MEPs approve rules to force companies to publish gender pay gap

Members of the European Parliament on Thursday gave their closing approval to the pay transparency directive that may drive some employers to reveal common salaries damaged down by gender in a bid to shut the gender pay hole. 

“As we speak is a historic day. We have reached an enormous milestone in Europe for girls’s rights, for employees rights, and for the struggle towards pay discrimination,” Danish MEP Kira M. Peter-Hansen (Greens), one of many rapporteurs of the legislation, instructed journalists after the vote.

Beneath the brand new guidelines adopted by MEPs by 427 votes to 79 towards and 76 abstentions, employers will now should disclose a pay vary both on job adverts or earlier than an interview takes place. They can even be required to offer full info on particular person and common pay ranges, damaged down by gender, when requested by an worker.

Employers with a minimum of 100 staff can even should publish info on the pay hole between feminine and male employees each three years, with bigger employers requested to take action extra frequently.

If the pay hole they report is of a minimum of 5%, employers should perform a pay evaluation in cooperation with employees’ representatives.

“To European corporations we are saying: present your true colors,” Dutch MEP Samira Rafaela (Renew), additionally a rapporteur on the legislation, instructed the post-vote press convention.

“We don’t enable pay secrecy anymore with this laws as a result of secrets and techniques are the easiest way to maintain inequality alive. And we would like individuals to ask and demand info and we would like the data to turn out to be public. That may occur so we are able to maintain corporations accountable.”

The directive additionally shifts the burden of proof on employers in case of a pay dispute and opens the door to compensation for employees who’ve suffered gender pay discrimination equivalent to pack pay, bonuses and different funds in form. 

EU international locations are in the meantime urged to ascertain particular penalties for infringements of the equal pay rule, together with fines.

The gender pay hole within the EU stood at almost 13% in 2021, which means ladies earn, on common, 13% much less per hour than males. Estonia, Austria and Germany have the very best pay gaps within the bloc with charges of 20.5%, 18.% and 17.6% respectively. Slovenia, Romania and Luxembourg (in flip 3.8%, 3.6% and -0.2%) have the bottom pay gaps. 

Among the causes that specify the gender pay hole embody the overrepresentation of ladies in comparatively low-paying sectors together with care, well being and training, extra time spent on unpaid work equivalent to childcare and chores that may influence profession decisions, the so-called glass ceiling resulting from fewer ladies in managerial positions and pay discrimination.

Romanian MEP Dragoș Pîslaru (Renew), chair of the Employment and Social Affairs Committee, instructed reporters this “hole has a long-term influence on ladies’s high quality of life, growing the chance of poverty and chronic pension pay hole that’s 33% these days”.

He referred to as on EU international locations to “totally and well timed implement this directive”.

Member states now should formally approve the settlement.