It became more and more common to talk about problems related to transparency in terms of salary ranges, especially among different genders. The European Union made an attempt to come up with a solution to this issue; The European Union’s Pay Transparency Act, which is supposed to guarantee more equal remunerations, was introduced at the beginning of August, 2022. Thereby, employers will be obliged to post the salary ranges in their job offers.
This step has been mainly taken to avoid pay discrimination. Candidates will be able to compare salaries and make informed decisions concerning their future careers.
Additionally, this act enables employees to ask their employers about average salary levels and gives workers the opportunity to get the information if remunerations for the same position with the same responsibilities vary, according to gender.
The action carried out by The European Union is related to the fact that a study conducted in 2019 demonstrated that women earn significantly less (14.1%) than men in the same positions. What is worse, the difference in countries such as Estonia and Latvia equals almost 20%.
Companies that hire more than 250 employees will be required to provide information about the proportions in the employment of women and men and the distinction between their benefits or overtime. If the gender pay gap will equal 5% or more, employees’ representatives and labour inspectors will have to implement appropriate measures.
What is more, to achieve pay transparency, the data concerning remuneration need to be released publicly and they will be verified by aforementioned individuals as well as labour unions and employees themselves.
Due to the large number of changes, the act will not be implemented until 2024. In spite of the fact that the UK is no longer a part of the European Union, British employers running their businesses in the European Union will be obliged to comply with new rules.
Source: https://www.hirehive.com/new-eu-law-on-pay-transparency/
