New EU directives mandate pay transparency, affecting labor laws across Europe with varying levels of preparation.
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New regulations will require employers to not only disclose salaries in job advertisements but also to equalize pay for jobs of equal value, regardless of gender. Employees will be able to request information about their pay and compare it to colleagues, and discuss criteria for career and salary changes, which must be gender-neutral. Furthermore, employers will be prohibited from asking candidates about their current or past salary. In Lithuania, preparation is chaotic; while the Ministry of Social Security and Labour has formed a working group, there is a lack of clarity for businesses. Experts note that while some companies are addressing pay structures, categorizing job roles by equal organizational value remains difficult, as current methodologies are outdated. The State Labour Inspectorate states that while salary disclosure in ads is implemented, the main issue is unclear compensation systems and employee dissatisfaction with pay. In France, 45% of companies are worried about the directive, though employees are largely positive, with 60% expecting reduced gender pay gaps. French unions are pushing to limit the directive’s scope. Spain is implementing national regulations, including salary registers and audits, though salary transparency remains low in practice. Bulgaria has made little progress, with government officials expressing concern over the expanded duties for employers, particularly for small and medium-sized enterprises. In the Czech Republic, the Labor Code is being amended to allow employees to discuss pay, but over 60% of companies do not yet comply with the EU directive, and the gender pay gap remains significant. Austria anticipates the directive will help close its large gender pay gap, which is among the highest in Europe, despite previous internal reporting requirements not achieving significant change.
