The EU Pay Transparency Directive aims to enhance talent acquisition and retention by establishing clearer rules regarding remuneration. According to Deputy Labour and Social Policy Minister Nataliya Efremova, the directive seeks to address existing disparities, noting that despite existing legislation enshrining equal pay, the effective implementation remains challenging, evidenced by Bulgaria’s gender pay gap exceeding 13% in favor of men. Key components of the directive mandate greater workplace transparency.
Employers will be required to publish salary ranges in job advertisements, and the practice of inquiring about a candidate’s previous pay will be prohibited. The goal is to eliminate inherited inequalities by basing evaluations on objective, gender-neutral criteria: skills, effort, responsibilities, and working conditions. Furthermore, the directive guarantees employees the right to information regarding average pay levels within their job category.
The legislation also places obligations on employers: if a pay gap exceeding 5% cannot be justified by objective metrics, remedial action must be taken. A national monitoring body is planned to analyze data and track trends, while companies with 100 or more employees must report their gender pay gap. Efremova stated that Bulgaria is preparing to transpose the directive into the Protection against Discrimination Act and the Labour Code, aiming for prevention rather than sanctions.
The overall objective is to foster a more equitable and competitive labor market. While a recent survey indicated that Bulgarian companies currently favor increasing pay levels and benefits for retention, the implementation of this directive is expected to elevate standards of pay transparency and fairness across the sector.
Topics: #pay #transparency #directive
