This website requires JavaScript.


What Italy's new equal pay legislation means for Italian companies

On December 3, 2021 Italy signed a new equal pay law (Law 162/2021) that seeks to tackle the pay gap between men and women and encourage the participation of women in the labor market. The law introduces some important amendments to the Italian Equal Opportunity Code (Legislative Decree 198/2006), which prohibits all direct and indirect remuneration discrimination for the same job or a job considered as having the same status. The new law, focusing on transparency and rewards, is consistent with the Italian National Recovery and Resilience Plan (PNRR), which contains, among other things, a National Strategy for gender equality for the years 2021-2026.

Public and private companies with more than 50 employees must publish a report.

The key points of the new law are:

1 — New reporting obligations for companies with more than 50 employees

Public and private companies with more than 50 employees must publish a report, every two years, about male and female employment and remuneration. Companies with fewer than 50 employees can voluntarily prepare a report.

The reports must include data and information relating to

  • the numbers of male and female workers employed and hired during the year and their professional distribution in the organization as well the distribution of full-time and part-time contracts
  • differences in wages (both base salary and total compensation) and benefits
  • selection and recruitment processes
  • criteria adopted for career advancement, access to professional development and managerial training
  • measures to promote work-life balance
  • diversity and inclusion policies

The companies which submit incomplete or incorrect reports will incur sanctions ranging from a minimum of 1,000 to a maximum of 5,000 euros.

This reporting obligation was already included in the 2006 Equal Opportunity Code, but only for companies with more than 100 employees (instead of 50) and did not provide for sanctions. With the change, the area of interest of the legislation expands to 29,000 companies with more than 50 employees (ISTAT 2019).

The inter-ministerial decree signed on March 29, 2022, defines the procedures for the preparation of the biennial report about male and female personnel by public and private companies that have more than 50 employees. Companies must draw up the report exclusively electronically, via the portal of the Ministry of Labor and Social Policies, at Companies must submit the report no later than September 30, 2022 (only for the two-year period 2020-2021; for all subsequent two-year periods the deadline will be April 30 of the year following the expiry of each two-year period.)

2 — Gender equality certificate

Companies that prepare the equality report and meet certain gender criteria can apply for a “gender equality certificate.”

This new certification will recognize all those companies that take concrete steps to reduce the gender gap in relation to growth opportunities in the company, equal pay for equal jobs, policies for managing differences in gender and maternity protection.

The reference practice UNI / PdR 125: 2022, published on March 16, 2022, provides the first clarifications on the certification of gender equality, defining criteria, technical prescriptions and functional elements.

It identifies 6 areas of evaluation and outlines a series of specific KPIs (Key Performances Indicators) for each area to measure the degree of maturity of the organization regarding gender equality. Each area is characterized by a % weight which contributes to the measurement of the current level of gender equality at the organization and against which improvement over time is measured. These KPIs will be monitored annually and verified every two years, to show the improvements achieved thanks to the implementation of a variety of interventions or remediation plans.

Here are the areas of evaluation and their weights:

  • culture and strategy – 15%
  • governance – 15%
  • HR processes – 10%
  • opportunities for growth and inclusion of women in the company – 20%
  • gender pay equity – 20%
  • protection of parenthood and work-life balance – 20%

The KPIs are of a quantitative and qualitative nature. The quantitative KPIs are measured in terms of percentage change with respect to an internal company value or the average national reference value or the type of economic activity. The qualitative KPIs are measured in terms of presence or absence.

The system is applied starting from micro-organizations (1-9 employees) up to multinationals, with simplifications provided for the smaller organizations.

To access the certification, an organization needs to have an overall summary score of at least 60%.

We are awaiting the implementing decrees which will establish the minimum requirements for obtaining the certification, the methods of acquiring and monitoring data transmitted by employers and the bodies responsible for certification.

3 — Tax exemptions for companies in possession of the gender equality certificate

Starting from 2022, private companies that have obtained the gender equality certificate are provided with an exemption from the payment of social security contributions to be paid by the employer. The exemption will equal 1% of the amount to be paid, with a maximum limit of 50,000 euros per company per year. The public resources allocated by the Italian government will be 50 million euros per year.

Companies that fail to publish the biannual equality report are not eligible for the exemption.

4 — Award scores for virtuous companies in public bids for contracts

The law also recognizes "an award score" for private companies that, as of December 31 of the year preceding the reference year, have obtained the certification of gender equality. This will boost companies' scores for the participation in public bids for contracts launched by public administrations and for European, national and regional funding.

5 — Direct and indirect discrimination

The new law expands the definitions of direct and indirect discrimination. It now includes as potential subjects of direct discrimination not only employees but also candidates in the recruiting phase. It also expands the definition of indirect discrimination to include changes to employment conditions and working time arrangements that disadvantage employees or restrict their opportunities to participate in company life or to progress in their career on grounds of their pregnancy, parental or caring responsibilities, gender or age.

6 — Improved gender balance on boards of unlisted public companies

With the new law, at least 2/5 of the members of boards of unlisted companies controlled by public bodies must be from the under-represented gender. Previously, this requirement applied only to listed companies.

How does PayAnalytics help Italian employers meet the new requirements?

  • PayAnalytics is a global solution that is adaptable to all the main regulatory environments.
  • PayAnalytics fully supports the reporting requirements of the Italian equal pay legislation.
  • Our analytics can analyze differences and compare different job classes of equal value, by any pay component, broken down by gender.
  • The PayAnalytics software suggests salary changes to correct any discrepancies primarily attributable to the pay gap.
  • PayAnalytics goes beyond gender, providing analysis by any secondary demographic value, and their intersection.
  • We help companies around the world find and close all pay gaps and make it easy for them to meet their reporting requirements and regulations.

Do not hesitate to contact us for further inquiries or book a meeting to demonstrate the software. You can find more information on PayAnalytics on our website.

PayAnalytics Newsletter erhalten
PayAnalytics Newsletter erhalten

PayAnalytics Newsletter erhalten

PayAnalytics' reporting for Canada's Pay Equity Act

At PayAnalytics, we often talk about equal pay for work of equal value. Canada’s Pay Equity Act, implemented August 2021, takes a unique approach to achieving this objective. Typically, pay equity requirements focus on how men and women doing similar jobs are paid, but Canada now focuses on the value of the job to the employer.

Das Allianz-Projekt für Lohngerechtigkeit gewinnt den deutschen Personalwirtschaftspreis

Die deutschen Personalwirtschaftspreise 2022 wurden in Köln Anfang September verliehen. Die Allianz, eine weltweit tätige Versicherungsgesellschaft mit Sitz in Deutschland, hat den ersten Preis in der Kategorie Technologie und Digitales (Tech & Digital) für den globalen Ansatz zur weltweiten Schließung der Lücke bei der gerechten Entlohnung gewonnen. Dieses Projekt stellt die gleiche Bezahlung für mehr als 100.000 Angestellte in mehr als 70 Ländern sicher. Das bedeutet, dass bei der Allianzversicherung Frauen und Männer für gleiche oder vergleichbare Arbeit gleich bezahlt werden.

PayAnalytics founders at The Workplace Equity Forum '22

Two of our founders, Margret Bjarnadottir and David Anderson, will speak at the Workplace Equity Forum '22 this October in Austin, Texas. The conference will feature speakers offering new perspectives on how to think about diversity, equity, and inclusion.

Using technology to achieve pay equity

"With the right tools, supported with the right data, we can bring about workplace transformation and pay equity."

In the latest issue of Dynamic Magazine, our founder Margrét shares valuable insights for leaders using data analytics or AI on their pay equity journeys.

People Analytics als Instrument zur Verbesserung der Lohngerechtigkeit – ein Blogbeitrag für Trend Report

In einem aktuellen Blogbeitrag für das deutsche HR-Magazin Trend Report erklärte Margrét Bjarnadóttir, Mitbegründerin von PayAnalytics, wie wichtig es ist, die Grenzen von KI-basierten HR-Tools zu erkennen, wenn wichtige Entscheidungen über Einstellungen, Vergütung, Beförderungen und Weiterbildungsmöglichkeiten getroffen werden.

The Nordic DEI Paradox - Not so Paradoxical?

Margret, our co-founder, Dr. Marie Louise Sunde, Founder and CEO of Equality Check, and Tuula Rytila, Corporate Vice President at Microsoft Digital Stores had an inspiring discussion on a panel on gender equity at the Nordic Innovation Summit two weeks ago. The panel was called "The Scandinavian DEI Paradox—Not So Paradoxical?" referring to the fact that while the Nordics consistently score at the top of every equality scale, women are still underrepresented on boards and in top management.

California strengthens its pay equity requirements

California, the first U.S. state to pass a law on pay data reporting, is considering proposed legislation taking the requirements of the original bill even further. Senate Bill 973 on pay equity was passed in September 2020 and requires large employers to provide data on employees by race, ethnicity, and sex in the ten job categories and pay ranges used by the U.S. Bureau of Labor Statistics. The first data reports were submitted to the Department of Fair Employment and Housing (DFEH) in March 2021.

VÍS — Working towards gender equality

VÍS — Working towards gender equality

VÍS, the largest insurance company in Iceland, offers comprehensive insurance solutions in the consumer and corporate sectors. They have close to 200 employees, mainly in Reykjavik and in different field offices around the country.

How to use use People Analytics to Build an Equitable Workplace

Harvard Business Review just published this article, which is written by two of PayAnalytics' founders, Professors Margrét Bjarnadóttir and David Anderson, along with Professor David Gaddis Ross. It discusses how automation is changing HR and what we need to be aware of when applying Automation and AI in People Analytics.

Can Pay Gap Analysis be the driver of equal opportunities in the workplace?

The unjustified pay gap between men and women is still present, and it seems that it will not go away without some focused efforts. Although countless studies and reports show that the gap is there, many still do not believe it impacts their own organisation. The EU Commission is increasingly communicating that the issue must be addressed. Some countries have begun the journey and have insights to share. Data analysis to determine the gap and structured implementation of measures to close the gap is increasingly used.

Dr Margrét Vilborg Bjarnadóttir will participate in this important event on the 29 June.

Awards premiere of Universal Fair Pay Check

On the 17th of March, companies will be awarded based on the Universal Fair Pay Check. This international certification measures equal pay performance in a coordinated way between companies in different countries.

Consulta la conferencia que realizó Laura Bayés Sánchez sobre cómo PayAnalytics proporciona las medidas necesarias para la nueva legislación española

En la conferencia se analiza la nueva situación laboral que la publicación del Real Decreto 901/2020 y 902/2020 del 13 de octubre dejará en las empresas españolas. Así mismo, se examinan los problemas que derivan de estas normativas y la manera en la que PayAnalytics los aborda y proporciona soluciones rápidas, eficaces y sencillas.

Companies in Spain are now obligated to take action to ensure equal pay for work of equal value

Companies in Spain are now obligated to take action to ensure equal pay for work of equal value. DireACTIVAS, one of our partners in Spain, wrote an article (in Spanish) on the new legislation and the potential impact it will have on equality in Spain. We are happy to assist Spanish companies in fulfilling the requirements of the new legislation - and our solution is of course also in Spanish!

Margrét Bjarnadóttir will participate in a Reykjavik Global Forum 2020 digital session

Come and join us virtually for a conversation about equal pay: the fast changing legislation around the world, the role of analysis and data driven decision support, the equal pay journey and key levers to drive change - all packed into 90 minutes.

Margrét Bjarnadóttir from PayAnalytics will participate in a Reykjavik Global Forum 2020 digital session on Wednesday 11th November 09:30 UTC.

The name of the event is A Fair Diagnosis: It’s time to close the wage gap - FPI Lab and you can register using the registration link below.

PayAnalytics wird Partner des Universal Fair Pay Check

Das Fair Pay Innovation Lab (FPI) mit Sitz in Berlin führt das Pilotprojekt „Universal Fair Pay Check“ durch – eine standardisierte, international Methode zur Gewährleistung gerechter Bezahlung. FPI hat PayAnalytics als Partner für den Universal Fair Pay Check mit ins Boot geholt.

How data and analytics are essential to the process of closing pay gaps — a blog post for PRCA

In a recent blog post for PRCA PayAnalytics Co-founder and Chairman Margrét Bjarnadóttir explains in a nutshell how data and analytics are essential to the process of closing pay gaps – and keeping them closed. She explains, among other things, the two types of pay gaps most commonly mentioned in the press and the difference between the two. The blogpost also embeds a video where Margrét amongst others discusses the role of ethics and fairness when closing pay gaps. The discussion was a part of the PRCA Ethics month.

Margret Bjarnadottir wrote for Ms. Magazine: We’re Not Waiting 200 Years to Close the Gender Pay Gap

The World Economic Forum estimates that it will take over 200 years to close the gender pay gap. No one should have the patience to wait that long. How can we accelerate change? The answer may lay in data and models with a good dose of transparency.

The journey starts with gathering the data and understanding the pay structure. Then companies move on to identifying areas for improvement and eliminating unexplained demographic pay gaps through corrective action—in other words, ensuring equal pay for equal work.

The New Business Venture Fund investiert in PayAnalytics

The New Business Venture Fund hat 525.000 USD in das Softwareunternehmen PayAnalytics investiert.

PayAnalytics hat eine Cloud-Lösung für gleiche Entlohnung entwickelt und ist in den letzten Jahren rasant gewachsen. Die Software hilft bereits mehr als 50 Unternehmen und Organisationen in Island, die insgesamt 30.000 Mitarbeiter bzw. rund 14 % des isländischen Arbeitsmarktes beschäftigen, geschlechtsspezifische Lohnunterschiede zu beseitigen.

42% of organizations are planning for pay equity adjustments in 2020

42% of organizations are planning for pay equity adjustments in 2020 according to the recently published @WorldatWork 2019-2020 Salary Budget Survey. Is yours one of them? PayAnalytics can help. Our customers use PayAnalytics to assist them in every step on the way towards a transparent and fair pay structure. Our software solution recommends individual raises to close the gap, quickly detects outliers, gives an overview of the cost to help with the budgeting, and so much more.

Dr. Margret Bjarnadottir (@mvilborg2) from @payanalytics recently wrote a guest feature for @insideBigData about addressing demographic #PayGaps with Data-driven Solutions.

Demographic pay gaps, including the gender pay gap, are the result of more complex factors than just a desire to minimize payroll expenses. They stem from unconscious biases and processes that are better suited to one group compared to another. And, as multiple executives have found out, good intentions and “mindfulness” are not enough to eliminate the gaps.

Why Companies' Attempts to Close the Gender Pay Gap Often Fail

PayAnalytics co-founders David Anderson and Margrét V. Bjarnadóttir wrote an article together with Cristian Dezso and David Gaddis Ross for Harvard Business Review about closing the gender pay gap.

Gender pay equity has become a big point of contention at many companies. Not only have politicians and other public figures spoken out against the gender pay gap, but there has also been a rising tide of high profile lawsuits targeting major employers, most notably in the U.S., with all the bad publicity and financial liability they entail.