The gender pay gap is still very much alive in Europe, with women earning on average nearly 13% less than men. The EU's new Pay Transparency Directive is designed to change that, and it will affect your organisation too. Whether you're a small employer or a large corporation, new obligations are on the horizon. Now is the time to understand what's coming and get ahead of it.
The principle of equal pay for women and men has long been established at European level. Yet its implementation across Member States remains uneven. Even today, the pay gap is still a significant social issue in the European Union.
In response to this persistent situation, the European Union adopted Directive 2023/970 on 10 May 2023 to strengthen the application of the principle of equal pay for women and men for the same job or work of equal value. The Directive seeks to concretely reinforce equal pay for equal or equivalent work by relying on a key driver: pay transparency.
Belgium has until June 2026 to transpose this Directive but, to date, no transposition deadline has been announced.
Belgian companies are ahead in this area. Belgium already has several legal tools intended to address the pay gap (notably CBA No. 25 and the obligation for companies with 50 or more workers to produce a report analyzing the pay structure for male and female workers). The pay gap is also well below the European average.
However, this relatively favorable situation does not exempt Belgian employers from the requirements set out in the Directive. It provides additional obligations for employers, notably regarding information (including at the recruitment stage), reporting and consultation with worker representatives.
In response to this persistent situation, the European Union adopted Directive 2023/970 on 10 May 2023 to strengthen the application of the principle of equal pay for women and men for the same job or work of equal value. The Directive seeks to concretely reinforce equal pay for equal or equivalent work by relying on a key driver: pay transparency.
Belgium has until June 2026 to transpose this Directive but, to date, no transposition deadline has been announced.
Belgian companies are ahead in this area. Belgium already has several legal tools intended to address the pay gap (notably CBA No. 25 and the obligation for companies with 50 or more workers to produce a report analyzing the pay structure for male and female workers). The pay gap is also well below the European average.
However, this relatively favorable situation does not exempt Belgian employers from the requirements set out in the Directive. It provides additional obligations for employers, notably regarding information (including at the recruitment stage), reporting and consultation with worker representatives.
Main obligations to note:
- Communicate salary information before the interview and prohibit questions about the candidate's previous remuneration.
- Make the criteria used in the company to determine remuneration and its progression available to staff.
- Individual guarantee for workers to be informed about the average remuneration level (broken down by gender) of colleagues performing work of equal value.
- Full compensation for prejudice suffered in cases of discrimination.
- For larger companies, obligation to provide formal reporting on pay gaps and, in the event of an unjustified and unresolved gap of more than 5%, obligation to conduct a joint assessment with worker representatives.
While this last obligation applies only to the largest companies (100 workers according to the Directive, a threshold that Belgium could lower to 50), the other measures apply to all companies.
Beyond the new legal constraints, the Directive encourages employers to rethink their pay policies and HR practices according to principles of transparency and equity. If managed well, this cultural change can become a driver for attractiveness and sustainable performance
