Equal pay, it's countdown for companies

The countdown has already started: by 7 June 2026 Italy will have to transpose the (EU) directive 2023/970 on pay transparency, which is based on the principle of equal pay for equal work or work of equal value. Its implementation will require a considerable organisational effort, because - in the design of the directive - equal pay stops being a programmatic objective and becomes a structured system of transparency obligations, comparable metrics and sanctioning remedies. These are complex commitments, which make the start of the adjustment path urgent; let us try to go over the main points on which companies will have to act.

First, there is a significant strengthening of the right to information. Workers will be able to request and obtain data on their salary level and average levels, disaggregated by gender, for comparable categories of workers doing the same job or a job of equal value. The directive also affects selection processes. At the recruitment stage, information on the starting salary or the expected salary range for the position will have to be made available, with a strong compression of the space for opaque or discretionary practices. In parallel, the traceability of the criteria used to manage the economic and professional growth of workers will become central. Classification systems, career progressions and remuneration policies will have to be based on neutral and verifiable parameters, capable of withstanding any internal, union or judicial scrutiny.

Then there is the big issue of the measurement of unequal pay. To come prepared on this front, the first step is technical but decisive: the mapping of 'equal value' tasks. Neither the organisational chart nor the traditional job description is sufficient. What is needed is a mapping of activities that enables homogenous comparisons, based on criteria such as skills, responsibilities, complexity and working conditions. It is necessary to define which jobs are of equal value, grouping them into homogeneous bands, because it is on this perimeter that wage differentials will be measured and their justifications assessed. Once the mapping is complete, it will be necessary to compare the remuneration of women and men within each band, using data consistent with the indications of the directive: fixed and variable remuneration, superannuation, bonuses, benefits, part-time work, seniority and any other relevant element.

On the basis of this data, a report will have to be drawn up, to be assessed by the trade unions and bodies to be identified by the national legislator. The assessment will focus on the possible presence of unjustified pay gaps: if a significant difference of more than 5 per cent emerges, which cannot be explained through objective and neutral criteria, it will trigger the obligation for a joint assessment with workers' representatives and the adoption of corrective measures. Even in the presence of a formal justification of the gap, the company would still be required to implement a compensation plan aimed at its progressive reduction. A path that could generate strong tensions in the dialogue with trade unions and staff, especially if large pay gaps were to emerge.

The deadlines for fulfilling reporting obligations will not be the same for everyone. The directive envisages a staggered entry into force according to company size. Employers with at least 250 employees will have to submit the first report by 7 June 2027 and annually thereafter; those with between 150 and 249 employees by the same date, but every three years; companies between 100 and 149 employees will enter the scope later (2031). Below 100 employees, the directive does not impose a generalised reporting obligation, leaving Member States room for discretion for possible extensions.