The EU Pay Transparency Directive was approved in June 2023 and is due to be implemented into national law by EU Member States by 7 June 2026. The legislation aims to put in place a process by which employees can get access to transparent data concerning the way their employer structures pay and promotion processes including salary range disclosure at time of recruitment and ensuring men and woman are paid equally for comparable work.
Recent research from Indeed found that across Europe, around three in four women said they would be more likely to apply to a job if the salary was stated and believe job postings should include salary ranges as standard. The research went on to further show that most European job postings still omit salary, leaving candidates to apply without all the facts about compensation. This means many EU member states will miss the June deadline with potential infringement procedures and financial penalties to be imposed.
Indeed has indicated that transparency rates vary widely across occupations. The most transparent categories of jobs are typically that of lower-paid, standardised roles. These are generally characterised by higher turnover, greater labour substitutability, and non-pay benefits, therefore making salary one of the main features employers compete on.
From a Northern Ireland perspective due to Brexit, the position of the EU Pay Transparency Directive is not so straightforward. There is an outstanding question as to whether these conditions set out in the EU Pay Transparency Directive will apply to Northern Ireland under the Windsor Framework.
Both the Equality Commission for Northern Ireland and the Northern Ireland Human Rights Commission argue for the implementation of most Pay Transparency Directives obligations in Northern Ireland. If this proves to be the case, Northern Ireland could see lower reporting thresholds, stronger individual and employee transparency rights, and business accountability for equality of gender pay.
With this in mind, businesses in Northern Ireland need to be ready for any potential changes imposed, such as (but not limited to); ensuring pay reporting processes are ready, publishing of clear and consistent salary bands and ensuring managers are confident to understand and communicate pay related queries.
To discuss any aspect, please get in touch with HR Consultant Brian Lenehan E: brianlenehan@bakertillymm.co.uk T: 028 9032 3466.
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