The EU would close the gender pay gap

By: Trademagazin Date: 2024. 04. 15. 11:37

The European Union directive on wage transparency will soon oblige medium-sized and large companies to provide detailed reports on the salaries of their female and male employees. According to the decision of the European Commission, based on the requested data, the adversely affected employees will even be able to file a lawsuit, EY points out.

Colleagues of the consulting firm encourage companies to examine their organization as soon as possible and, if necessary, to take the steps leading to the elimination of the wage gap. In the EU, men earn on average 13 percent more than women. The directive of the European Commission (EC) intends to change this, as a result of which, from 2027, the relevant companies will be subject to extensive reporting obligations. As part of this, companies will also have to report on the proportion of female and male employees receiving so-called additional wage elements, such as bonuses or what the gender ratio is within certain salary bands. Where there is a gender pay gap of 5 percent or more, employers should work with employee representatives or works councils to conduct a deeper analysis and develop a corrective action plan to address the situation.