The European Parliament adopted rules on Thursday, March 30, that will force European Union businesses to be transparent about salaries, ensure equal pay between women and men and introduce potential fines for wage discrimination.
Women earn on average 13% less per hour than men for the same job in the bloc, according to official 2020 data. Under the new rules, workers will be permitted to ask about individual and average pay levels broken down by gender in their workplace. "Pay secrecy will be banned," the European Parliament said in a statement.
Other rules stipulate that if a company has at least 100 employees, it must publish information regularly on the gender pay gap. Companies will also have to negotiate with staff representatives if there is a discrepancy of 5%. Those who break any of the rules face sanctions, including fines.
Employees who believe they are a victim of discrimination can seek compensation. "Equal work deserves equal pay. And for equal pay, you need transparency," said Ursula von der Leyen, the president of the European Commission, before the vote.
"Women must know whether their employers treat them fairly. And when this is not the case, they must have the power to fight back and get what they deserve," she added.
The gender pay gap is varied across the bloc. It is only 0.7% in Luxembourg but reaches 15.8% in France, 18.3% in Germany and 22.3% in Latvia.
The European Commission, the EU's executive arm, first proposed the rules in March 2021. Before they are adopted, they must be formally signed off by the European Council which represents member states.
EU countries will then have to start translating the rules into their national laws within three years after their publication in the bloc's official gazette.