What does the pay transparency directive entail?
The pay transparency directive requires employers to share information regarding the salaries of men and women performing work of equal value. If the pay gap between men and women exceeds 5%, employers must take measures to reduce this disparity. Additionally, the directive includes provisions for compensating workers who are victims of pay discrimination, and it establishes sanctions, including fines, for violations of these rules.
Specifically, it involves the following five requirements:
- Equal pay for equal work
- Transparency in setting remuneration
- Transparency of remuneration in job advertisements
- Transparency of remuneration by category
- Reporting on the pay gap
Our advice
A clear pay policy enhances motivation within your team. Therefore, it is advisable to begin developing a clear and transparent HR policy today. You can identify your pay gap using objective data and statistics. This will enable you to easily identify discriminatory pay differences and address them promptly.
1. Equal pay for equal work
As an employer, you must ensure that your employees receive the same salary for equal or equivalent work. To achieve this, you should evaluate existing roles based on objective criteria, such as skills, effort, responsibilities, and working conditions, without making distinctions based on gender.
2. Transparency in setting remuneration
This does not imply that employees in comparable situations must earn exactly the same amount. Pay differences are permissible, but they must be based on objective and gender-neutral criteria, such as performance or skills. The criteria for determining and progressing salaries must be clear and transparent to all employees.
3. Transparency of remuneration in job advertisements
As an employer, you are required to inform candidates of the starting salary or salary range for the position prior to the job interview. This information should be included in the job offer. Furthermore, it is prohibited to inquire about a candidate's current or previous salary to prevent pay discrimination.
4. Transparency of remuneration by category
Your employees and union representatives have the right to receive information about their own salary and the average salary of employees in the same category who perform the same or equivalent work, broken down by gender. This allows employees to understand their position within their category without disclosing the individual salaries of their colleagues.
5. Reporting on the pay gap
As a company, you must also communicate your pay policy through detailed reports. The frequency of these reports and the timeline for the first report depend on the size of your organization.
- If you have 250 employees or more, you must report by 2027 at the latest regarding 2026 and then repeat this annually.
- This requirement also applies to companies with 150 to 249 employees, but they must prepare a report every three years.
- If you employ 100 to 149 employees, you must report by 2031 at the latest regarding 2030 and then repeat this every three years.
- If you have fewer than 100 employees, you are not required to prepare a report, but you may do so voluntarily.
If the report indicates that the pay gap is greater than 5% and you cannot objectively justify the difference, you must establish an action plan in collaboration with the workers' representatives.
Sanctions
As an employer, you are required to fully compensate victims of pay discrimination. This includes paying back wages, bonuses, and benefits in kind. It is important to note that the burden of proof is reversed; you, as the employer, must demonstrate compliance with the rules of equal treatment and pay transparency, rather than the employee who claims to have been discriminated against. Although this directive has not yet been transposed into Belgian law, we advise you to review your pay policy to ensure it is gender-neutral. A robust pay policy will help you comply with regulations on pay transparency and avoid sanctions and disputes with your employees.
What does Securex do to help you?
Our consultants can conduct an audit of your pay policy, propose optimisations, and assist you in implementing them, with particular attention to gender-neutral remuneration. Please do not hesitate to contact us via email at consultinglegal@securex.be. We will be pleased to assist you.
