Italy Gender Pay Gap Reporting: What You Need to Know

To find the full text of the global pay reporting law in Italy, refer to Italy’s Equal Pay Law (Legislative Decree No. 198/2006), amended by Law No.162/2021. Regulations can also be found at Interministerial Decree of 29 March 2022. 

Failure to submit the reports will result in administrative fines. If the omission continues for longer than 12 months, the company will be suspended for one year from contribution benefits. The National Labor Inspectorate verifies the veracity of the reports and, in the event of a false or incomplete report, a pecuniary administrative sanction of €1,000-5,000 is applied.

The EU Pay Transparency Directive may introduce stricter regulations and potentially higher penalties for non-compliance. These penalties will be determined by each Member State, including Italy, but are expected to be substantial. The severity and duration of non-compliance will be considered when determining the penalty, with stricter penalties for repeated offenses.

Unlike reports in some countries, the Italy report must cover the overall production units and dependencies and each production unit with more than 50 employees.

In Italy, the pay information is reported separately for executives, managers, clerks, and workers (dirigenti, quadri, impiegati, and operai). Syndio provides Global Pay Reports customers with a detailed explanation of all pay elements to include in the analysis, as well as guidance on groupings.

The pay gap requirement in Italy focuses primarily on gender. The reporting requirements and metrics are designed to assess and address the gender pay gaps within organizations. 

While the law doesn’t explicitly require reporting on race/ethnicity pay gaps, many organizations also analyse race and ethnicity gaps as part of their pay transparency strategy, where it is permitted by law. 

Syndio’s PayEQ solution allows you to analyse pay equity and opportunity gaps across multiple dimensions, including race, gender, ethnicity, age, disability, and more. This provides a comprehensive understanding of how different groups are affected by your policies and practices.

Syndio provides software and expert professional services to help companies comply with pay equity, pay reporting, and pay transparency regulations. Syndio helps you analyse, remediate, explain, and report on pay gaps so you can stay on top of compliance in Italy. Learn more: https://synd.io/global-pay-reporting/.

The law in Italy analyses pay gaps, not pay equity. What’s the difference? 

An unadjusted pay gap (also called an “uncontrolled pay gap”) is the difference between the median or mean pay of two groups, such as men and women.

• Median pay gap: Imagine lining up all the earnings for two groups of employees (e.g., men and women) from lowest to highest. The median pay gap is the difference between the middle earnings in each line. It’s a good indicator of typical pay differences.
• Mean pay gap: This compares the average earnings of each group. However, it can be skewed by extremely high or low earners.

Pay equity, or the adjusted pay gap, accounts for factors that can legitimately explain differences in pay, such as performance ratings, tenure with the company, or location.

The median and mean pay gaps provide valuable insights, but they don’t tell the whole story. There may be legitimate reasons for pay differences between employees. The adjusted pay gap (pay equity) accounts for these factors, revealing whether a pay disparity truly exists (which is unlawful in many countries) so you can take corrective action. Syndio’s PayEQ software is the trusted solution for global enterprises to rapidly identify, address, and prevent pay disparities.