Gender equality in pay. What should entrepreneurs expect?

Despite years of struggle, wages for men and women doing the same work are still not equal. On average across the EU, women earn 13% less than their male counterparts, given equal qualifications and responsibilities.

European Council approved EU Directive No. 2023/970 on wage transparency. The directive aims to close the gender pay gap by disclosing pay to other employees.
We are all about gender equality, but the directive places responsibilities on our business clients, both women and men. 

What should entrepreneurs expect?

The directive requires salary disclosure, making it illegal for employees to require employees to keep their salaries secret and to prohibit them from knowing the salaries of other employees. The employer's responsibilities are supplemented by the requirement to inform job applicants of the starting salary level or pay scale for the proposed position. In addition, candidates are prohibited from asking about their salary at their previous job.

The Directive was published in the Official Journal of the European Union on 17 May 2023 and entered into force. EU states are given three years to implement it into national legislation (until June 7, 2026).

The Directive obliges employers with 100 or more employees to report to national authorities on the pay of men and women in equal positions:

• If you have 250 employees or more, the first report is submitted no later than June 7, 2027, then once a year.
• With a staff of 150 to 249 people, you first need to report no later than June 7, 2027, then once every three years.
• If you have 100 to 150 employees, the first report must be filed by June 7, 2031, then every three years.
• If the number of employees is less than 100, decisions on the need to submit reports are made at the national level.

If a company identifies a difference in wages between men and women of 5% or more, all other things being equal, it is obliged to discuss wages with the involvement of representatives of the workforce.

Companies found to be violating the principle of gender equality may be fined. Victims of labor discrimination can demand compensation through the court up to the full amount of the difference in wages for the period of work. In this case, the responsibility to prove his innocence falls on the employer.

Entrepreneurs actively involved in business development often do not want to be distracted by non-core accounting activities and filing reports, but this is an important part of their responsibilities. Leave your accounting work to the experts! Order accounting services from Nalog.nl and do what you like best!