The EU Pay Transparency Directive is anticipated to assist businesses in attracting and retaining staff by establishing clearer rules regarding remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. While existing European and Bulgarian law affirms the principle of equal pay, effective implementation remains a challenge, evidenced by Bulgaria’s gender pay gap exceeding 13% in favor of men. Key provisions within the directive mandate increased salary transparency.
Employers will be required to include a specific salary range in job advertisements, and the practice of querying candidates about their prior pay will be prohibited. The objective is to prevent the continuation of existing inequalities by basing evaluations on objective, gender-neutral criteria covering skills, effort, responsibilities, and working conditions. Furthermore, the directive guarantees employees the right to information regarding average pay levels within their professional category.
If an employer identifies a pay gap exceeding 5% that cannot be justified by objective metrics, the directive requires corrective action. A national monitoring body is also planned to analyze data, track trends, and perform preventative oversight, with companies employing 100 or more individuals obligated to report 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 supplementing the Labour Code.
The focus, she stated, is on prevention and achieving fairness rather than imposing sanctions. The implementation of this directive is expected to foster a more equitable and competitive labor market by institutionalizing pay transparency.
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