The EU Pay Transparency Directive is expected to enhance talent attraction and retention within businesses by establishing clearer rules and promoting fairness in remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. While equal pay between genders is already mandated by European and Bulgarian legislation, effective implementation remains a challenge, evidenced by Bulgaria’s gender pay gap exceeding 13% in favor of men. Key changes introduced by the directive include the requirement for employers to advertise salary ranges and a ban on inquiring about a candidate’s previous pay.
The primary goal is to prevent the continuation of existing pay disparities by emphasizing objective and gender-neutral criteria for job evaluation, focusing on skills, effort, responsibilities, and working conditions. Furthermore, the directive guarantees employees the right to information regarding average pay levels within their job category. Employers must address any identified pay gap exceeding 5% if it cannot be substantiated by objective criteria.
The framework also mandates that companies with 100 or more employees report on the gender pay gap, supported by a planned national monitoring body to track trends. Bulgaria is reportedly advanced in preparing to incorporate the directive’s provisions into the Protection against Discrimination Act and the Labour Code. Minister Efremova emphasized that the objective is prevention and achieving fairness, stating that remuneration is the clearest measure of work value.
Implementing this level of pay transparency is anticipated to foster a more competitive labor market, allowing companies that prioritize equality to gain an advantage in staffing. Despite these regulatory shifts, a regional survey indicated that Bulgarian companies remain cautious regarding new EU-level pay transparency regulations.
Topics: #pay #transparency #directive
