EU Implements New Pay‑Transparency Rules to Cut Gender Wage Gap

From Sunday, the European Union is applying Directive 2023/970, which obliges employers to disclose the starting salary or salary range in job advertisements and to provide employees, on request, with information about their own pay and the average pay by gender for comparable roles. Companies with 100 or more workers must publish data on gender pay gaps and, if the gap exceeds five percent without justification, carry out a pay‑assessment. Victims of pay discrimination can claim compensation, and employers that fail to comply face sanctions.

The rules aim to reduce the EU’s average gender wage gap of 11.1 percent – currently 6.6 percent in Croatia – by increasing transparency and shifting the burden of proof onto employers. Croatia is finalising national legislation to transpose the directive, which could affect up to 1,900 larger firms. EU officials stress that clear guidance and effective monitoring are essential for the measures to achieve lasting equality in pay and related pension benefits.