Pay Equality in Europe: upcoming changes
The gender pay gap remains a persistent challenge in Europe. In 2021, women earned on average 13% less than men, according to Eurostat. To address this gap, the European Pay Transparency Directive introduces ambitious measures aimed at ensuring equal pay for work of equal value.
While some countries had already taken steps in this direction, the directive now seeks to harmonize practices across the European Union. But what are its concrete implications? And what lessons can be learned from the best practices already implemented by some organizations?
Existing national initiatives: a diverse landscape
Even before the adoption of this directive, several European countries had already launched initiatives to reduce gender pay gaps. However, these national approaches produced uneven results, highlighting the need for a unified framework.
France: the professional equality index
In France, the Professional Equality Index, introduced in 2019, requires companies to assess and publish their performance in terms of gender equality. However, according to the French Ministry of Labor, nearly 20% of companies still fail to reach the minimum required score of 75 out of 100.
Germany: limited transparency
Germany introduced a Pay Transparency Act in 2017, allowing employees to request information about average salaries within their organization. However, the law remains limited in scope, as it only applies to companies with more than 200 employees.
These national initiatives demonstrate that reducing pay inequality requires sustained efforts. However, without a shared regulatory framework, their overall impact remains limited. The new European directive aims to address this gap.
The role of the directive in promoting pay equality
The directive marks a turning point by introducing harmonized obligations for all EU member states. By complementing existing national measures, it establishes a solid foundation for reducing pay disparities.
Mandatory transparency from the recruitment stage
Article 5 of the directive states:
“Job applicants have the right to receive information from the prospective employer about the initial pay or its range, based on objective, gender-neutral criteria corresponding to the position concerned.”
This measure aims to eliminate disparities from the recruitment stage, a moment when biases are often the most significant.
Regular reporting on pay gaps
The directive requires companies with more than 250 employees to publish regular reports on gender pay gaps.
Article 9 (“Communication of information relating to the pay gap between female and male workers”) specifies that:
“Member States shall ensure that employers provide the following information regarding their organization (...) the gender pay gap.”
These reports will serve as a foundation for identifying and correcting unjustified pay disparities.
Strengthened employee rights
Article 16 of the directive states:
“Member States shall ensure that any worker who has suffered harm as a result of a violation of rights or obligations relating to the principle of equal pay has the right to claim and obtain full compensation or reparation.
This includes financial compensation as well as recognition of moral damages, giving employees concrete tools to challenge pay inequalities.
These uniform obligations show that the directive does not merely set improvement targets. It introduces concrete mechanisms to achieve them.
Best practices from companies promoting pay equality
Some European companies did not wait for the directive to act. Their initiatives demonstrate how transparency can become a strategic lever to reduce pay gaps and strengthen employer attractiveness.
Unilever France: parity at the Ccore of its commitment
Unilever France is a major player in the consumer goods sector and employs around 6,000 people in France. The company is widely recognized for its commitment to professional equality. In its 2023 report, Unilever announced that it had achieved strict pay parity between men and women across all roles.
To go further, the company introduced several innovative initiatives:
- An internal network of ambassadors to raise awareness about gender stereotypes
- An inclusive hiring policy, with 53% of leadership positions now held by women
- Regular audits to identify and correct any salary disparities
Skanska: a construction leader committed to equality
Skanska, one of the largest construction groups in Europe, has implemented strong measures to ensure pay equity and inclusion. As a Swedish company, it aligns with the country’s high standards for equality.
Key initiatives include:
- The creation of an internal diversity and inclusion committee responsible for monitoring progress and recommending corrective measures
- A clear objective: 50% women in leadership positions by 2030, supported by mentoring and skills development programs
Thanks to these efforts, Skanska reports one of the lowest pay gaps in its industry.
Sodexo: a global strategy for gender parity
Sodexo stands out for its concrete commitment to gender parity. In 2022, the company was recognized for the ninth consecutive year in the ranking of companies promoting the feminization of leadership bodies.
Among Sodexo’s initiatives:
- Gender representation quotas in leadership nominations
- An international mentoring program supporting women’s access to leadership roles
- The implementation of Global Gender Balance Studies, an internal tool used to measure progress and identify priority areas for improvement
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