The EU Pay Transparency Directive is expected to help businesses improve talent acquisition and retention by establishing clear rules regarding remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. Efremova noted that while equal pay is legally mandated in both European and Bulgarian law, effective implementation remains challenging, citing a gender pay gap in Bulgaria exceeding 13% favoring men. Key provisions of the directive aim to enhance pay transparency.
Among the changes is the requirement for employers to include a salary range when posting job advertisements, and the practice of questioning candidates about their previous pay is banned. The goal is to prevent the continuation of existing pay inequalities by basing 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 job category.
If an employer identifies a pay gap exceeding 5% that cannot be justified by objective criteria, they will be required to implement corrective measures. A national monitoring body is also planned to analyze data and track trends. Companies employing 100 or more staff will be mandated to report on the gender pay gap.
Bulgaria is reportedly advanced in preparing to transpose the directive, incorporating its main provisions into the Protection against Discrimination Act and amending the Labour Code. Efremova emphasized that the directive’s purpose is prevention and achieving fairness rather than solely imposing sanctions. The implementation of this transparency measure is expected to foster a more equitable and competitive labor market.
Topics: #pay #transparency #directive
