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MEPs Back Pay Transparency Directive That Helps Expose Gender Pay Gap

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The European Parliament has voted in favour to enter negotiations with EU governments on a Commission proposal for a Pay Transparency Directive.

MEPs are demanding that EU companies with at least 50 employees must 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.

They said that tools to assess and compare such pay levels should be based on gender-neutral criteria and include gender-neutral job evaluation and classification systems. 

If reports show that a gender pay gap of 2.5% or more is present, member states will be required to ensure employers conduct a joint pay assessment and develop a gender action plan in conjunction with the workers’ representatives.

MEPs also expressed that they wish for the European Commission to create a dedicated official label to award organisations where no gender pay gap is present.

The European Commission also proposed to shift the burden of proof on pay-related issues. This would mean in cases where a worker feels that equal pay isn’t being applied and takes the case to court, national legislation should oblige the employer to prove that there has been no legislation. This proposal was also backed by the Parliament.

The draft proposals for the directive include text which stipulates that workers and their representatives should have the right to access clear and complete information about individual and average pay levels, broken down by gender.

Since the Council of the European Union adopted its position on the legislation last December, the Parliament will soon be entering into negotiations.

The principle of equal pay is enshrined in Article 157 of the Treaty of the Functioning of the European Union. However, women in the EU’s workforce earn an average of 13% less than men who are performing the same job. 

This article is part of a content series called Ewropej. This is a multi-newsroom initiative part-funded by the European Parliament to bring the work of the EP closer to the citizens of Malta and keep them informed about matters that affect their daily lives. This article reflects only the author’s view. The European Parliament is not responsible for any use that may be made of the information it contains.

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Amy is a university student with a keen interest in all things related to food, photography, press freedom, politics and justice. Send her any stories that might be of interest at [email protected]

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