The EU Pay Transparency Directive is expected to enhance businesses’ ability to attract and retain top talent by establishing clearer rules and greater fairness regarding remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. While existing European and Bulgarian legislation mandates equal pay between genders, effective implementation remains a challenge, as data indicates Bulgaria’s gender pay gap exceeds 13% in favor of men. Key provisions of the directive include requiring employers to disclose salary ranges in job advertisements and banning the practice of inquiring about a candidate’s previous pay.
The objective is to prevent the perpetuation of existing pay inequalities by focusing on objective, gender-neutral evaluation criteria based on skills, effort, responsibilities, and working conditions. Furthermore, the directive guarantees employees the right to information regarding average pay levels within their occupational category. Employers must address any pay gap exceeding 5% that cannot be justified by objective criteria.
A national monitoring body is planned to analyze data trends and perform preventive functions, with companies employing 100 or more individuals required to report on the gender pay gap. Efremova noted that Bulgaria is advanced in preparing to transpose the directive, incorporating its main tenets into amendments to the Protection against Discrimination Act and the Labour Code. She emphasized that the goal is prevention and achieving fairness, rather than imposing sanctions.
Implementing this enhanced pay transparency is anticipated to foster a more competitive labor market. While a regional survey indicated that Bulgarian companies remain cautious regarding new EU regulations on pay, the directive aims to guide businesses toward greater equality and transparency in compensation structures.
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