- EU Directive 2023/970 requires Member State countries to incorporate salary disclosure obligations into their countries’ laws.
- This Insight discusses how these new pay transparency obligations will affect Spanish employers.
Reducing the wage gap continues to be one of the European Union’s strategic objectives. To this end, on May 10, 2023, Directive 2023/970 was issued to reinforce the principle of equal pay between men and women who perform the same work or work of equal value.
The new European legislation strengthens the social aspect of pay equity and requires employers to provide salary transparency. This obligation will require the adaptation of Spanish regulations to incorporate the Directive’s obligations into Spanish law. Specifically, the Directive places a central focus on pay transparency as a tool to eradicate wage discrimination. Therefore, among the approved measures, companies will be required to disclose salary information both prior to employment and once the employee becomes part of the organization.
The following describes employers’ new obligations:
1. In the selection phase, the employer must ensure that the salary information for the offered position is public by disclosing the specific salary or salary levels in the job posting. Informing a job applicant about the position’s salary privately during a job interview would not suffice to comply with the regulation.
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