European Parliament approves pay transparency directive
05. April 2023New EU EU pay-transparency rules
New pay-transparency rules aimed at tackling the gender salary gap across the EU will reform the world of work. The rules, approved by the European Parliament last month, are meant to change salary benchmarking and pay philosophies and create a more equal society. The legislation will require EU companies to disclose information that makes it easier for employees to compare salaries.
The directive, proposed by the Commission in March 2021, will now need to formally be adopted by member states and transposed into national law within three years after entering into force.
The directive seeks to make salaries more transparent by obliging companies with more than 100 employees to report and fix their wage disparities, in a bid to narrow the EU gender pay gap, which currently stands at 12.7%.