EU Implements Pay Transparency Regulations to Tackle Wage Inequality by 2026

CAREERSEU Implements Pay Transparency Regulations to Tackle Wage Inequality by 2026

The European Union is introducing new regulations on pay transparency that are to take effect from 7 June 2026. Companies employing over 50 people will be required to disclose wage data, and those with over 100 employees will additionally have to report consecutively with equal pay principles. Most companies of this size operate in sectors such as industry, healthcare, public administrative, trade, and transport. Despite numerous benefits, many organizations still do not take action in this area.

The European Union has introduced new regulations designed to strengthen the principle of equal pay for equal work for women and men. The aim of the regulation is to increase wage transparency, more effective law enforcement and reduce wage disparities, which still exist in the EU at a level of about 13% to the disadvantage of women. The regulations passed on 24 April 2023 also aim to eliminate the pension gap.

The directive specifies that “the same work” refers to positions that require comparable skills and scope of duties, while “work of the same value” involves roles differing in duties but requiring similar competencies, commitment and accountability. Employees in such positions should receive comparable pay, regardless of gender. Companies need to create transparent payment systems and ensure employees’ right to wage information for equivalent positions. The employer cannot limit access to this data or hide the criteria for setting wages. Transparency also includes publishing rates in job offers and a ban on asking about previous pay during recruitment.

Companies employing at least 100 people will have to periodically report wage differences, indicating for example, the median wages of women and men and their distribution percentage at different wage levels. The reporting schedule depends on the size of the company, and the largest employers must start activities from mid-2027. If the wage difference between women and men in roles of the same value exceeds 5% and is not justified by neutral criteria, companies will be obliged to conduct a detailed wage analysis and corrective actions, i.e., develop a plan to reduce wage inequality and ensure greater wage fairness in the organization.

“Employees will have the right to obtain detailed pay information from the employer and take recourse to legal action. The new regulations aim to ensure effective legal protection for employees in case of wage discrimination. Employees will gain the right to compensation and reimbursement of arrears of wages,” said Magda DÄ…browska, vice-president of Grupa Progres. “The key change is to shift the burden of proof to employers, which is intended to make it easier for employees to enforce their rights. Additionally, severe penalties are envisaged for companies violating the regulations, including fines,” adds Magda DÄ…browska.

According to Grupa Progres’s research, the new regulations will mostly affect the industrial processing, healthcare, public administration, trade, TSL, and construction sectors. These sectors have the highest number of companies that, considering the number of employees (over 50 people), will be subject to new regulations. This is also confirmed by Central Statistical Office data, according to which the number of entities of the national economy in the REGON register employing more than 50 workers exceeds 31,000 (data from October 2024). The largest group is the industrial processing sector (over 6,800 companies). Other noteworthy fields include education (6,400), wholesale and retail trade (over 3,000), public administration and national defense (2,700), healthcare and social assistance (over 2,000), construction (1,700), administrative service activities and those supporting them (1,100), transport and warehousing (894).

“Companies from such sectors as industrial processing, healthcare, trade or construction may have difficulties with aligning the wages of women and men due to several factors. In these sectors, there is often a historically entrenched gender segmentation in jobs – women and men dominate different roles, which can make implementing the equal pay policy difficult,” says Magda DÄ…browska, vice-president of Grupa Progres. “In addition, larger companies covered by the new regulations often have a more complex organizational structure, which requires detailed wage analyses at many levels. Coupled with such a high number of these businesses in Poland, the widespread process of implementing the regulations may be time-consuming. Moreover, for many companies that have so far been saving on the remuneration of women, it can also be a very expensive process. However, such action is necessary, as the problem of wage inequality in Poland still occurs at an alarmingly high level,” emphasizes Magda DÄ…browska.

The wage gap numbers

The average wage difference between women and men in the EU was 13%. In Poland, according to Central Statistical Office data, the average gross monthly wage in March 2024 was PLN 8,604.72. The data confirm that men still earn more than women. The median wage at that time was PLN 6,549.22 (for men – PLN 6,770.08, for women – PLN 6,357.44). The average gross wage of men was PLN 8,885.90 and was equivalent to 103.3% of the average wage. For women, it was PLN 8,311.91, which corresponded to 96.6% of the national average. The median wages of men were 3.4% higher than the overall median, while for women they were 2.9% lower. Analyzing wages divided into sectors, the leader was the “information and communication” sector, where average earnings reached almost PLN 15,000. In the “financial and insurance activities” sector, the highest wage disparities between genders were registered, exceeding PLN 7,000 to the disadvantage of women. It is worth noting that in two sectors, women earned on average more than men. The biggest difference in favor of women was in the construction sector, where their average wage was higher by almost PLN 1,300.

The data shows that wages in March 2024 varied significantly depending on the type of activity. The highest median was recorded in the information and communication section, amounting to PLN 10,558.90 gross. The analysis showed that the median wage of men exceeded the median wage of women in 15 out of 19 coded activity sections. The highest disparity was observed in financial and insurance activities, where the median wages of men were as much as 43.7% higher than those of women.

The median wages of women exceeded those of men in three coded activity sections. The construction section stood out, where the median wage of women was as much as 32.6% higher. In the two remaining cases, this difference did not exceed 4%.

Similarly, average gross monthly wages reveal similar trends. The highest values occurred in the information and communication section, where average wages were almost PLN 15,000 gross. The largest difference between average wages of men and women arose in the financial and insurance activities sector, amounting to over PLN 7,000 gross. It is worth noting that women’s average wages were higher than men’s in two sections. They achieved the greatest advantage in the construction section, where women earned on average PLN 1,300 gross more than men.

The wage gap has long-term consequences – it affects not only the current standard of living of women but also their pensions, increasing the risk of poverty in old age. According to Social Insurance Institution data, the average pension in 2024 was approximately PLN 3,500 gross, with men receiving a payout of around PLN 4,700, while for women it was PLN 3,200.

Source: https://ceo.com.pl/nowe-przepisy-ue-przejrzystosc-plac-i-rownosc-wynagrodzen-obowiazkowe-od-2026-r-94397

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