EU Pay Transparency Directive: 'Equal Pay For Equal Work Or Work Of Equal Value'

The European Union's pay transparency directive (Directive (EU) 2023/970) introduced the principle of “equal pay for equal work or work of equal value,” aiming to eliminate pay discrimination under the obligation that job roles of equal worth receive equal pay, regardless of gender.

Quick Hits

• In the EU, pay transparency has been identified as a key obstacle to closing the gender pay gap. Directive (EU) 2023/970 aims to close the gender pay gap and promote fair pay practices by increasing transparency and accountability between employers and employees.
• The principle of “equal value” will require employers to undertake an evaluation exercise to determine where equivalence of the respective value of roles may exist across their organisations. Employers may want to consider preparing for this now.