May 1st, celebrated around the world as International Labor Day, is now a moment of collective reflection on the transformations of the world of work and the inequalities that still exist in it, both in access and in the quality of employment: just think that over 1 billion workers - around 1/3 globally - do not earn enough to lead a dignified life and that over 27.6 million people are victims of forced labor around the world.
Added to this picture are the gender disparities which, despite growing attention, have not yet been filled: the issue of the wage difference between men and women still represents, together with the question of representation, one of the main indicators of inequalities in the world of work. This is an issue and a right that has its roots in the Equal Pay Remuneration Convention, promoted by the ILO in 1951 as the first step towards gender equality in the world of work.
The global and Italian scenario
To date, no global economy has achieved gender equality and large gaps persist, especially in the dimensions of economic participation and political empowerment: data from the Global Gender Gap Report 2025 of the World Economic Forum confirm that, at the current rate, it will still take around 123 years to reach complete equality at a global level.
In the EU, women earn on average only 77% of what men earn on an annual basis: this means that, to earn the same income that men earn in a year, women have to work for an average of 15 months and 18 days. This period, also known as the "ghost quarter", represents time taken away from education, family, study or rest. In fact, during this period women work for free.
In Italy, the employment and economic dimension is still confirmed as the main point of weakness, in reference to gender equality, according to the statistics of the European Institute for Gender Equality (EIGE), in which our country is positioned in 27th and last place, precisely in the area of work.
European directives and Italian transposition
Europe intervened on the topic with Directive 970 of 2023 on pay transparency, which will also be implemented by Italy from June 2026. The principle of the directive is simple: for equal work, and work of equal value, equal pay. To make it concrete, the legislation introduces operational obligations for companies, such as:
- transparency right from the selection stage, with indication of the salary or salary range in the advertisements;
- definition and formalization of objective remuneration criteria, based on role evaluation systems and shared with workers' representatives;
- concrete tools for employees to highlight any pay disparities: workers will be able to request information on average pay levels by gender, while companies with at least 100 employees will have to carry out structured analyzes of the gender pay gap and periodic reporting. If the gap exceeds 5% without objective justification, it will be necessary to activate a correction plan.
The position of the UN Global Compact
The UN Global Compact and the Italian Network welcome the legislation: as underlined by the ILO, the gender pay gap is neither a marginal nor temporary phenomenon but produces cumulative losses of income throughout the entire working life cycle, with direct effects on women's economic security, pensions and quality of work.
The Directive offers concrete tools for workers to highlight any pay disparities, offering companies the opportunity to review their human capital governance models; integrate equal pay into ESG and social sustainability strategies; align with international standards on decent work, also referred to by the ILO, the WEPs and the 2030 Agenda.
To help companies achieve ambitious corporate objectives for gender equality, with a view to increasing the impact of SDG 5, the Italian Network is offering for the fifth year the Target Gender Equality Accelerator, a six-month training course aimed at participating companies. More info on applying here.
Image source: UNGC image Stock