EU Sources - European Parliament votes in favour of the EU pay transparency directive - March 31, 2023

A large majority in the European Parliament voted in favour of adopting the EU pay transparency directive aiming to narrow the EU gender pay gap. The directive, proposed by the Commission in March 2021, will now need to be formally adopted by member states and transposed into national law within three years after entering into force. The directive seeks to make salaries more transparent by obliging companies with more than 100 employees to report and fix their wage disparities, in a bid to narrow the EU gender pay gap, which currently stands at 12.7%. Employers will need to take corrective measures if the pay gap exceeds 5% without justifications, while employees will have the right to access sex-disaggregated salary data and the criteria used to define salary and pay rises, which will need to be gender-neutral.

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