Pay equity and pay Transparency: Italy is working to implement Directive (EU) 2023/970

Italy has initiated the transposition process of EU Directive 2023/970, aimed at eliminating the gender pay gap and promoting pay transparency and equal pay between men and women. However, the legislative decree approved in February is not yet in its final form and, until June 7, 2026 (the European deadline by which the directive must be implemented), it may still be amended. Moreover, it introduces certain interpretations that risk significantly reducing the impact of the European legislation in our country.

In particular, Article 3 of the decree defines the elements included in “remuneration” and specifies that variable components granted on an individual basis—such as individual bonuses or one-off payments—are excluded. Yet it is precisely within the variable portion of compensation that the greatest risks of disparity and discrimination often arise. Excluding these elements from the scope of application could therefore weaken the directive’s effectiveness in achieving its goals of fairness and transparency.

There is still time, however, for possible adjustments and for constructive dialogue among institutions, companies, and social partners. This is the basis of the appeal launched by Winning Women Institute, which has been working for years on gender equality: the transposition must not distort the structure and objectives of the directive and must therefore safeguard its principles and purposes.

According to data from the Winning Women Institute Observatory (updated as of January 6, 2026), approximately 12,000 organizations are certified under UNI/PdR 125:2022, involving around 2,600,000 employees. A total of 148 companies were due for renewal by November 2025 and, among these, only 4 (2.7%) did not renew their certification.

“Certified companies will be better prepared to address the European directive on pay transparency, which represents a historic opportunity for our country and therefore must not be weakened, but implemented with consistency and vision,” said Paola Corna Pellegrini, President of Winning Women Institute.

“The certification is evolving from an incentive tool into a stable governance lever. The fact that almost all companies due for renewal have successfully renewed demonstrates how organizations recognize the strategic value of a structured path that goes beyond mere formal compliance,” said Sabrina Testori, Pay Equity and Transparency Advisor at Winning Women Institute.

“A fairer labor market is also more competitive. Pay transparency becomes not only a matter of social justice, but also a lever for retaining talent and strengthening corporate reputation. The future value will not lie in the number of certifications, but in the quality of training pathways and in the ability to integrate them into organizational systems, governance, and companies’ ESG strategies,” added Maurizio Mosca, Gender Expert and President of the Scientific Committee of Winning Women Institute.

Many companies have already chosen to stand on the side of pay equity and transparency; postponing this decision risks undermining the ultimate goal. The challenge in the coming months will not be merely technical or regulatory, but also cultural and strategic: ensuring that pay transparency becomes a concrete driver of fairness, competitiveness, and sustainability. Companies should take action now.

Photo: Paola Corna Pellegrini, President of Winning Women Institute.