EU Pay Transparency Directive

The European Union's Pay Transparency Directive, adopted in 2023, aims to significantly reduce the gender pay gap across member states. The directive mandates greater transparency in pay structures by requiring employers with more than 100 employees to report on gender-based pay disparities. Employers must disclose information about the gender pay gap and are obligated to act when discrepancies exceed 5%. Additionally, job applicants have the right to information regarding the initial pay level or pay range for positions they're applying to. The directive also establishes robust enforcement measures, including fines and compensation for employees affected by unequal pay.

This directive represents a significant step toward achieving gender equality by ensuring transparency, accountability, and fairness in workplace compensation across the EU.