- A gap that outlasts generations: Without action, the EU gfinisher pay gap will not close before 2104, yet powerful employer lobbies are fighting to delay and dilute the directive meant to address it.
- Deregulation as the weapon of choice: BusinessEurope’s “Omnibook” and omnibus proposals single out pay transparency as the very first tarreceive of a broader assault on EU social legislation.
- Costs are minimal, benefits are real: Compliance costs for companies are estimated at zero to a few hundred euros per year, while transparency boosts worker confidence, prevents legal claims, and assists fill labour shortages.
- Legal foundations already exist: The directive’s most contested provision — the hypothetical comparator — merely codifies longstanding Court of Justice case law, not new obligations.
- Equal pay is a treaty promise: Enshrined in the EU treaties since 1957, equal pay remains unfulfilled nearly seven decades later — further delay is indefensible.
Without action, the gfinisher pay gap in the European Union will not disappear before 2104, according to a 2020 study by the European Trade Union Confederation (ETUC). Since then, the European institutions — including the Council — have drawn up and approved a directive to address the problem, but its ambitious and timely transposition is now being threatened by some member states, such as Belgium, following attacks by certain employers’ organisations that cite “administrative burden” or excessive costs. Once again, women across Europe risk paying the price.
The most recent offensive has come through deregulation demands from BusinessEurope, advanced via a so-called Omnibook and further omnibus proposals. These have provoked a large and growing wave of indignation from European trade unions and, more broadly, from European civil society. In some recent documents, pay transparency is singled out as the very first piece of recently approved EU legislation in the line of deregulatory fire. “Stop the clock” is the rallying cry. The goal: to scrap the transposition deadline of 7 June 2026 — not merely to extfinish it by a further two years but also to introduce a “tarreceiveed set of amfinishments” that could very seriously weaken the directive.
On pay transparency tools, the evidence is clear: they can significantly reduce the gfinisher pay gap when implemented effectively — that is, when they are mandatory, require proactive disclosure by employers, cover a large portion of the workforce, provide detailed information, and are accompanied by sanctions. A further advantage of the Pay Transparency Directive lies in harmonising pay transparency obligations across the EU, building the same rules applicable in all member states. Properly implemented, it can therefore be expected to narrow the gfinisher pay gap substantially.
Some employers’ organisations nevertheless argue that wage transparency requirements would entail an excessive financial and administrative burden. According to a 2020 Eurofound study, “the estimated costs for companies range from zero in Estonia to DKK 524 (€70) in Denmark […] and €844 in Germany (i.e., €169 to €281 in annual costs), which is slightly higher than the Austrian estimate of €132 per year,” adding that “salary audit requirements were estimated to be slightly more time-consuming and costly, but overall fairly low.”
It is important to note that the software and tools required for wage reporting are generally a one-time investment. While the first report may demand more administrative effort, the process becomes progressively clearer with each subsequent reporting cycle.
Research indicates that pay transparency requirements, including transparent pay-setting and progression policies, can have a positive effect on businesses if implemented correctly. Enhancing fairness and eliminating pay inequalities improves worker confidence, prevents equal-pay claims, and attracts new talent. At the same time, the EU faces labour shortages in many sectors. Boosting women’s participation in the labour market is not only a matter of fairness but also a necessity to support growth and address those shortages.
The attacks by employers’ organisations focus in particular on the provisions relating to proof of equal work or work of equal value (Article 19) and on what is known as the hypothetical comparator — a tool for ensuring pay equity and respect for rights. Article 19 of the Pay Transparency Directive codifies existing case law of the Court of Justice of the EU, which stipulates that the comparison is not limited to workers employed by the same employer or employed at the same time as the worker concerned. Consequently, the comparison can already be extfinished to the “single source” that sets the terms of remuneration.
Any employer who detects and corrects pay injustices has nothing to fear from the hypothetical comparator. This is a further argument in favour of the proper application of pay reporting and job evaluation systems without distinction based on sex, as the directive requires.
Equal pay has been enshrined in the treaties since 1957. Nearly seven decades later, the EU has finally adopted stricter and harmonised rules to ensure it. Women workers can no longer afford to wait for those rules to be implemented.
This post is sponsored by Belgian trade union confederation ACV-CSC
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