The EU Pay Transparency Directive is expected to enhance talent acquisition and retention within businesses by establishing clear guidelines and fairness standards regarding remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. Speaking at the Next Level HR forum, Efremova highlighted that while equal pay principles are established in European and Bulgarian law, effective implementation remains a challenge, citing a gender pay gap in Bulgaria exceeding 13% in favor of men. A core component of the directive mandates that employers must specify a salary range in job advertisements and prohibits inquiring about a candidate’s previous pay.
The objective is to prevent the continuation of existing pay disparities by grounding evaluations in objective, gender-neutral criteria covering 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 occupational category. The regulations require employers to take corrective action if a pay gap exceeding 5% cannot be substantiated by objective criteria.
To support this, a national monitoring body is planned to collect and analyze data, track trends, and serve a preventive function. Companies employing 100 or more workers will be obliged to report on the gender pay gap. Efremova noted that Bulgaria is advancing preparations to transpose the directive, integrating its provisions into the Protection against Discrimination Act and amending the Labour Code.
She emphasized that the goal is prevention and achieving fairness rather than solely imposing sanctions. Ultimately, she stated that increased pay transparency will foster a more competitive labor market, providing an advantage to companies committed to equality. Despite this, a recent survey indicated that Bulgarian companies remain cautious regarding new EU regulations concerning pay.
Topics: #pay #transparency #directive
