employer must inform employees annually of the existence of this right and how to exercise it.

Ban on pay secrecy and neutral career progression criteria

1. Ban on pay secrecy: The Decree prohibits employers from including contractual clauses that prevent employees from disclosing information about their remuneration, as such clauses hinder the exercise of the right to equal pay. It is also provided that information obtained regarding others’ remuneration, other than that relating to one’s own position, may not be used for purposes unrelated to the protection of the principle of equal pay.
2. Progression criteria: Career and pay progression must follow defined and documented processes, and not discretionary ones. They must be based on: periodic performance evaluations, experience and seniority, acquisition of new skills and responsibilities, educational or professional requirements. These criteria must be “objective and gender-neutral,” as required by the Decree.

Reversal of the burden of proof: new litigation risks for employers

The Decree introduces a significant change in the national legal framework in the way cases of alleged pay discrimination are handled: the burden of proof shifts to the employer, no longer to the employee. Therefore, the employer will have to prove that there is no discrimination, in the face of a simple indication presented by the person who believes they have been discriminated against (with a consequent potential increase in litigation risk for companies).

Deadlines and reporting: how to prepare periodic reporting obligations for employers with at least 100 employees

The Decree introduces an obligation for employers with at least 100 employees to periodically report gender pay gap data.

The deadlines provided depend on the number of employees in the company:

1. companies with more than 250 employees: by 7 June 2027 and every year,
2. companies with 150 to 249 employees: by 7 June 2027 and every 3 years,
3. companies with 100 to 149 employees: by 7 June 2031 and every 3 years.

The minimum content of the reporting includes, among other things, the average and median pay gap between men and women, the gap in variable pay components, the distribution of employees across salary bands and the gap relating to comparable categories of employees, distinguishing between fixed and variable components.

Employers with fewer than 100 employees may choose to report on a voluntary basis.

The 5% pay gap threshold and the “joint assessment” with trade unions

The “joint assessment” (joint pay assessment, art. 10) is triggered only if all these conditions are met:

1. the reporting shows an average difference of at least 5% within a category,
2. the employer does not justify it with objective and gender-neutral criteria,
3. the employer does not remedy the unjustified difference within 6 months from the date of submission of the report.
4. The assessment must be carried out in cooperation with employee representatives.

Preventive analysis: how to correct gaps before the deadline

From an operational perspective, it is necessary to carry out a preventive analysis of the company’s situation as soon as possible, which should at least:

• reconstruct the job classification system and identify groups of comparable employees based on duties performed, responsibilities, skills required and level of autonomy, for the correct application of the “work of equal value” criterion,
• map the components of remuneration, including fixed pay, variable pay, bonuses, incentives, benefits and any other economically relevant element,
• verify that the criteria for determining and progressing remuneration are formalized, objective, transparent and gender-neutral, as well as free from unjustified discretion,
• prepare a corrective adjustment plan (targeted adjustments, realignments, review of criteria and evaluation systems) to prevent exceeding the 5% threshold, which may trigger the joint pay assessment.

The additional national framework and certification

Equal Opportunities Code (Legislative Decree no. 198/2006) and current legislation

In Italy, the prohibition of pay discrimination (direct and indirect) and the right to equal pay for equal work or work of equal value were already regulated by Legislative Decree no. 198/2006 (Article 28).

Moreover, current legislation provides for national reporting obligations: the biennial report on the situation of male and female employees for companies with more than 50 employees (Article 46 Legislative Decree no. 198/2006, as amended), with electronic submission through the ministerial portal and defined deadlines.

Gender equality certification: contribution and reputational benefits

The national gender equality certification allows private employers an exemption from social security contributions not exceeding 1%, up to a maximum of €50,000 per year (with implementing rules by INPS).

From a reputational standpoint, certification is generally valued in ESG contexts, in tender procedures and in relations with stakeholders and investors; it can also facilitate the structuring of internal processes and performance indicators consistent with equality-oriented governance.

How to integrate national certification with the new obligations under the Decree

Certification is a useful tool for preparing to comply with the new pay transparency obligations, as it:

• requires the adoption of indicators and organizational safeguards in key HR areas (recruitment, professional development, pay equity, corporate culture and governance),
• promotes the structured and documented collection of remuneration data, evaluation criteria and decision-making processes relating to hiring, job classifications, salary increases and career progression, making such information verifiable and consistent with transparency obligations.

In practice: integration takes place through the alignment of job classification and grading systems, evaluation mechanisms and remuneration data (including variable components and benefits) with the indicators and reporting obligations set out by national legislation.

Support from De Luca & Partners: from check-up to compliance

Comprehensive workforce audit: contractual and remuneration analysis

De Luca & Partners supports companies in a legal audit of the workforce aimed at verifying the consistency of contracts, job classifications and remuneration with the principle of equal pay. The analysis makes it possible to identify any unjustified pay gaps, assess the legal sustainability of existing differences and build a solid documentary basis to support company decisions, in light of the transparency, reporting and litigation management obligations introduced by the Decree.

Implementation plan: policy review, training and trade union relations

De Luca & Partners supports companies in defining and implementing a structured compliance plan, aimed at aligning policies and internal procedures with the new obligations on pay transparency. The intervention includes the review of pay determination and progression systems, the set-up of processes for managing employees’ information requests and support in training HR and management. Particular attention is also paid to the management of industrial relations, including in view of possible joint assessments.

Alignment with GDPR and Organization, Management and Control Model: managing new risks
De Luca & Partners assists companies in coordinating pay transparency obligations with personal data protection rules and organizational, management and control models under Legislative Decree no. 231/2001. The activity is aimed at ensuring that information flows and the processing of remuneration data comply with the GDPR and that new risk profiles related to discrimination and litigation are adequately managed within internal control systems, strengthening corporate governance and preventive controls.

Frequently Asked Questions (FAQ)

Can employees know how much their colleagues earn?

Employees may access average remuneration (disaggregated by gender) for comparable categories (same work or work of equal value), as well as their own individual remuneration, through a written request. This does not constitute a general right to access named individual salaries of colleagues.

Does the Decree also apply to small businesses?

Yes, the Decree applies to public and private employers, including SMEs, albeit with differentiated obligations depending on company size. For example, the obligation of periodic reporting is provided, as a minimum standard, for employers with at least 100 employees, without prejudice to the possibility for smaller companies to report on a voluntary basis.

Are further clarifications expected on the content of Legislative Decree No. 96/2026?

The Decree expressly provides for the possibility for the Ministry of Labour to intervene, by 31 December 2026, through the adoption of acts or guidelines aimed at clarifying and specifying the content of Article 4, relating to the notions of “same work” and “work of equal value”. Furthermore, the Decree refers to one or more decrees of the Ministry of Labour and Social Policies, to be adopted within 90 days from its entry into force, in consultation with the Data Protection Authority, which will:

• define the methods for collecting, managing and presenting data for categories of employers with up to 49 employees.

• regulate the methods for collecting and processing employee data, also through digital tools and the acquisition of information from public bodies (INPS, INAIL, INL and other institutional entities),

• identify the data relevant for compliance with the reporting obligations provided by the Decree and the related methods of acquisition,

• provide for technical assistance activities and training initiatives to support employers, define the methods for collecting, managing and presenting data for categories of employers with up to 49 employees.

Case law and insights:

• Salaries: transparency among colleagues becomes mandatory — for equal roles, comparisons between pay slips are now allowed (Corriere Della Sera – Vittorio De Luca, 13 January 2026)

• Pay Equality and Pay Transparency: The New Obligations Introduced by the EU Directive

• Pay Equity and Transparency: EU Directive No. 2023/970