EU puts money back in women's pockets with new pay transparency

Companies will soon have to disclose salary information to employees and thus expose potential gender pay gaps. The European Parliament will vote for these new transparency rules today. "The gender pay gap stands at 13% in the EU. This means that women would have to work 1.5 months more to make up the difference. The Pay Transparency Directive will lead to fairer workspaces", said Sirpa Pietikäinen MEP, the EPP Group's negotiator for the new law in the Women's Rights Committee.

When the new transparency rules come into force, it will be the company's obligation to advertise the proposed salary when advertising a job. "This tackles pay disparities from the very start of one's career within a company. Besides equal pay for equal work, it encourages women to be ambitious. Having more women in the workplace, also in higher positions, leads to diversity that is always good for businesses, good for our economy and good for our society as a whole", Pietikäinen continued.

"Disparities in salary affect women’s financial well-being and independence, especially when you realise that the gender pension gap in the EU is even wider and stands at 30%. We need to eradicate the pay gap in Europe. Enough is enough", added Maria Walsh MEP, the EPP Group's negotiator in the Employment and Social Affairs Committee. "This agreement is a landmark for gender equality. The new rules put money back into the pockets of women across Europe and will make a fundamental positive impact on our job market."

The EPP Group also recognises the financial implications for business. "This is why we’ve made sure that the measures include the so-called 'staircase model' to ease the burden and help smaller companies adopt the pay transparency measures gradually, step by step", added Walsh. Companies with fewer employees get more time to comply with the new rules, allowing them to implement the necessary changes without being disproportionately burdened by administrative or financial strains.