Directive (EU) 2023/970 strengthens the principle of equal pay for equal work or work of equal value. Member states must transpose it by 7 June 2026. The Directive introduces three interconnected obligations: pre-employment pay transparency, requiring employers to include salary information in job advertisements or disclose it before interviews; the right of existing employees to request written information on their individual pay level and the average pay of colleagues performing comparable work; and regular pay gap reporting to national authorities and employees.
Employers with 250 or more employees must report their gender pay gap annually from the first reporting year; employers with 150 to 249 employees report every three years; those with 100 to 149 employees report every three years once the Directive is transposed. Where a reported gap exceeds 5 per cent and cannot be justified on objective, gender-neutral factors, the employer must conduct a joint pay assessment with worker representatives.
The Directive introduces a shifted burden of proof: when an employee alleges pay discrimination, the employer must demonstrate that no breach has occurred. Penalties for non-compliance must be effective, proportionate, and dissuasive, and must include compensation to affected employees covering full back pay, bonuses, and related benefits.