The EU Pay Transparency Directive is set to influence how businesses attract and retain staff by establishing clearer rules regarding compensation, according to Deputy Labour and Social Policy Minister Nataliya Efremova. Speaking at the Next Level HR forum, Efremova noted that while equal pay between genders is already established in European and Bulgarian law, effective implementation remains challenging, citing a gender pay gap in Bulgaria exceeding 13%. Key provisions within the proposed directive include mandatory requirements for employers to list salary ranges in job advertisements and a ban on inquiring about a candidate’s previous salary.
The goal of these measures is to prevent the continuation of existing pay disparities by emphasizing objective, gender-neutral evaluation criteria based on skills, effort, responsibilities, and working conditions. Furthermore, the directive grants employees the right to information, allowing them access to average pay data for their specific category. The legislation mandates that if a pay gap exceeding 5% is identified and cannot be justified by objective criteria, employers must implement corrective measures.
A national monitoring body is also planned to collect and analyze data, track trends, and provide preventive oversight. Companies with 100 or more employees will be required to report on the gender pay gap. Bulgaria is reportedly advancing preparations to incorporate the directive’s main tenets into the Protection against Discrimination Act and amendments to the Labour Code.
Efremova stressed that the objective of the directive is prevention and achieving fairness, rather than imposing sanctions. Ultimately, the implementation of this increased pay transparency is expected to foster a more competitive labor market, benefiting companies that prioritize equality.
Topics: #pay #transparency #directive
This directive sounds like a necessary step toward creating a more equitable workplace.