Equal pay for women and men is a fundamental principle of labour law in the European Union. On May 10, 2023, the European Parliament and the Council adopted Directive (EU) 2023/970, aimed at reinforcing the principle of equal pay for equal work or work of equal value. Member States, including Poland, are required to implement this directive into national law by June 7, 2026. 

What is the EU Pay Transparency Directive? 

The main goal of the directive is to close the gender pay gap. It introduces new rules to increase pay transparency and improve employee access to information about how pay is determined within an organisation. 

Importantly, the directive applies not only to employees under standard employment contracts, but also to those who, regardless of the formal contract type, perform the same or equivalent work. 

While differences in pay are still permissible, they must be justified by objective and neutral criteria, such as professional experience, job performance, or qualifications. 

The definition of “pay” is also broadened and includes: 

• hourly and monthly salaries,

• bonuses and allowances,

• benefits in cash or in kind, such as housing support, discounts, or other compensations.

New employer obligations

The directive introduces several obligations for employers, both in the recruitment process and during ongoing employment. 

During recruitment: 

• employers must disclose the salary range in the job posting or prior to the job interview, 

• questions about candidates’ past salaries are prohibited, 

• job ads must use gender-neutral language (e.g., “coordinator (m/f)” instead of just “coordinator”). 

During employment: 

• employers must share the criteria for promotions and pay increases, 

• upon request, employees have the right to receive information about average pay levels broken down by gender for roles that are the same or of equal value. 

Reporting and pay audits

Employers in both the public and private sectors will be affected. From 2027, organisations with more than 250 employees will be required to submit annual reports detailing: 

• the gender pay gap, 

• bonuses and additional compensation, 

• median pay by gender.

Eventually, this reporting requirement will be extended to companies with 100 or more employees, with the implementation timeline to be determined by each Member State. 

Consequences for non-compliance

Failure to comply with the directive could lead to serious consequences, including: 

• compensation for unpaid wages, bonuses, and benefits, 

• damages for non-material damage, such as stress or discrimination, 

• fines linked to the company’s revenue or payroll expenses, 

• loss of eligibility for public funding or participation in public procurement. 

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Text based on: Inforlex