Pay Transparency Directive to Boost Fairness and Talent Retention, Says Deputy Labour Minister

The EU Pay Transparency Directive is set to introduce clearer regulations regarding remuneration, aiming to assist businesses in attracting and retaining qualified staff. According to Deputy Labour and Social Policy Minister Nataliya Efremova, the directive addresses persistent implementation gaps, despite existing equal pay mandates in European and Bulgarian law. She noted that current data indicate Bulgaria’s gender pay gap exceeds 13% in favor of men.

Key provisions of the directive include mandatory salary range disclosure in job advertisements and a prohibition on employers inquiring about a candidate’s previous pay. The objective is to prevent the continuation of existing pay disparities by emphasizing objective, gender-neutral criteria for evaluation, focusing on skills, effort, responsibilities, and working conditions. Furthermore, the directive establishes employees’ right to information, allowing them to access data on average pay levels within their occupational category.

The legislation mandates that if a pay gap exceeding 5% cannot be justified by objective criteria, employers must implement corrective measures. To ensure compliance, a national monitoring body is planned to collect and analyze data and track market trends. Additionally, companies employing 100 or more individuals will be required to report their gender pay gap figures.

Bulgaria is reportedly advanced in preparing to transpose the directive, integrating its main provisions into the Protection against Discrimination Act and supplementing the Labour Code. Efremova stated the focus is on prevention and achieving fairness rather than solely imposing sanctions. Ultimately, the goal of enhanced pay transparency is to foster a more equitable and competitive labor market.

While a recent survey indicated that companies remain cautious regarding new EU-level pay regulations, the directive aims to standardize fair compensation practices.

Topics: #pay #transparency #directive