Vulcan Insight

European Parliament backs binding pay-transparency measures

8 April 2022

On Tuesday, the European Parliament decided by 403 votes in favour, 166 against and 58 abstentions to enter into negotiations with EU governments on a Commission proposal for a Pay Transparency Directive.

MEPs demand EU companies with at least 50 employees (instead of 250 as originally proposed) be required to disclose information that makes it easier for those working for the same employer to compare salaries and expose any existing gender pay gap in their organisation. Currently, working women in the EU earn on average 13% less than men when doing the same job. MEPs also want the Commission to create a dedicated official label to award to employers whose organisations do not have a gender pay gap

Samira Rafaela (Renew Europe, NL), of the Women’s Rights and Gender Equality Committee, said on Tuesday: ‘‘Today we are a step closer to getting rid of the gender pay gap in Europe. We do not have any time to waste. Women deserve to be treated and to be paid equally. This is in the best interest of our economy, our businesses and our citizens. In Parliament, we have tried to strike the right balance between ensuring the right to information for female employees and limiting unnecessary burdens on companies. This way we can make equal pay for equal work a reality for as many women in Europe as possible.’’

The European Parliament is now ready to enter negotiations on this law as the Council already adopted its position last December.