The European Union is taking a decisive step towards eliminating labor market uncertainties and fighting gender inequality. The new pay transparency rules, based on the Directive adopted in 2023, aim to protect workers and ensure fairer conditions for all.
The end of "hidden" pay
One of the most significant changes is the obligation for employers to provide information regarding the starting salary or a specific salary range either within the job advertisement itself or before the interview takes place. This will save time and resources for candidates, who often invest significant effort into the recruitment process, only to find that the offer does not meet their expectations.
Ban on questions about previous income
To prevent the carryover of historical inequalities, the new regulations prohibit employers from asking candidates about their previous salaries during interviews. This will allow new employees to negotiate based on the current market value of the position, rather than their past earnings.
Combating the gender pay gap
Currently, the average pay gap between men and women in the EU is 11.1%. The new regulation aims to reduce this percentage through several mechanisms:
- Employees will have the right to information regarding their individual pay and the average pay levels within the company, broken down by gender for similar positions.
- Large companies (with over 100 employees) will be required to publish data on the pay gap between men and women.
- If an unjustified gender pay gap of at least 5% is identified, the employer will be required to conduct a formal assessment and correction.
These measures will not only increase worker confidence but also ensure easier access to justice for those who fall victim to discrimination in determining remuneration.