EU pay transparency directive to be implemented in Croatia

The European Union is implementing a pay transparency directive aimed at closing the gender pay gap, where women currently earn an average of 89 cents for every euro earned by men. In Croatia, these changes are expected to be integrated into a new Labor Law, with implementation slated for February.

The directive seeks to eliminate the lack of transparency that currently prevents employees from identifying and challenging unequal pay. Under the new rules, employers will be prohibited from using contractual clauses that prevent workers from disclosing their salaries. While workers will not be able to see the exact individual salaries of their colleagues, they will gain the right to access information regarding the average pay of men and women performing work of equal value.

To ensure compliance, the directive mandates that member states introduce effective and dissuasive penalties for employers. In Croatia, employers who fail to comply with job classification and pay reporting requirements will face misdemeanor sanctions. Furthermore, the law will empower workers to seek compensation or equal pay through the courts if discrepancies are found. The gender pay gap for work of equal value must not exceed five percent.