Press release of the Ministry of Labour and Social Security on Transposition of 2023/970 Pay Transparency Directive
“Your salary should depend on your work and your value, not on your gender.”
The Minister of Labour and Social Security, Niki Kerameus, presented the new draft law of the Ministry of Labour and Social Security titled: “Strengthening the application of equal pay between men and women for equal work or work of equal value, and other provisions – Transposition of Directive (EU) 2023/970.”
The new draft law introduces, for the first time, a comprehensive framework for pay transparency, both before hiring and during the employment relationship.
Recruitment process
During the recruitment process, the employer will be required to inform the candidate about the salary or salary range for the position, as well as the relevant collective agreement, where one exists.
Employers will not be allowed to ask candidates about their previous earnings. The recruitment process must also be gender-neutral and free from discrimination.
Collective labour agreements
The new framework is also linked to efforts to strengthen collective labour agreements.
When a collective labour agreement applies, it is presumed in principle that there are no unjustified pay discriminations.
Collective labour agreements may also be used as the basis for creating pay structures within companies.
Audits of the Labor Inspectorate
Employers will still be required to adjust job categories so that the value of work within the organisation is properly reflected. The Labour Inspectorate retains its full right to conduct inspections and impose fines where violations are found.
Documentation on pay structures
Businesses will also be required to maintain documented pay structures based on objective and gender-neutral criteria, with a clear process for evaluation and review. Employees will be able to request information both about their individual pay level and about the average pay of men and women for equal work or work of equal value, without identifying individuals.
Internal gender pay gap audit
An internal gender pay gap audit is also established within companies. Businesses will be required to submit data on the pay gap between men and women, the bonus pay gap, the median pay gap, and the pay gap by category of employees. This obligation will apply annually to companies with 250 or more employees and every three years to smaller companies in specific categories.
Corrective measures
If a pay difference of 5% or more is identified without an objective explanation, the employer will be required to proceed with corrective measures and restructure the company’s pay system.
Judicial protection for employees
The draft law also significantly strengthens judicial protection for employees. If an employee believes that discrimination exists, they have the right to request salary data, go to court, and be represented by a trade union or equality body.
Salary transparency
The new framework brings greater salary transparency, better information before and after hiring, checks on unfair pay differences, and correction of problems when inequalities are identified. At the same time, employee protection is strengthened through stronger rights and more effective handling of unequal treatment cases.
It is worth noting that, so far, Minister Kerameus has incorporated into the draft law under preparation 65 proposals submitted by national social partners, employee representatives, and employer representatives.