The EU Pay Transparency Directive is expected to assist businesses in attracting and retaining talent by establishing clearer rules regarding remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. While Bulgarian legislation already enshrines the principle of equal pay, the persistent gender pay gap, which exceeds 13% in favor of men, remains a significant challenge. The directive introduces several key changes to enhance pay transparency.
Among these is the requirement for employers to disclose salary ranges in all job advertisements, alongside a ban on inquiring about a candidate’s previous salary. The overarching aim is to prevent the continuation of existing pay disparities by mandating the use of objective, gender-neutral criteria—specifically skills, effort, responsibilities, and working conditions—for evaluation. Furthermore, the directive guarantees employees the right to information, allowing them access to data regarding average pay levels within their occupational category.
If an employer identifies a pay gap exceeding 5% that cannot be justified by objective criteria, they will be obligated to implement corrective measures. A national monitoring body is planned to collect data, track trends, and provide preventative oversight, with companies employing 100 or more individuals required to report on the gender pay gap. Bulgaria is advancing preparations to transpose the directive, incorporating its main provisions into the Protection against Discrimination Act and amending the Labor Code.
Minister Efremova emphasized that the goal is preventative fairness rather than punitive action. The implementation of this directive is expected to foster a more equitable and competitive labor market, where commitment to transparency and equality offers a distinct advantage for businesses.
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