Directive (EU) 2023/970 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms

Summary:

Directive (EU) 2023/970 - adopted by the co-legislators on 10 May 2023 - seeking to ensuring that women and men in the European Union (EU) get equal pay for equal work. This is a text with EEA relevance.

Further information:

This Directive lays down minimum requirements to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women, and the prohibition of discrimination, in particular through pay transparency and reinforced enforcement mechanisms. The requirement to ensure equal pay is set out in Directive 2006/54/EC as complemented by the 2014 Commission Recommendation on pay transparency.

The draft law was adopted by the European Commission on 4 March 2021. Despite the existing legal framework, the effective implementation and enforcement of this principles in practice was still regarded as a challenge in the European Union (EU). Co-legislators called for further action on this matter, and pay transparency was among the political priorities laid out by the President of the European Commission in 2019. It was also highlighted in the Gender Equality Strategy 2020-2025.

The Council of the European Union adopted a general approach on 6 December 2021. The plenary of the European Parliament endorsed a negotiating position on 5 April 2022. An informal agreement between the co-legislators on a compromise text for this file was reached on 15 December. This was formally endorsed by the Parliament on 30 March 2023 and by the Council on 24 April. The Act was signed by the co-legislators on 10 May 2023 and published in the Official Journal on 17 May 2023.

Official

EUR-LEX: COM(2021)93: Proposal for a Directive to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:93:FIN

EUR-LEX: SWD(2021)41: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:41:FIN

EUR-LEX: SWD(2021)42: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:42:FIN

European Parliament: Legislative Observatory: Procedure FIle for Proposal on Equal pay for equal work between men and women (pay transparency and enforcement mechanisms) (2021/0050(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2021/0050(COD)

European Parliament: Legislative Train Schedule: Binding pay transparency measures https://www.europarl.europa.eu/legislative-train/theme-a-new-push-for-european-democracy/file-binding-pay-transparency-measures

European Commission: Policies: EU action for equal pay https://commission.europa.eu/strategy-and-policy/policies/justice-and-fundamental-rights/gender-equality/equal-pay/eu-action-equal-pay_en

General Secretariat of the Council: Policies: Pay transparency in the EU https://www.consilium.europa.eu/en/policies/pay-transparency/

European Commission: Press Release, 04/03/2021: Pay Transparency: Commission proposes measures to ensure equal pay for equal work https://ec.europa.eu/commission/presscorner/detail/en/ip_21_881

European Commission: Questions and Answers – Equal pay: Commission proposes measures on pay transparency to ensure equal pay for equal work (4 March 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_961

European Commission: Opening remarks by Vice-President Jourová on the proposal for a directive to strengthen the application of the principle of equal pay for equal work through pay transparency and enforcement mechanisms (4 March 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1032

European Commission: Opening remarks by Commissioner Dalli on the proposal for a directive to strengthen the application of the principle of equal pay for equal work through pay transparency and enforcement mechanisms (4 March 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1033

EPP Group: Newsroom, 04/03/2021: Gender pay transparency paves way for equality https://www.eppgroup.eu/newsroom/news/gender-pay-transparency-paves-way-for-equality

Greens/EFA EP Group: Dossier, 30/09/2021: Show us the money! Here’s how pay transparency can close the gender pay gap https://www.greens-efa.eu/dossier/heres-how-pay-transparency-can-close-the-gender-pay-gap/

Council of the European Union: Press Release, 06/12/2021: Council agrees on common position to tackle gender pay gap https://www.consilium.europa.eu/en/press/press-releases/2021/12/06/council-agrees-on-common-position-to-tackle-gender-pay-gap/

S&D EP Group: Newsroom, 17/03/2022: S&Ds push for strong pay transparency rules to close the gender pay gap https://www.socialistsanddemocrats.eu/newsroom/sds-push-strong-pay-transparency-rules-close-gender-pay-gap

Renew Europe EP Group: Newsroom, 17/03/2022: Pay transparency will help end the unjustified pay gap between men and women https://www.reneweuropegroup.eu/news/2022-03-17/pay-transparency-will-help-end-the-unjustified-pay-gap-between-men-and-women

European Parliament: Press Release, 05/04/2022: Gender pay gap: Parliament backs binding pay-transparency measures https://www.europarl.europa.eu/news/en/press-room/20220401IPR26532/

Greens/EFA EP Group: Press Release, 05/04/2022: European Parliament votes in favour of closing the gender pay gap https://www.greens-efa.eu/en/article/press/european-parliament-votes-in-favour-of-closing-the-gender-pay-gap

Council of the European Union: Press Release, 15/12/2022: Council and European Parliament reach provisional deal to close gender pay gap https://www.consilium.europa.eu/en/press/press-releases/2022/12/15/council-and-european-parliament-reach-provisional-deal-to-close-gender-pay-gap/

European Parliament: Press Release, 15/12/2022: Gender pay gap: deal reached on binding pay-transparency measures https://www.europarl.europa.eu/news/en/press-room/20221212IPR64524/

European Commission: Press Release, 15/12/2022: Commission welcomes the political agreement on new EU rules for pay transparency https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7739

Renew Europe EP Group: Newsroom, 15/12/2022: Pay transparency deal: smash the glass ceiling - equal pay for equal work! https://www.reneweuropegroup.eu/news/2022-12-15/pay-transparency-deal-smash-the-glass-ceiling-equal-pay-for-equal-work

European Commission: Equal pay: Commission statements ahead of the European Parliament's vote on pay transparency rules (29 March 2023) https://ec.europa.eu/commission/presscorner/detail/en/statement_23_2043

European Parliament: Press Release, 30/03/2023: Gender pay gap: Parliament adopts new rules on binding pay-transparency measures https://www.europarl.europa.eu/news/en/press-room/20230327IPR78545/

EPP EP Group: Newsroom, 30/03/2023: EU puts money back in women's pockets with new pay transparency https://www.eppgroup.eu/newsroom/news/eu-puts-money-back-in-women-s-pockets-with-pay-transparency

Council of the European Union: Press Release, 24/04/2023: Gender pay gap: Council adopts new rules on pay transparency https://www.consilium.europa.eu/en/press/press-releases/2023/04/24/gender-pay-gap-council-adopts-new-rules-on-pay-transparency/

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News

Reuters, 03/03/2021: EU to propose that companies report on gender pay gap https://www.reuters.com/article/idUSKBN2AV284

Bloomberg, 04/03/2021: Employers May Be Barred From Asking Candidates’ Pay by EU Rules https://www.bloomberg.com/news/articles/2021-03-04/employers-may-be-barred-from-asking-candidates-pay-by-eu-rules

The Independent (UK), 04/03/2021: EU proposes fix for gender pay gap: Show me the money! https://www.independent.co.uk/news/eu-proposes-fix-for-gender-pay-gap-show-me-the-money-gender-pay-gap-eu-ap-staff-employers-b1812384.html

Euronews, 04/03/2021: EU unveils plan to force companies to publish wages to help close gender pay gap https://www.euronews.com/2021/03/04/eu-unveils-plan-to-force-companies-to-publish-wages-to-help-close-gender-pay-gap

EUObserver, 05/03/2021: EU wants large firms to report on gender pay-gap or face fines https://euobserver.com/political/151135

Social Europe, 24/02/2022: Performance-related pay and the gender pay gap https://www.socialeurope.eu/performance-related-pay-and-the-gender-pay-gap

The Brussels Times, 05/04/2022: Mind the gender pay gap: EU Parliament votes on pay transparency https://www.brusselstimes.com/215151/mind-the-gender-pay-gap-the-eu-parliament-votes-on-pay-transparency

EurActiv, 07/10/2022: EU negotiators discuss scope of pay transparency directive https://www.euractiv.com/section/economy-jobs/news/eu-negotiators-discuss-scope-of-pay-transparency-directive/

EurActiv, 14/12/2022: EU institutions prepare to close on pay transparency negotiations https://www.euractiv.com/section/economy-jobs/news/eu-institutions-prepare-to-close-on-pay-transparency-negotiations/

The Brussels Times, 16/12/2022: EU takes important steps to end gender pay discrimination https://www.brusselstimes.com/337874/eu-takes-action-gender-pay-gap-discrimination

The Irish Times, 19/03/2023: Pay transparency directive should be applied to smaller employers, says Ictu https://www.irishtimes.com/ireland/2023/03/19/pay-transparency-directive-should-be-applied-to-smaller-employers-says-ictu/

The Brussels Times, 31/03/2023: EU to force employers to be more transparent with recruitment and wages https://www.brusselstimes.com/436857/eu-to-force-employers-to-be-more-transparent-with-recruitment-and-wages

EurActiv, 24/04/2023: Pay transparency directive gets final approval https://www.euractiv.com/section/economy-jobs/news/pay-transparency-directive-gets-final-approval/

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Commentary and Analysis

European Policy Centre (EPC): Commentary, 08/03/2021: The Pay Transparency Directive: One small step for womankind https://www.epc.eu/en/publications/The-Pay-Transparency-Directive-One-small-step-for-womankind~3c70a8

Mercer: Law and Policy Group, 09/03/2021: EU employers face pay transparency disclosure mandates https://www.mercer.com/our-thinking/law-and-policy-group/eu-employers-face-pay-transparency-disclosure-mandates.html

European Trade Union Confederation (ETUC): Press Release, 18/06/2021: MEPs support trade union protest for stronger Gender Pay Transparency Directive https://www.etuc.org/en/pressrelease/meps-support-trade-union-protest-stronger-gender-pay-transparency-directive

European Disability Forum (EDF-FEPH): Publications, 21/06/2021: EDF proposals for amendments to the Pay Transparency Directive https://www.edf-feph.org/publications/edf-proposals-for-amendments-to-the-pay-transparency-directive/

The Conversation, 05/07/2021: Will pay transparency close the gender pay gap? The EU thinks so https://theconversation.com/will-pay-transparency-close-the-gender-pay-gap-the-eu-thinks-so-162708

European Parliamentary Research Service (EPRS): Briefing, 22/07/2021: Application of the equal pay principle through pay transparency measures - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2021)662647

Centre for European Policy Studies (CEPS): Policy Insights No 6, 08/03/2022: Can the Pay Transparency Directive close the gender pay gap? https://www.ceps.eu/ceps-publications/can-the-pay-transparency-directive-close-the-gender-pay-gap/

Pinsent Masons: Out-Law Guide, 29/03/2022: The potential impact of the EU's Pay Transparency Directive https://www.pinsentmasons.com/out-law/guides/the-potential-impact-of-the-eus-pay-transparency-directive

European Trade Union Confederation (ETUC): Press Release, 05/04/2022: Parliament backs stronger gender pay transparency directive https://www.etuc.org/en/pressrelease/parliament-backs-stronger-gender-pay-transparency-directive

Politico, 01/06/2022: Does gender pay transparency work? https://www.politico.eu/article/pay-transparency-pay-off-gender-gap/

Ernst&Young (EY): Article, 09/06/2022: How companies can prepare for a new era of gender pay gap reporting https://www.ey.com/en_lu/tax/how-companies-can-prepare-for-gender-pay-gap-reporting

Deloitte: Legal Blog (UK), 13/07/2022: EU Pay Transparency Directive https://legalbriefs.deloitte.com/post/102hsrl/eu-pay-transparency-directive

Euronews: Next, 31/08/2022: Pay transparency can help close the gender pay gap but at what cost? https://www.euronews.com/next/2022/08/31/pay-transparency-can-help-close-the-gender-pay-gap-but-at-what-cost

Social Europe, 03/01/2023: Pay transparency yes, but we need more for equal pay https://www.socialeurope.eu/pay-transparency-yes-but-we-need-more-for-equal-pay

The New Statesman, 10/01/2023: What would happen if everyone knew your salary? https://www.newstatesman.com/business/2023/01/pay-transparency-happen-everyone-know-salary

HR Policy Association: News, 13/01/2023: EU Approves Pay Transparency Directive https://www.hrpolicy.org/insight-and-research/resources/2023/hr-workforce/public/01/eu-approves-pay-transparency-directive/

Confederation of Swedish Enterprise, 30/01/2023: The Pay Transparency Directive may harm the Swedish wage formation model https://www.svensktnaringsliv.se/english/the-pay-transparency-directive-represents-a-threat-to-the-swedish_1194783.html

Labour Research Department (LRD): Workplace Report, 16/02/2023: Gender pay transparency directive gets go ahead https://www.lrd.org.uk/free-read/gender-pay-transparency-directive-gets-go-ahead

Linklaters: Sustainable Futures Blog, 21/02/2023: EU: the Pay Transparency Directive, a few steps away from being voted https://sustainablefutures.linklaters.com/post/102i87o/eu-the-pay-transparency-directive-a-few-steps-away-from-being-voted

European Policy Centre (EPC): Commentary, 08/03/2023: Gender equality: No time to rest https://www.epc.eu/en/Publications/Gender-equality-No-time-to-rest~4ee738

European Parliamentary Research Service (EPRS): Briefing, 08/03/2023: Equal pay for equal work between men and women: Pay transparency and enforcement mechanisms https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)698934

European Parliamentary Research Service (EPRS): At a Glance, 27/03/2023: Equal pay for equal work between men and women https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)745699

EurActiv: Opinion, 30/03/2023: To smash the glass ceiling, the EU needs pay transparency https://www.euractiv.com/section/economy-jobs/opinion/to-smash-the-glass-ceiling-the-eu-needs-pay-transparency/

Pinsent Masons: Out-Law Analysis, 31/03/2023: The EU Pay Transparency Directive and how rules compare across borders https://www.pinsentmasons.com/out-law/analysis/eu-pay-transparency-directive

The Conversation, 16/05/2023: Gender pay gap: how new EU pay transparency laws will make men and women’s wages more equal https://theconversation.com/gender-pay-gap-how-new-eu-pay-transparency-laws-will-make-men-and-womens-wages-more-equal-203257

Lewis Silkin: Insights, 17/05/2023: Gender pay gap reporting in Europe: Pay Transparency Directive now finalised https://www.lewissilkin.com/en/insights/gender-pay-gap-reporting-in-europe-pay-transparency-directive-set-to-come-into-force-in-2023

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