Timeline pay transparency

The Council has adopted new rules to combat pay discrimination and help close the gender pay gap in the EU.

Under the pay transparency directive, EU companies will be required to share information about how much they pay women and men for work of equal value, and take action if their gender pay gap exceeds 5%.

The new directive also includes provisions on compensation for victims of pay discrimination and penalties, including fines, for employers who break the rules.

The pay transparency directive will come into force upon publication in the EU’s Official Journal. EU countries will then have up to three years to 'transpose' the directive by adapting their national legislation to take account of the new rules.

• Gender pay gap: Council adopts new rules on pay transparency (press release, 24 April 2023)

The Czech presidency and the European Parliament reached a provisional deal on pay transparency rules. 

Negotiations with the European Parliament to agree on a common text were kicked-off in June 2022. The present agreement was reached during the fifth round of negotiations.

• Council and European Parliament reach provisional deal to close gender pay gap (press release, 15 December 2022)

The Council agrees on a general approach on new draft EU rules on pay transparency. 

The proposed law comprises a set of binding measures on pay transparency, including:

• employers need to indicate the initial pay level or range to be paid to the future worker
• employers have to make accessible for their employees which - objective and gender-neutral - criteria are used to define their pay and career progression
• workers and their representatives have the right to receive information on their individual pay level and the average pay levels for workers doing the same work or work of equal value, broken down by sex

• Employment, Social Policy, Health and Consumer Affairs Council, 6-7 December 2021
• Council agrees on common position to tackle gender pay gap (press release, 6 December 2021)

The European Commission, responding to the Council's call of June 2019 to develop concrete measures to increase pay transparency, presents a proposal for a directive on strengthening 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.

The directive aims:

• to lay down minimum requirements for strengthening the application of the principle of equal pay for men and women to equal work or work of equal value
• to eliminate the discrimination on the grounds of sex through strengthening the transparency of pay systems
• to enhance enforcement of the rights and obligations relating to equal pay

• Pay Transparency: Commission proposes measures to ensure equal pay for equal work (European Commission press release, 4 March 2021)
• Proposal for a directive on pay transparency to strengthen the principle of equal pay

The Council adopts conclusions on key policies and measures aimed at closing the gender pay gap. The conclusions recognise that equality between men and women is a fundamental principle of the European Union enshrined in the Treaties.

The conclusions call on member states and the Commission to examine and improve all available measures or to introduce new ones with a view to:

• ensuring the effective enforcement of the legal principle of equal pay for equal work or work of equal value at the national level
• promoting equality in education and employment in order to address labour market segregation
• facilitating the reconciliation of work, family and private life for both women and men

• Closing the gender pay gap: Council conclusions (press release, 13 June 2019)
• Council conclusions on closing the gender pay gap: key policies and measures, 13 June 2019