The EU Pay Transparency Directive, aimed at strengthening the principle of equal pay for men and women, has completed the legislative stage and is now moving toward implementation in Poland. This process, planned for 2026, will present a number of challenges for Polish employers.

The directive has two key features: pay equality and transparency. The EU legislator is responding to existing pay inequalities, identifying a lack of transparency as the main cause of this phenomenon. The term “equal pay” covers work of equal value, eliminating pay injustices based on gender. Pay transparency is intended to make it easier for employees to demonstrate potential pay discrimination.

The gender pay gap in the EU stands at 12.7%, with the main causes being pay discrimination, horizontal segregation, and the ratio of full-time to part-time employment. In Poland, the pay gap amounted to 4.5% in 2021. Despite existing legal provisions, inequalities persist, demonstrating how difficult they are to eliminate in practice.

The directive imposes obligations related to pay information both during recruitment and for existing employees. Employers will be required to report pay gaps, and if the gap exceeds 5%, to conduct a “pay assessment” together with employee representatives. There are also requirements regarding access to information on pay-setting criteria.

The most significant changes include a ban on pay secrecy, and employers will be required to provide information on remuneration criteria. Implementation of the directive will also require the involvement of employee representatives, which may lead to more complex decision-making processes within companies.

It is worth emphasizing that the directive applies to all employees, regardless of the form of employment. It also provides for sanctions in cases of non-compliance.

The implementation of the Pay Transparency Directive represents a significant challenge for Polish employers, requiring adaptation to new standards of pay management and closer cooperation with employee representatives. Although Poland has a relatively low gender pay gap, implementation of the directive will contribute to improving pay equality and increasing transparency in the labor market.

These issues are described in more detail by Krzysztof Nowak from Mercer in an article published on their website. I encourage you to read it for further insight.

Author: Agnieszka Orłowska (Managing Director at ESG Institute)

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