flash news: #remuneration

On 6 June 2023 the EU Pay Transparency Directive came into force. EU member states have until 7 June 2026 to implement  the  provisions of it into national law.

The provisions of the Directive are meant to enforce gender pay equality in member states and prevent wage gaps.

The most important employer obligations under the Directive are:

  • an obligation to inform job applicants of an initial pay level or range of pay envisaged for a job based on objective and gender-neutral criteria;
  • gender pay gap reporting obligations for companies (both public and private companies) employing more than 100 persons.

As a result of the Directive, it will be necessary for the employers to review  recruitment processes, job descriptions, and remuneration policies in terms of gender-neutral remuneration criteria.

Workers will obtain a right to information on  the pay levels of employees doing the same work or work of equal value.