Italy: European pay transparency directive, a major step forward for businesses

Featured image of the article Italy: European pay transparency directive, a major step forward for businesses
Italy’s labour market continues to suffer from limited pay transparency and a persistent gender pay gap. The forthcoming implementation of the EU pay transparency directive — still awaiting transposition — could help address these issues, provided it drives a genuine cultural shift.
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With only a few months remaining before the deadline to transpose the EU pay transparency directive — a reform set to significantly impact employers — mind RH is publishing a series of country overviews examining how its implementation will affect key European markets and how businesses are preparing.

The EU pay transparency directive could be a minor revolution in Italy, imposing new practices on companies. At present, however, the country seems far from ready; the decree-law transposing the directive is not on the government’s agenda this autumn and is not expected to come into force until 2026. Rome has until 7 June to transpose the directive. In addition, the Italian economic fabric is overwhelmingly composed of SMEs, which are ill-equipped to cope with the new obligations.

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