The EU Pay Transparency Directive is set to introduce standardized rules and increased fairness in remuneration, aiming to assist businesses in attracting and retaining talent. Deputy Labour and Social Policy Minister Nataliya Efremova highlighted that while equal pay between genders is already legislated in European and Bulgarian law, effective implementation remains challenging, citing a gender pay gap in Bulgaria exceeding 13% in favor of men. Key changes under the directive mandate that employers must publish salary ranges within job advertisements and prohibit the practice of asking candidates about their previous pay.
The objective is to prevent the continuation of existing inequalities by establishing 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 professional category. Employers will be required to implement corrective measures if a pay gap exceeding 5% cannot be justified by objective criteria.
The framework also calls for a national monitoring body to analyze data, track trends, and perform a preventative function. Companies with 100 or more employees must report on their gender pay gap. Bulgaria is advancing preparations to incorporate the directive’s provisions into the Protection against Discrimination Act and the Labour Code.
Officials noted the focus is on prevention and achieving fairness rather than imposing sanctions. By enhancing pay transparency, the directive aims to foster a more competitive labor market. While a regional survey indicated that Bulgarian companies remain cautious regarding new EU-level regulations on pay transparency, the ultimate goal remains establishing remuneration as a clear measure of work value and ensuring fairness across the workforce.
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