Pay Transparency Directive to Boost Fairness and Talent Retention, Says Deputy Labour Minister

The EU Pay Transparency Directive is anticipated to assist businesses in attracting and retaining skilled employees by establishing clearer rules regarding compensation. During a forum, Deputy Labour and Social Policy Minister Nataliya Efremova detailed that while the principle of equal pay is already established in Bulgarian and European law, effective implementation remains challenging, noting that the gender pay gap in Bulgaria currently exceeds 13% in favor of men. Key provisions of the directive mandate that employers include salary ranges in job advertisements and prohibit inquiring about a candidate’s previous pay.

The objective is to prevent the continuation of existing pay disparities by basing evaluations on objective, gender-neutral criteria: skills, effort, responsibilities, and working conditions. Furthermore, the directive grants employees the right to information, allowing them access to data on average pay levels within their job category. Employers will be obligated to implement measures to address any identified pay gap exceeding 5% if that gap cannot be justified by objective metrics.

The framework also envisions a national monitoring body responsible for collecting data and tracking trends. Companies with 100 or more employees will be required to report on the gender pay gap. Bulgaria is reportedly advancing preparations to incorporate the directive into its Protection against Discrimination Act and the Labour Code.

The goal, according to officials, is preventative and focused on achieving fairness, rather than solely imposing sanctions. Ultimately, the implementation of this directive aims to foster a more equitable and competitive labor market, enhancing overall pay transparency and ensuring that fairness guides compensation valuation.

Topics: #pay #transparency #directive