Labour, advertisements must indicate starting pay

Equal pay must correspond to equal work. And transparency, in accordance with this general principle, also extends in some respects to the candidates during the selection phase.

This was highlighted by the Ministry of Labour, explaining the scheme of legislative decree transposing Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023, which aims to strengthen the application of the principle of equal pay for men and women for equal work or work of equal value, through pay transparency and its enforcement mechanisms. The measure was approved by the Council of Ministers on 5 February in preliminary examination.

The measure aims at eliminating the gender pay gap through greater transparency and protective instruments. It applies to public and private employers and concerns, with some exclusions, employees (including managers and fixed-term contracts), extending, as mentioned, in some respects also to candidates during the selection phase. Job advertisements will have to indicate the expected starting salary or range. Employers will be prohibited from asking candidates about their past salaries.

In compliance with privacy legislation, workers have the right to know the criteria used to determine their salary and the average salary levels of their colleagues doing the same job, broken down by gender. Companies can provide this information proactively.

The decree then clarifies the concepts of 'same work' and 'work of equal value', basing them on objective and gender-neutral criteria. It is stipulated that collective bargaining is the main reference for job and pay classification. If an unjustified gender pay gap of 5% or more emerges, the employer must justify it and initiate a joint assessment with trade union representatives and the Labour Inspectorate to take corrective measures.