On 10 May, the pay transparency directive was signed. It is now awaiting publication in the Official Journal of the EU.

The directive will enter into force on the twentieth day after its publication. Member states will have 3 years to implement it.

The three-year deadline is a departure from the standard two-year period. It is intended to enable employers to prepare for the changes to meet new challenges.

The new obligations will apply to all employers, both in the private and public sectors (with some of them being dependent on headcount levels).

Not only employees but also job applicants will be able to take advantage of the new rights.

Candidates will be guaranteed the right to "informed" negotiations. In the hiring process, you will need to include information about your starting pay. Questions about past salaries will be unacceptable, and job offers will have to be gender-neutral.  

Employees will gain greater access to pay information, such as access to the criteria used to determine the pay (which must be gender-neutral), pay levels and pay progression. They will be able to request information on the salaries of employees performing the same work or work of equal value.

New obligations will be imposed on employers. The most important of these is the obligation to report the pay gap. If it is at least 5%, "corrective" measures will have to be taken.

Failure to comply with the new obligations will be subject to sanctions, including fines. Therefore, we should start preparing for the changes now.

Find more in the PRO HR May 2023