From Europe to Italy: pay transparency and gender equality

European Employment Insights – May 2026

European Andersen professionals, present in over 20 jurisdictions, have contributed to the latest edition of the Employment Insights Newsletter, providing an in-depth analysis of the main developments in European labour law. The publication reviews the most recent regulatory changes, case-law trends, guidance issued by competent authorities, and developments in collective bargaining across different countries.

To read the full newsletter click here.

Gender Equality: a strategic priority for CEOs and businesses

In this interview, Uberto Percivalle and Francesca Capoferri, Partner at Andersen in Italy, specialising in employment law, industrial relations and strategic HR advisory, explore the topic of gender equality, which is increasingly relevant not only from a cultural perspective but also as a key indicator for business strategy and ESG sustainability.

From pay transparency to female representation in leadership roles, and the implications of new European regulations for multinational organisations, the analysis highlights the main challenges and opportunities for employers operating in Europe.

Francesca Capoferri highlights how gender equality is becoming increasingly central to corporate strategies. According to the Partner at Andersen in Italy, what was once mainly considered a matter of organisational culture and social responsibility is now a key factor for governance, sustainability and competitiveness.

Capoferri emphasises that the evolution of the European regulatory framework and growing investor attention to ESG criteria are pushing companies to measure and report inclusion, representation and pay equity more rigorously, moving beyond general statements towards concrete data and outcomes.

European data show that women, while representing a significant share of the workforce, remain underrepresented in decision-making roles, holding just over one-third of management positions in the EU. This issue concerns not only fairness, but also companies’ ability to develop a diverse leadership pipeline.

The new ESG rules reinforce this approach, requiring greater transparency on workforce composition, career progression and female representation in leadership roles. At the same time, the Pay Transparency Directive will require companies to monitor and correct unjustified pay gaps.

For Capoferri, multinational organisations face an even greater challenge and need a consistent European approach, while still taking local specificities into account.

Finally, gender equality should not be seen only as compliance: leading companies use it as a growth lever, improving attractiveness, innovation and employee engagement. For CEOs, Capoferri concludes, the priority is to integrate it into corporate strategy with measurable goals and continuous monitoring, turning it into a sustainable competitive advantage.

Implementation in Italy of the Gender Pay Gap Directive

For Italy, Uberto Percivalle, Partner responsible for the Employment & Labor service line, analysed the main developments in labour law, with particular reference to recent progress on gender pay equity.

May 1st Labour Decree: key developments

For several years, the Italian Government has issued, on Labour Day (1 May), a decree on employment matters. This year, Law Decree No. 62 introduced measures addressing three main areas of labour law: fair wage, digital work, employment incentives and TFR management.

The aim is to strengthen protection, transparency and employment in the Italian labour market.

The Decree strengthens the concept of “fair wage”, used as a benchmark to assess remuneration adequacy in the absence of a statutory minimum wage. It then addresses digital platform work, focusing on worker classification and the impact of algorithms in managing employment relationships, with rules initially designed for riders but potentially applicable more broadly.

The Decree also introduces employment incentives aimed at promoting the hiring of women and young people, supporting development in Special Economic Zones and encouraging contract stabilisation, while also promoting gender equality and work-life balance. Finally, it extends deadlines for TFR payments to the Treasury Fund.

Fair wage

The Decree defines the “fair wage” as remuneration established by national collective bargaining agreements signed by the most representative trade union and employer organisations.

The Ministry of Labour will monitor wage adequacy in relation to constitutional principles, while CNEL will play a central role in collecting and analysing wage and collective bargaining data.

If collective agreements are not renewed within 12 months of expiry, wages must be increased by an amount equal to 30% of the HICP (Harmonised Index of Consumer Prices). It also becomes mandatory to indicate the applicable collective agreement on payslips.

Unlawful recruitment via digital tools

The Decree addresses platform work, a topic frequently litigated in Italy, particularly regarding the distinction between dependent and self-employment.

A presumption of employment is introduced where the worker is subject to control or direction, including algorithmic management. Platforms must report data to INPS, INAIL and the Labour Inspectorate, and retain information for at least five years on activities, working hours, assignments and compensation, making it accessible to authorities and workers.

Digital platform workers

The Decree strengthens transparency and rights for platform workers: they will have access to information on algorithms used to assign tasks, calculate pay and manage evaluations or suspensions. Automated decisions must be explained and subject to human review.

From 1 July 2026, workers will have access to the single employment ledger, including data on deliveries and monthly earnings.

Mandatory safety training via a public platform is introduced, while tips are exempt from social security contributions and TFR accruals and subject to a preferential tax regime.

Employment incentives introduced by the May Day Decree

The Decree introduces new incentives to promote permanent employment contracts.

Women bonus

A 100% social security exemption (up to EUR 650 per month for 24 months) is introduced for hiring long-term unemployed women on permanent contracts, with enhanced conditions for disadvantaged categories under EU rules.

Youth and Special Economic Zone incentives

Similar incentives apply to:

• unemployed workers under 35;
• hiring in Special Economic Zones in Southern Italy;
• small enterprises meeting specific requirements.

These incentives require a net increase in workforce, no recent redundancies, and compliance with spending limits. They may be revoked if dismissal occurs within six months.

Additional incentives are also  for the conversion of fixed-term contracts into permanent roles and for companies certified in gender equality and family-friendly policies.