Italy’s Transposition of EU Directive 2023/970: Current Status Overview

Introduction and Directive Overview

Italy, like all Member States, is obliged to transpose the pay transparency directive into its domestic law by the June 2026. The directive’s goal is to eliminate gender pay discrimination through transparency obligations, protecting the right to equal pay and banning sex-based pay discrimination [1] [2]. In Italy – which currently ranks low in gender pay equality indices – the transposition is seen as a crucial step to address persistent gender pay gaps (Italy is 87th in the World Economic Forum’s 2024 Global Gender Gap Index) [3]. Despite existing Italian measures (e.g. the Code of Equal Opportunities and initiatives like the gender equality certification), significant pay disparities remain [3]. The government has thus emphasised the importance of fully implementing Directive 2023/970 to close this gap and meet EU objectives.

Legislative Framework for Transposition in Italy

Italy’s approach to EU directives: Italy typically transposes EU directives via a “Legge di Delegazione Europea” (European Delegation Law) that delegates legislative power to the Government to issue implementing decrees. For Directive 2023/970, the relevant enabling legislation is the European Delegation Law 2022–2023, which was approved by Parliament in early 2024. This law was published as Law No. 15 of 21 February 2024 (in Gazzetta Ufficiale No. 46/2024) [4] and entered into force on 10 March 2024 [5].

Delegation to the Government: Article 9 of Law 15/2024 specifically delegates to the Government the task of transposing Directive 2023/970 [6]. The law authorizes the government to adopt one or more legislative decrees to implement the directive, and it sets guiding principles and criteria for this transposition. The delegation must be exercised by the Government by early 2026 (approximately by February 2026, in line with the directive’s June 2026 deadline and Italy’s standard rules on delegation [1] [6]).

Guiding principles in Article 9: Law 15/2024 not only grants authority to transpose the directive, but also lays down specific principles and criteria to steer the drafting of the implementing decrees [7]. These were added by Parliament to ensure the Italian legislation fully meets the directive’s objectives. In particular, Article 9 directs the Government to:

Complete and correct implementation: Modify existing Italian laws as needed to ensure full and exact application of Directive 2023/970, taking into account the directive’s recitals, in line with the EU Gender Equality Strategy 2020–2025, and with respect for the autonomy of national social partners [8]. This means any legislative gaps must be filled so that the principle of equal pay is upheld in practice (Italy must align its laws to the directive’s detailed provisions and spirit).
Methodology for valuing work: Introduce provisions to identify tools or methodologies to evaluate and compare the value of work, with the involvement of social partners (e.g. unions and employers) in defining job value, in order to prevent interpretative doubts or application uncertainties [9]. This reflects the directive’s emphasis that pay comparisons should be based on objective, gender-neutral criteria for work of equal value [10]. In practice, Italy’s transposition should establish clear criteria or guidelines to assess when different jobs are of equal value, so that employers’ pay systems can be checked for bias.
Enhanced pay transparency measures: Reinforce pay transparency mechanisms by extending the scope of obligations on access to and communication of pay gap information to a broader set of stakeholders, and consider ways to automate data collection [11]. The law specifically calls for possibly widening the “audience” or coverage of pay transparency obligations, and for exploring the automatic retrieval of required pay data from existing administrative databases (such as payroll data already regularly reported by employers to social security agencies) [11]. The aim is to reduce administrative burdens on companies while ensuring a wide impact of transparency measures. In essence, Italy may go beyond the directive’s minimum scope - for example, by including more employers or publishing more comprehensive gender pay gap information, leveraging existing data flows to do so efficiently.

These guiding criteria (1, 2, 3) in Article 9 of the delegation law were introduced to ensure that Italy’s implementing decrees not only copy the minimum EU requirements but also integrate them coherently into Italy’s legal framework and existing gender equality policies [8] [11]. Notably, Parliament added Article 9 during the bill’s review - the government’s original draft did not contain these detailed criteria, and thus the technical financial report (Relazione Tecnica) initially provided did not analyze this article (since it was a late addition by the Chamber) [12].

Parliamentary Dossiers and Preparatory Acts

Both houses of the Italian Parliament prepared extensive documentation to accompany the transposition process. The Chamber of Deputies (Camera dei Deputati) and the Senate of the Republic (Senato della Repubblica) research offices collaborated on analytical dossiers explaining Directive 2023/970 and its implementation needs as part of the Delegation Law:

Delegation Law Dossier: A joint Senate-Chamber dossier (Senate Servizio Studi Dossier No. 143/2 and Camera Dossier No. 163/2, January 2024) was issued during examination of the Delegation Law. It outlines the content of Directive 2023/970 and the rationale for Article 9 of Law 15/2024 [6] [13]. The dossier confirms the directive’s transposition deadline of 7 June 2026 and summarizes its purpose (“strengthening the application of equal pay through pay transparency”) [13]. It also reproduces the exact text of the delegation criteria in Article 9 and provides commentary on each point [13]. For example, the dossier highlights that Italy should consider its EU Gender Strategy commitments and involve social partners when defining “work of equal value”, and it emphasizes using existing data (e.g. payroll reports) to fulfill new reporting duties [13].
“Legislazione e politiche di genere” Report: In March 2025, the Chamber’s Research Service published a comprehensive report titled “Legislazione e politiche di genere - Terza Edizione” (No. 17, March 2025) [13]. This document (over 120 pages) reviews all gender-related legislation and policies, including a section on equal pay and the Pay Transparency Directive’s status. It reiterates that Italy must implement Directive 2023/970 by June 2026 and recaps the delegation given to the Government via Law 15/2024 [13]. Importantly, it places the directive in context with Italy’s existing laws and recent initiatives on gender equality (discussed below). This kind of official commentary helps Parliamentarians understand the implications of the new EU rules and monitor the Government’s progress in transposing them.

In parliamentary committee discussions, officials also addressed the implications and objectives of the directive. The Budget Committees (in charge of financial review, involving the Ministry of Economy and Finance) scrutinized potential costs of new obligations. For instance, the Senate’s budget analysis noted that Article 28 of Directive 2023/970 will require Italy to designate a national body to monitor and support the implementation of pay transparency measures [14]. The Government indicated that Italy already has institutions that could take on this monitoring role (likely the National Equality Councils or existing equality bodies), and that fulfilling the directive’s monitoring and reporting duties in the public sector should be achievable within current administrative operations [15] [12]. The Government’s representative assured Parliament that any financial impact on public administrations (for example, costs of enhanced reporting or training) would be minimal or handled under existing budgets [15]. If additional expenses do arise, Italy can use the dedicated fund for EU law implementation to cover them, thus ensuring the transposition will not strain public finances [16]. This dialogue, documented in the parliamentary records, shows the Ministry of Economy and Finance’s involvement in vetting the directive’s implementation to maintain fiscal neutrality.

Current National Measures and Preparatory Steps

While the formal transposition (the legislative decree) is still pending, Italy has been preparing the ground by reviewing and leveraging existing gender equality measures. In many respects, Italy’s current laws already move in the direction of the Pay Transparency Directive, and these will form part of the compliance strategy:

Biennial Gender Pay Report: Italy’s Code of Equal Opportunities (Legislative Decree 198/2006) was amended in 2021 (Law 162/2021) to strengthen gender pay transparency. Since 2022, companies with over 50 employees, public or private, must submit a detailed biennial report on their workforce composition and pay, including any gender pay differentials [17] [18]. (Previously, this obligation applied only to companies >100 employees, but the threshold was lowered to 50 by Law 162/2021 [181.) This report is filed with the Ministry of Labour and is intended to highlight gender gaps in each firm [17]. Notably, the EU directive initially mandates pay gap reporting for larger employers (e.g. companies with 100+ workers) in a phased manner, but Italy has already imposed reporting on a broader range of firms (50+ employees), which goes beyond the EU minimum [13]. Italy’s transposition will likely continue this approach, using the existing biennial report mechanism to satisfy the directive’s transparency requirements. Indeed, one of the delegation law criteria (criterion (3) above) explicitly calls for expanding the audience of these obligations and possibly using existing administrative data flows to automate the reporting [11]. Italy’s Social Security institute (INPS) already receives monthly payroll data (UniEMens reports); under transposition, such data might be aggregated to compute gender pay gap reports with less burden on companies [11].
Public Procurement Requirements: As part of Italy’s National Recovery and Resilience Plan (PNRR) initiatives, even some smaller companies are subject to gender reporting when benefiting from public funds. Companies with at least 15 employees that participate in public tenders financed by PNRR funds must submit a report on the gender situation in their staff (comparable in content to the biennial report) or else face exclusion from the tender [18]. This measure, introduced via PNRR-related regulations, is another transparency tool that precedes the EU directive. It aligns with the directive’s spirit by extending pay-gap disclosure to firms involved in public contracts. The transposition may incorporate such provisions or use them as a model for broader obligations.
Gender Equality Certification: Italy has launched a voluntary Gender Equality Certification program, as envisioned by the PNRR and established from January 2022 [13]. This certification (based on UNI/PdR 125:2022 guidelines) awards a credential to companies that demonstrate substantial commitments to gender parity (in recruitment, career progression, equal pay, etc.). Certified firms receive benefits such as scoring advantages in public tenders and social security contribution rebates [13]. While not mandated by the EU directive, this scheme is a “soft law” complement encouraging employers to proactively reduce gender gaps. The EU directive does encourage positive actions (it mentions incentives and action plans for employers with gaps), so Italy’s existing certification system and incentive funds (a dedicated fund was set up by Budget Law 2021 to support this certification [13]) will likely be referenced as part of the transposition strategy. It represents Italy’s broader policy context into which the directive’s requirements will be integrated.
Public Sector Gender Policies: Italy has also taken steps within the public sector to promote equal opportunity, anticipating some requirements of the directive. Notably, Decree-Law 36/2022 obliges public administrations to adopt measures ensuring gender equality in career advancement (e.g. removing barriers for the under-represented gender in promotions) [19] [13]. In October 2022, the Department of Public Administration issued Guidelines on Gender Equality in Public Employment, guiding ministries and agencies on how to implement these measures [19] [13]. These efforts dovetail with the directive’s broader goal of closing gender gaps in all workplaces, and Italy will use these frameworks to comply with any public-sector aspects of the EU rules. For example, if the directive’s pay transparency provisions apply to public employers, Italy can show that mechanisms are already in place (and will be updated as necessary).
Awareness and Reporting: The Ministry of Labour and the Department for Equal Opportunities have been raising awareness of the forthcoming changes. A National Report on the Implementation of Directive 2023/970 was prepared (in late 2023) by the Ministry of Labour, reviewing Italian legislation against the directive’s provisions and outlining the planned adjustments [20]. This report (referenced in parliamentary documents) underlines Italy’s commitment to the directive’s objectives and identifies existing instruments, such as the biennial report and certification, as key tools in achieving pay transparency [20] [21]. It essentially serves as a preparatory act, ensuring that lawmakers and stakeholders share a common understanding of what the directive requires and how Italy intends to meet those requirements. Furthermore, Italy regularly reports to international bodies (EU and ILO) on gender pay equity; for instance, in its report on ILO Convention No. 100 (Equal Remuneration), the government highlighted Directive 2023/970 and the steps being taken to implement it. Such commentary by public officials provides insight into Italy’s objectives: namely, to leverage the directive to bolster enforcement of equal pay, increase employer accountability through transparency, and ultimately reduce the gender pay gap in a measurable way.

In summary, Italy is laying the groundwork for transposition by aligning current measures with the directive and identifying what new rules or institutional arrangements are needed. Both the Ministry of Labour and the Ministry of Economy/Finance are involved in this preparatory phase - the former focusing on policy substance and stakeholder engagement, the latter on resource allocation and impact assessment [15]. No substantial conflicts have emerged, as many directive provisions reinforce trends in Italian policy (e.g. transparency, data-driven monitoring, and social partner involvement).

Next Steps and Current Status (April 2025)

As of April 2025, Italy has not yet enacted the final transposing legislative decree for Directive 2023/970. The current status can be summarized as follows:

Enabling law in force: The necessary authority for transposition has been granted to the Government via Law 15/2024 [4]. This law provides the legal basis and guidelines for drafting the implementation decrees. It is a crucial milestone, as it formally commits Italy to implement the directive and frames how to do so.
Drafting of legislative decree: The actual implementing decree (or decrees) is expected to be drafted by the Government (led by the Ministry of Labour in coordination with the Ministry of Economy and Finance, and the Department for Equal Opportunities). At present, no draft has been publicly released. Typically, such drafts may be circulated in preliminary form to social partners (unions and employer associations) or relevant parliamentary committees for feedback before final approval. We anticipate that in late 2025 or early 2026, a draft legislative decree will be submitted to Parliament for the required advisory opinions - this is the normal procedure under Law 234/2012 for EU directive transpositions [6]. The Government must exercise the delegation by the set deadline (likely February 2026), to ensure the laws are in place by June 2026.
Parliamentary oversight: Parliament will continue to oversee the process. The Chamber’s and Senate’s EU Affairs Committees (and possibly Labor Committees) will examine the draft decree when presented, checking it against the mandate in Law 15/2024. They will verify that the decree respects the principles (1, 2, 3) outlined above. Given that those principles were detailed, Parliament has clearly signaled what the decree should contain - for example, concrete measures to broaden pay transparency and involve social partners. If the draft decree deviates or is insufficient, Parliament can request adjustments in its opinion. Additionally, the Budget Committees will review the draft for financial sustainability, echoing the concerns already raised and addressed during the delegation law phase [15].
Designation of a monitoring body: One specific task before completion of transposition will be to designate or establish the national enforcement and monitoring body as required by the directive (Article 28 of Directive 2023/970). Italy is expected to assign this role to an existing institution. Likely candidates are the National Equality Councillor (Consigliera Nazionale di Parità) - an official tasked with promoting equal opportunities - or a coordination of agencies (perhaps involving INAPP or ISTAT for data, and the Labour Inspectorate for enforcement). The parliamentary dossier notes this requirement [14], and we anticipate a formal decision on this in the legislative decree or accompanying regulations.
Continued reporting and analysis: In the interim, Italy continues to gather data through the biennial reports (the next reports from companies are due in 2024, covering 2022-2023 data). These reports will provide up-to-date statistics on gender pay differences, which can inform the calibration of the new rules. The Ministry of Labour has also signaled continued commitment to monitoring gender pay disparities; for instance, in its March 2025 gender policy report, it acknowledged that despite progress, a significant pay gap persists and needs action [22]. We can expect official commentary to continue in this direction, underlining the importance of the upcoming legislative decree in achieving “equal pay for equal work” in practice.

In conclusion, Italy’s transposition of Directive 2023/970 is well underway, but not yet complete. The Parliament has done its part by passing the delegation law and setting policy parameters [6]. The focus now shifts to the Government, which must draft and enact detailed legislation by 2026.

The objectives of the transposition, as reflected in official documents, are clear: to fully enforce the principle of equal pay in Italy, increase transparency to illuminate any gender-based pay gaps, involve social partners in creating fair evaluation systems for work, and minimize administrative burdens by smart use of data [8] [11]. By codifying these goals into the upcoming legislative decree, Italy aims to not only comply with EU law but also to advance its national gender equality agenda.