The EU Pay Transparency Directive is expected to improve talent attraction and retention for businesses by establishing clearer rules and greater fairness regarding remuneration, according to Deputy Labour and Social Policy Minister Nataliya Efremova. While equal pay between genders is already mandated by European and Bulgarian law, effective implementation remains a challenge, evidenced by Bulgaria’s gender pay gap exceeding 13%. Key provisions of the directive include requiring employers to publish salary ranges in job advertisements and banning the practice of inquiring about a candidate’s previous pay.
The objective is to prevent the continuation of existing pay disparities by focusing evaluations on objective, gender-neutral criteria: skills, effort, responsibilities, and working conditions. Furthermore, the directive guarantees employees the right to information, allowing them to access data on average pay levels within their occupational category. Employers must take remedial action if a pay gap exceeding 5% cannot be justified by objective criteria.
A national monitoring body will be established to analyze data, track trends, and provide preventive oversight. Companies employing 100 or more workers will be required to report on the gender pay gap. Bulgaria is reportedly advancing preparations to transpose the directive, incorporating its main elements into the Protection against Discrimination Act and amending the Labour Code.
The approach aims to ensure effective compliance without imposing undue burdens on businesses. The core philosophy of the directive emphasizes prevention and achieving fairness through pay transparency. Implementing these changes is anticipated to foster a more competitive labor market, providing an advantage to companies that prioritize equality and transparency.
Topics: #pay #transparency #directive
