06.04.2023

NEW RULES AGAINST THE GENDER PAY GAP

The European Parliament has passed tough rules that will force EU businesses to be transparent about wages to ensure equal pay for women and men, and introduce potential fines for pay discrimination.

According to official data for 2020, women are paid on average nearly 13% less per hour than men for the same work in the 27 countries of the European Union.

Under the new rules, workers can request to know the individual and average pay levels broken down by gender in their workplace.

"Pay secrecy will be prohibited," the parliament said in a statement.

Other rules stipulate that if a company has at least 100 employees, it must regularly publish information on the gender pay gap.

In addition, companies must negotiate with staff representatives if there is a difference of 5%. Persons who violate any of the rules are subject to penalties, including fines. Employees who believe they have been discriminated against can seek compensation.

"Equal work deserves equal pay. And equal pay requires transparency," Ursula von der Leyen, head of the European Commission, said before the vote in parliament.

"Women need to know if their employers are treating them fairly. And when they're not, they should be able to fight back and get what they deserve," she added.

The gender pay gap is different across the bloc. The difference is only 0.7% in Luxembourg, but reaches 15.8% in France and 18.3% in Germany, while in Latvia it is 22.3%.

The Commission, the EU's executive arm, first proposed the rules in March 2021. Before they can be adopted, they must be formally signed off by the European Council, which represents member states. EU countries will then have to start implementing the rules into their national laws within three years of their publication in the bloc's official journal.