EU Directive on Pay Transparency

07.02.23

MMM welcomes a new political decision by the European Parliament and the European Council taken in December 2022, regarding pay transparency measures.

This follows the Commission’s proposal March 2021 of a Directive on Pay Transparency. The agreement establishes new rules that will increase pay transparency, enforcement of the equal pay principle between men and women and make justice more accessible for victims of pay discrimination. These rules will reduce the financial vulnerability of women and mothers, who are at an increased risk of poverty and pay discrimination.

The Directive is part of a more general strategy adopted by the European Commission to combat the gender pay gap and economically empower women. Other measures that have been endorsed at the EU level include: the Work Life Balance Directive of 2019 which came into force in August 2022; the Women on Boards Directive of November 2022 (introducing transparent recruitment procedures in companies, so that at least 40% of non-executive director posts or 33% of all director posts are occupied by women).

The Directive on Pay Transparency has several key elements which can be broken down into pay transparency measures and access to justice for victims of pay discrimination.

Pay transparency measures

Pay transparency for job-seekers and employees

The rules ensure transparency before employment even begins. It requires employers to provide information about pay levels or range before the job interview. Employers will also be banned from asking applicants about their pay history. Once employment has begun, employees will be entitled to access information about average pay levels, broken down by sex for employees doing work of equal value.

Reporting on gender pay gap

Companies with more than 100 employees will be required to publish information about the pay gap between male and female employees. If these reports reveal a pay gap of more than 5% and the difference cannot be explained by gender neutral factors, employers will have to work with workers’ representatives to carry out a pay assessment.

Access to justice for victims of pay discrimination

If an employer is accused of pay discrimination, it will be their responsibility to meet transparency requirements and provide evidence that there was no discrimination. In such legal or administrative proceedings, equality bodies and workers’ representatives may act on behalf of workers. Victims of pay discrimination will be able to receive compensation including back pay and bonuses. Furthermore, Member States will have to establish penalties and fines that directly address violations of the equal pay rule.

What does this mean for mothers?

Women and mothers in Europe are one of the groups most vulnerable based on the gender pay gap. These rules will give mothers more access to information about the pay gap at their place of work and put them in a better position to advocate for their right to equal pay for equal work.

For more information see our answer to the EU Public Consultation of 2020 here.

Most read articles

Leave no single mother Behind: solutions from across the world

05.02.23

UN New York, CSocD61 - The virtual event we are organizing as part of the 2023 UN Commission on Social Development will draw attention to the specificity of the situation

Lire plus

Women at the peace table: international Conference

14.04.23

Make Mothers Matter, together with the city of Ypres, and its grass roots partners Mothers for Peace, Mama Kivu and the Vrouwenraad, is organizing an international peace Conference Women at

Lire plus

Making the case for Gender Equal Parenting: Vital for Early Childhood Development and a transformative tomorrow

04.10.22

At MMM, we believe that sharing the invisible work of caring and educating children more equitably is a quadruple win: essential for early child development (ECD), beneficial for both men

Lire plus
See all the articlesof the category

News from the European delegation

Maternal Mental Health within the New EU Mental health proposal

27.06.23

MMM welcomes the European Commission’s new proposal addressing mental health and bringing a much-needed focus on various aspects of mental well-being. The proposal’s emphasis on mental health promotion, pr

Read more

Care on the move
The forgotten angle

04.04.23

Our Care on the Move conference took place at the European Parliament recently, where speakers from diverse backgrounds, ranging from academics, to policy-makers and representatives from civil society organizat

Read more

Help prepare your child for a happy, successful life
Emotional Intelligence videos for mothers and their families

31.03.23

Emotional intelligence is a vital skill that helps people build healthy and fulfilling relationships, maintain their mental health, make good decisions, and develop leadership skills. Unfortunately, emotional i

Read more

Why Maternal Mental Health Matters

14.03.23

Make Mothers Matter submitted its contribution to the Call for Evidence of the EU Commission on Mental Health.

Read more

Supporting families to meet children’s needs by making quality family support a right for children

07.03.23

Family is the primary social structure through which the needs and rights of children and young people are met and realized. The right to family life as set out by the UNCRC, is a key right for all children and

Read more

Care on the Move: Addressing the Gender Gap

24.02.23

On 28th February 2023, Make Mothers Matter together with partners, is organizing a conference at the European Parliament to tackle the issue of the gender care gap in relation to intra-EU mobility. Featuring Dr

Read more