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Salary transparency has become one of the most significant topics on the national legislative agenda, given the upcoming deadline for the transposition of Directive (EU) 2023/970 – 7 June 2026. The purpose of the new regulation is to ensure the effective application of the principle of equal pay for equal work or work of equal value and to reduce the gender pay gap.
In our view, these objectives are already implicitly addressed under the existing national legislation, namely Law No. 202/2002 on equal opportunities and treatment for women and men, and Government Ordinance No. 137/2000 on preventing and sanctioning all forms of discrimination.
Nevertheless, European legislation introduces additional provisions which, at least in theory, should facilitate the reduction of gender-based pay disparities.
Although the intention of the European legislator is clear, the level of preparedness within the business environment remains limited. Recent studies show that only approximately 16% of companies in Romania consider that they have salary transparency policies applicable to the recruitment process and human resources management.
While there is still no draft national legislation in the legislative pipeline, it is essential for employers to understand the upcoming obligations and their practical impact. However, prudence suggests waiting for the draft transposition act.
Key obligations introduced by the Directive
- Salary transparency for job candidates
Employers will be required to inform candidates of the initial level of remuneration or the salary range applicable to the position, established based on objective and gender-neutral criteria. This information must be provided before the interview – either through the job advertisement or by another means that enables candidates to negotiate knowingly. Thus, the calculation must consider the average within the company for similar positions, regardless of the employee’s gender.
- Transparency of Pay Levels
Companies will be required to make available to employees the criteria used to determine salaries and pay progression (e.g., skills, responsibility, working conditions). These criteria must be documented, communicated, applied consistently, and must not take gender into account.
Additionally, upon request, the employer must provide: (i) the employee’s own remuneration level, and (ii) the average remuneration levels for comparable categories of workers, broken down by gender.
Note: The Directive does not require disclosure of individual salaries, but only aggregated, comparable data.
- Reporting on pay gaps
The Directive introduces a proportionate reporting mechanism: larger companies must report more frequently. The Directive clearly establishes thresholds and deadlines, while Member States may choose to introduce additional thresholds or stricter requirements.
- Mandatory remedial measures
If pay reporting reveals a gap of at least 5% that cannot be justified by objective criteria, companies will be required to conduct a pay assessment together with employee representatives and, where applicable, adopt corrective measures. In practice, adjustments will need to be made upward.
Practical recommendations for Romanian companies
In light of these new obligations, the question arises as to what employers in Romania should concretely do?
Although, as mentioned, there is still no draft legislative act entering the legislative process to transpose the Directive, based on the European provisions, here are several measures to consider.
The first necessary step is to carry out an internal pay audit, through which employers analyze pay differences between comparable positions, identify any discrepancies that lack an objective justification, and prepare, if needed, a correction plan.
It is also essential to review internal documentation. This involves updating job descriptions, clarifying the criteria for remuneration and promotion, as well as documenting the methodology for job evaluation, so that all criteria used are transparent and gender neutral.
The recruitment process will also need to be adapted. Employers will be required to include salary ranges in job advertisements and to clearly communicate the remuneration criteria, providing candidates with the information necessary for an informed negotiation.
Last but not least, companies should update their internal regulations and HR procedures so that they can respond uniformly and in a documented manner to employees’ requests for salary information. Developing clear policies on pay transparency will facilitate both legal compliance and the strengthening of a climate of trust within the organization.
In conclusion, the transposition of the Directive will significantly change the way companies in Romania manage remuneration and recruitment. To ensure compliance and avoid legal risks, employers must begin preparations early: conducting a pay audit, defining objective remuneration criteria, and updating internal policies. The impact on the business environment will be substantial, involving increased transparency obligations, robust salary data systems, and possible corrective measures in the case of unjustified differences. The transposition deadline (June 7, 2026) makes it necessary to initiate these steps in advance.
Authored by Andrei Albulescu, Head of Employment, and Alexandra Păduraru, Senior Associate at Stratulat Albulescu Attorneys at Law.