The EU Pay Transparency Directive is anticipated to improve talent acquisition and retention within businesses by establishing clearer rules regarding remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. While equal pay between genders is already stipulated in both European and Bulgarian legislation, effective implementation remains challenging, with data indicating the gender pay gap in Bulgaria exceeds 13% in favor of men. Key provisions of the directive include requiring employers to publish salary ranges in job advertisements and prohibiting the practice of asking candidates about their previous pay.
These measures aim to prevent the continuation of existing pay disparities by focusing evaluation on objective, gender-neutral criteria: 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 professional category. Employers will be obligated to implement corrective measures if a pay gap exceeding 5% cannot be justified by objective criteria.
The framework also envisions a national monitoring body to analyze data, track trends, and provide preventive oversight. Companies with 100 or more employees will be required to report on the gender pay gap. Efremova stated that Bulgaria is advanced in preparing to incorporate the directive’s provisions into the Protection against Discrimination Act and the Labour Code.
The goal, she emphasized, is prevention and achieving fairness, rather than solely imposing sanctions. The successful implementation of this directive is expected to foster a more equitable and competitive labor market, where a commitment to pay transparency offers a distinct advantage for companies seeking to build stable teams.
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