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Pay transparency and equal pay: what Legislative Decree 96/2026 provides and how to comply

The issue of pay transparency has become central for Italian companies following Legislative Decree No. 96 of 7 May 2026, which transposes Directive (EU) 2023/970 on equal pay for women and men. The legislation introduces specific obligations for employers, from the recruitment stage through to the management of internal pay information.

For companies, compliance does not simply mean avoiding penalties, but building a pay system that is consistent, documented and defensible in the event of an inspection. Frareg has developed a dedicated consultancy service that supports companies throughout every stage of regulatory compliance.

The regulatory framework: from EU Directive 2023/970 to Legislative Decree 96/2026

Directive (EU) 2023/970 was introduced with the aim of strengthening the principle of equal pay for female and male workers performing the same work or work of equal value. The European legislature required Member States to introduce practical tools to make pay more transparent and combat unjustified pay disparities.

Legislative Decree No. 96 of 7 May 2026 incorporates these principles into Italian law, requiring companies to adopt objective, common and gender-neutral assessment criteria to compare job positions and justify any pay differences.

Methodological note: the content concerning the individual articles and the implementation deadlines of the decree must be checked against the text published in the Official Gazette and on Normattiva, as this document reflects the general framework of the legislation as described in Frareg’s service proposal.

The objectives of equal pay legislation

The purpose of the legislation is twofold: on the one hand, to guarantee workers the right to know the pay criteria and principles applied by the company and, on the other, to provide businesses with a tool to prevent disputes and reputational issues connected with the gender pay gap.

The key elements of the reform include:

  • the adoption of objective job evaluation criteria free from discriminatory elements;
  • transparency during recruitment and hiring;
  • the abolition of contractual clauses prohibiting employees from disclosing their pay;
  • the structured management of pay information provided to employees;
  • periodic reporting obligations for larger companies.

Company obligations: how to structure the compliance process

Compliance with the new regulatory framework requires a structured process, beginning with an analysis of the company’s organisation and ending with the formalisation of internal documents and procedures.

Workforce size and organisational assessment

The first step is to map the size and quantitative composition of the workforce. The company’s number of employees directly affects the scope of the applicable obligations: not all businesses are subject to the same requirements, and understanding the relevant size category is essential to tailor the intervention correctly.

At the same time, the company’s level of organisational maturity in relation to pay must be assessed, including the existence of job descriptions, written policies, procedures, forms and operating instructions already in use.

Pre-employment stage and job advertisements

An area that is often underestimated concerns the management of the stages preceding employment. The legislation requires attention to:

  • gender-neutral wording in recruitment advertisements;
  • the correct indication of the pay or pay range envisaged for the position;
  • explicit references to the applicable National Collective Labour Agreement (CCNL) and the proposed classification level;
  • any corrective action required for recruitment tools already in use.

Individual employment contracts and pay secrecy clauses

Individual employment contract templates must be reviewed to remove any pay secrecy clauses, which are deemed null and void under the new legislation. Employees must be free to disclose information about their own pay, without contractual restrictions limiting transparency.

Employee information and gender-neutral assessment criteria

This is the core of the compliance process. Companies must properly manage the information provided to employees and assess existing pay gaps between the various internal professional categories.

Comparable positions must be assessed using objective, common and gender-neutral assessment criteria that can transparently justify any pay differences between employees performing the same role or roles of equal value.

Pay progression criteria for companies with 50 or more employees

For companies reaching the threshold of 50 employees, the legislation requires the company to define, formally document and make available to employees the criteria it uses for staff pay progression.

Periodic reporting and consultation with trade union representatives

Larger companies, identified according to the size of their workforce, are required to carry out periodic reporting on seven different parameters, mainly describing pay gaps and certain statistical values relating to the male and female employee populations.

Frareg’s consultancy service

Frareg supports companies throughout every stage of compliance with Legislative Decree 96/2026 through a process that includes:

  • a preliminary workforce size and organisational assessment;
  • an analysis of the maturity of existing pay-related documentation;
  • a review of recruitment advertisements and pre-employment procedures;
  • a review of individual employment contracts to remove pay secrecy clauses;
  • management of the information provided to employees;
  • joint definition with the company of objective, common and gender-neutral criteria for assessing the value of personnel;
  • creation of a calculation model applying the criteria to the existing workforce, highlighting any critical issues;
  • creation of a pay policy document covering both the pre-employment stage and the assessment of the value of existing personnel;
  • development of pay progression criteria for companies with 50 or more employees;
  • development of pay progression criteria for companies with 100 or more employees;
  • support in relations with trade union representatives for larger companies with 100 or more employees.

Frareg’s approach is designed to be practical and sustainable: not a purely formal compliance exercise, but a process that strengthens the company’s organisational structure and its ability to manage pay policies transparently.

Frequently asked questions

What does Legislative Decree 96/2026 provide regarding pay transparency?

The decree transposes Directive (EU) 2023/970 and requires companies to adopt objective, common and gender-neutral assessment criteria to compare job positions and guarantee equal pay for employees performing the same role or roles of equal value.

Are pay secrecy clauses still valid?

No. Contractual clauses prohibiting employees from disclosing their own pay are deemed null and void and must be removed from individual employment contract templates.

What obligations apply to companies with 50 or more employees?

These companies are subject to the full application of all general transparency requirements relating to the pre-selection stage and the definition of staff assessment criteria. They must also define staff pay progression criteria and formalise them in a written document made available to the company workforce.

When is consultation with trade union representatives required?

For larger companies with more than 100 weighted units, if pay gaps exceeding 5% emerge, cannot be justified on the basis of the adopted assessment criteria and are not remedied within six months, the company must jointly assess those pay gaps with trade union representatives.

How should a job advertisement be written to comply with the new legislation?

It must use gender-neutral wording, indicate the expected pay or pay range and include references to the applicable National Collective Labour Agreement (CCNL) and the proposed classification level.

What does Frareg’s consultancy service include?

Frareg supports companies in verifying their compliance with the various requirements of the legislation, providing comprehensive assistance throughout all necessary and potential stages relating to pre-contractual and contractual obligations in dealings with candidates and employees, as well as with the institutional bodies and trade unions involved.