Payroll transparency, as part of the “S” factor of the Sustainability / ESG concept, focuses on disclosing information about employee compensation structures, including salary, benefits and bonuses. This practice gives employees insight into their pay and promotes an environment of fairness and accountability.

The new Directive (EU) 2023/970 on pay transparency, which was adopted by the European Parliament on 30 March 2023, currently encourages transparency of pay packages and the promotion of gender equality in pay. According to the new directive, member states have until June 7, 2026 to introduce new legislation to transpose the provisions of the directive.

What news does the Wage Transparency Directive bring?

According to the provisions of the directive, companies must take into account the following important aspects:

• The EU directive obliges companies to disclose, at the request of employees, the criteria used to set wages, information about their wages and the average wage level for workers doing the same work or, more importantly, work of equal value, broken down by article It aims to highlight and address discriminatory pay gaps. Detailed reporting will provide important data to address the gender pay gap.

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The article is signed by Ana Maria Iordake, Partner, D&B David si Baias, Sonia Balanescu, Senior Associate, D&B David si Baias and Ekaterina Boca, ESG Manager, PwC Romania

Article supported by PwC Romania