Exploring The New Pay Transparency Directive In The EU

By CXR Team posted 02-05-2023 11:00 PM


While strides in pay transparency are making their way across the United States, the European Union is also putting forth stronger regulations with its latest pay transparency directive. Once the directive receives final approval, EU member states will be given three years to begin acting upon the new regulations. Here are a few key takeaways:

Pay transparency in the recruiting phase: Employers will be required to disclose salary information prior to interviews and are not permitted to ask a candidate about their pay history.

Increased rights for existing employees: Regardless of company size, employees will be given the right to ask for pay information on their individual pay level and on average pay levels, broken down by sex, for categories of workers doing the same work or work of equal value. Additionally, workers cannot be restricted from disclosing their own pay information.

Reporting on gender pay gap: Employers with at least 100 employees will be required to report information on pay gaps between male and female workers.

Pay assessment: Going beyond just reporting, employers will have to remedy gender pay gaps of more than 5% without justification.

Here at CXR, we’re excited to see the pay transparency movement taking shape across the globe. Be sure to bookmark our Transparency in Recruiting hub to stay on top of the latest information. Read more on this directive and its nuances over at Mondaq.


Latest Podast Show

Community Events