Equal pay for men and women has been a cornerstone of EU policy since the Treaty of Rome in 1957. Over the years, this principle has evolved, shaped by numerous CJEU judgements and now reflected in 13 EU Directives on gender equality. The requirement to ensure equal pay is set out in Article 157 TFEU.
One of the most significant milestones was the Equal Pay Directive of 1975, which laid the groundwork for implementing equal pay.
Fast forward to May 10, 2023, the EU adopted the Pay Transparency Directive, set to be transposed by 2026. It applies to all employees and mandates that employees have the right to information on average pay rates among their peers and more detailed information on pay gaps each year.
The reason for this Directive was, simply put, that all prior initiatives had only served to bridge the gender gap but had not done enough to close it.
In November 2022, the EU Commission had published a Factsheet report which confirmed that:
- The Gender Pay Gap in the EU stood at 13%.
- The gap decreased by only 2.8% pp in 10 year.
- Women on average earned 0.87€ for every 1€ earned by men.
- Women would need to work 1.5 extra months to make up the difference.
- Luxembourg came in first, with a 0.7 pay gap. Malta came in 6th, with a 10.0 pay gap (up from 9.7 in 2013). Latvia came in last with a 22.3 pay gap.
Time had come to roll our measures that would bring taper the gap,
For HR specialists, this means a renewed focus on creating gender-neutral job structures, equitable pay bands, and transparent communication with employees. It’s crucial to ensure that your organization is compliant with these new regulations and is actively working towards closing the gender pay gap.
Read more here to learn how Malta law currently regulates Equal Pay or here. to read gain more insight into the Directive. Read here about the CJEU Tesco Case. Get in touch if need help navigating these changes. Employment360 can direct you to specialists in law, HR consultancy, stats and tech.
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