Mind The Gap – The Directive On Pay Transparency Has Been Adopted

The European Commission's Directive on Pay Transparency Measures (the "Directive") has been formally adopted and published. The Directive enters into force on 6 June 2023 and must be implemented into the national legislation within three years and into each company within a fourth year.

Under the new rules, public gender pay gap reporting becomes compulsory for many private and public employers operating in the European Union. Further, the Directive provides for more transparency, effective enforcement, and access to justice to ensure one of the founding principles of the European Union, equal pay between male and female workers, irrespective of the employer's size.

Impacts