The EU Pay Transparency Directive is anticipated to help businesses improve talent attraction and retention by establishing clearer rules regarding compensation. According to Deputy Labour and Social Policy Minister Nataliya Efremova, while equal pay is already stipulated in European and Bulgarian law, effective implementation remains a challenge, evidenced by Bulgaria’s gender pay gap exceeding 13% in favor of men. Key components of the directive mandate significant changes, including the requirement for employers to specify salary ranges in job advertisements and prohibiting inquiries about a candidate’s previous pay.
The objective is to prevent the continuation of existing disparities by basing job evaluations on objective, gender-neutral criteria covering skills, effort, responsibilities, and working conditions. Furthermore, the directive guarantees employees the right to information, allowing them access to data on average pay levels within their job category. Employers must address any pay gap exceeding 5% if it cannot be substantiated by objective criteria.
A national monitoring body is planned to collect and analyze data, track trends, and serve a preventive function. Companies with 100 or more employees will be obligated to report on the gender pay gap. Bulgaria is reportedly advanced in preparing to incorporate the directive’s provisions into the Protection against Discrimination Act and the Labour Code.
Efremova emphasized that the goal is prevention and achieving fairness, stating that remuneration is a primary measure of work value. Increased pay transparency is expected to foster a fairer labor market, benefiting companies that prioritize equality. Despite this, a recent survey indicated that Bulgarian companies remain cautious about new EU regulations, continuing to rely on competitive benefits for employee retention.
Topics: #pay #transparency #directive
