In recent years, pay transparency has gained increasing importance, particularly in efforts to promote equal career opportunities and reduce gender pay gaps. In response to this issue, the European Union has adopted the Pay Transparency Directive, aimed at ensuring fair wages and equitable treatment for workers across member states.
The directive applies to both private companies and public institutions operating within the EU and establishes new obligations regarding salary disclosures and pay gap analysis.
New Employer Responsibilities
The EU Pay Transparency Directive primarily targets companies with more than 50 employees and introduces several mandatory reporting requirements, including:
- Annual reports on employee salaries
- Analyses of gender pay gaps
- Disclosure of average salaries and discrepancies between male and female employees in equivalent roles
“Companies affected by the new regulations will need to take concrete action. The first step is collecting salary data for all employees, considering factors such as gender, job position, and experience. The next phase involves implementing a reporting system that complies with the new requirements. Transparency will be key—not only internally but also externally, depending on legal obligations,” says Agnieszka Gołębiewska, Senior Associate Manager at Michael Page Human Resources.
Closing the Gender Pay Gap
One of the directive’s main objectives is to reduce pay inequalities, particularly between men and women. Despite ongoing efforts, gender-based wage disparities remain a concern in many EU countries, including Poland, where women continue to earn less than men in identical positions despite having similar qualifications and experience.
According to Eurostat data, in 2023, the gender pay gap in the EU stood at 13%, meaning that women earned, on average, 13% less than men in comparable roles. These disparities are most evident in female-dominated sectors, such as education and healthcare.
“While the directive does not explicitly mention the ‘glass ceiling,’ it does address the concept of the ‘sticky floor’—the systemic barriers women face in the job market. This includes excessive family caregiving responsibilities and gender-based stereotypes that limit career growth. The directive aims to create better conditions for women to advance and achieve wage equality,” adds Gołębiewska.
Research by McKinsey & Company further supports the benefits of pay transparency, revealing that organizations that implemented salary transparency experienced:
- A 10% increase in employee satisfaction
- Greater diversity at senior levels
By fostering fairer wage structures, these measures not only promote pay equity but also contribute to greater overall workplace equality.
Is Poland Ready for Pay Transparency?
Poland is expected to finalize the implementation of the Pay Transparency Directive by the end of 2025. As a result, businesses and institutions must begin preparing for these changes by adapting their pay policies and compliance frameworks to meet EU standards.
In the near future, Poland will introduce national legislation to incorporate the directive’s provisions into domestic law. For employers, this means:
- Adjusting salary policies
- Developing structured reporting systems
- Analyzing and addressing gender-based pay disparities
Ensuring the effectiveness of the new regulations will also require labor market institutions to create monitoring tools to assess compliance and enforcement.
The Future of Pay Transparency in Poland
“For businesses, implementing the directive will be a challenge—not only in terms of adjusting salary policies but also in setting up the necessary analytical and reporting systems. However, pay transparency and gender pay equity will remain key issues in the coming years across Poland and the EU, and hopefully, nothing will change that,” concludes Gołębiewska.
The EU Pay Transparency Directive marks a significant step toward wage equality and a fairer labor market. In the long run, salary transparency can enhance trust and openness in employer-employee relationships.
Moreover, these changes align closely with the EU’s “Women on Boards” Directive, reinforcing broader efforts to promote gender equality and professional advancement across Europe.
Source: CEO.com.pl
