The European Union has taken a decisive step towards closing the gender pay gap with the approval of the Pay Transparency Directive, adopted in April 2023. The goal: to ensure the right to equal pay for work of equal value between women and men.
According to Eurostat data, women in the EU still earn, on average, 16% less than men. This disparity affects not only current earnings but also retirement, where the pension gap exceeds 25%. The lack of pay transparency has been one of the biggest obstacles to addressing this issue. Therefore, the new regulation imposes specific obligations on companies.
The EU Approves new gender pay transparency rules: what companies need to know?
What does the new directive require?
Why act now?
Beyond legal compliance, adopting these measures can bring clear benefits to companies:
- Strengthens trust and commitment from internal talent.
- Enhances corporate reputation with investors, customers, and partners.
- Helps build a fairer, more inclusive, and competitive organisational culture.