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%.Įmployers will need to take corrective measures if the pay gap exceeds 5% without justifications, while employees will have the right to access sex-disaggregated data on salary and know the criteria used to define salary and pay rises, which will need to be gender-neutral. The directive, proposed by the Commission in March 2021, will now need to formally be adopted by member states and transposed into national law within three years after entering into force. “With this vote, we abolish pay secrecy, strengthen workers’ rights and workers’ individual right to information,” member of Parliament and co-rapporteur of the directive, Kira Marie Peter-Hansen (Greens), said during a plenary debate before the vote.

A large majority in the European Parliament voted in favour of adopting the EU’s pay transparency directive aiming to narrow the EU gender pay gap during a plenary session on Thursday (30 March).

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