On March 30th, the European Parliament approved a new salary transparency directive aimed at narrowing the gender pay gap across the European Union. With a large majority of MEPs voting in favor of adopting the directive, this new legislation will force companies with more than 100 employees to report and address their wage disparities. This measure is being seen as a major step towards reducing the EU gender pay gap, which currently stands at 12.7%.

The details of the Salary Transparency Directive

The directive will also ensure that job seekers have access to information on the pay ranges of positions they apply for, while employers will no longer be able to ask about previous pay, limiting the possibility of candidates’ salary history influencing the pay offered to them.

How will it work?

Companies with more than 100 employees are required to publish information on the pay gap between male and female employees. As well as the average salary for each gender, under the new pay transparency directive. Employers must take corrective action if the pay gap exceeds 5% without justification. Such as when men and women perform the same work at the same level but are paid differently.

The impact of the Directive

Now more than ever, it is important to have a great compensation strategy ready. The new pay transparency directive in the EU is a clear indication that employers need to take equal pay seriously. And ensure that they are complying with the new legislation. The TalentUp Salary Platform can help employers follow the new rule. Plus, make sure they pay their employees at a competitive level. Try TalentUp today and take the first step towards pay equality and transparency.