Portugal implements EU salary transparency directive

Portugal is currently transposing a European Union directive aimed at increasing salary transparency to combat persistent gender pay gaps. Susana Afonso, a lawyer at CMS, warns that the new rules will likely lead to an increase in employees requesting information regarding practiced remunerations.

Afonso emphasizes the need for training for both managers and workers to clarify what specific information can be legally requested. While the directive aims for greater transparency, she notes that employees will still not be able to demand to know the exact salary of a specific colleague performing the same functions.

Regarding the gender pay gap, Afonso states that every company analyzed thus far has shown some level of disparity, despite many employers believing they do not have a gap. While Portugal has faced delays in transposing the directive, the existence of existing legislation on gender wage inequality may mitigate the risk of penalties from Brussels.