EU Pay Transparency Directive 🇪🇺

The EU has adopted new rules to combat wage inequality and help narrow the gender pay gap. The Pay Transparency Directive.

1. Employees and applicants have the right to information.

Employees have the right to receive information about:

  • Their individual salary level.

  • The average salary levels, broken down by gender, for categories of employees performing the same work as them or work of equal value to theirs.

  • Salary levels must be provided prior to a job interview, for example, in a publicly posted job advertisement.

2. Employers must disclose wage differences.

Companies with over 250 employees must annually make the following information etc. publicly available (companies with 100-249 must report every 3 years):

  • The pay difference between all female and male employees.

  • The pay difference between female and male employees in each category of employees divided by basic salary and supplementary / variable allowances.

3. Consequences of non-compliance with the directive.

  1. The burden of proof shifts to the employer when it fails to comply with obligations regarding pay transparency set out in the directive, for example by refusing to provide information requested by an employee.

  2. Employees who have been subjected to gender-based pay discrimination have the right to claim and obtain full compensation or redress.

  3. The compensation should include full payment of overdue wages and related bonuses.

  4. The compensation should put the employee in the same position they would have been in if they had not been discriminated against based on gender.

4. Equal pay for the same or work of equal value.

  1. There is no need to be talking about the same employer. When wage differences can be attributed to one and the same source, the assessment of whether employees perform the same work or work of equal value should not be limited to situations where employees work for the same employer.

  2. It is permissible to compare with a hypothetical comparator or use other evidence if comparable employees do not exist in the company.

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