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

The European Union Pay Transparency Directive is expected to assist businesses in attracting and retaining talent by establishing clearer standards for remuneration. During a forum, Deputy Labour and Social Policy Minister Nataliya Efremova noted that while equal pay between genders is already codified in both European and Bulgarian law, effective implementation remains difficult, citing a gender pay gap in Bulgaria exceeding 13%. Key provisions within the directive mandate that employers must disclose salary ranges in job advertisements, and the practice of inquiring about a candidate’s previous pay is prohibited.

These measures aim to prevent the continuation of existing inequalities by focusing evaluation criteria on objective, gender-neutral elements: 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 professional category. Employers will be obligated to implement corrective measures if a pay gap exceeding 5% cannot be substantiated by objective criteria.

A national monitoring body is planned to collect and analyze this data, track trends, and perform preventative functions. Companies employing 100 or more workers will be required to report their gender pay gap data. Efremova stated that Bulgaria is advanced in preparing to transpose the directive, integrating its main tenets into the Protection against Discrimination Act and amending the Labour Code.

She emphasized that the goal is prevention and achieving fairness, rather than imposing sanctions. Implementing this increased transparency is intended to foster a more competitive labor market, where adherence to equality standards provides a distinct advantage for companies seeking to build stable teams.

Topics: #pay #transparency #directive