In 2023, women in the EU continued to earn 12% less than men on average, as reported by Eurostat. To address this gender pay gap, the EU has introduced the Pay Transparency Directive, which member states are required to incorporate into their national laws by June 2026. Some business organizations are in opposition to certain aspects of the directive and are advocating for an exemption for companies with 100 to 250 employees, instead of limiting it to those with fewer than 50 workers.

According to calculations by the European Trade Union Confederation (ETUC), not implementing transparency measures would mean a financial loss for EU women of at least €4.8 billion annually, potentially rising to €7.2 billion. This equals around €465 to €700 per woman per year. Despite these initiatives, the level of transparency in disclosing salaries in job advertisements remains low in some of Europe's largest economies, such as Germany, where rates are below 20%, as reported by hiring platform Indeed.

ETUC underlines the importance of including robust measures to promote equal pay in the European Commission's upcoming Roadmap for Women’s Rights. Isabelle Schömann, Deputy General Secretary of ETUC, stresses the significance of transparency in achieving equality, as shedding light on discrimination can drive action to rectify injustices.

ETUC notes that companies in Europe with 100 to 250 employees, which may be granted a transparency exemption, collectively employ over 10 million women. Schömann highlights that while companies argue they are burdened by regulations, it is women workers who suffer from low wages.

The Confederation emphasizes that transparency has proven to be a vital tool for women employees and their unions in narrowing the gender pay gap. ETUC's research reveals that if pay transparency regulations resulted in a 15% reduction in the gender pay gap, the annual gap for women in businesses with 100 to 249 employees would decrease from €4,640 to €3,944, benefiting each woman by about €700 annually. Conversely, a more conservative estimate of a 10% reduction in the gender pay gap would lower the annual gap to €4,176, providing each woman with a boost of approximately €465. Excluding these workers from small and medium-sized enterprises from pay transparency requirements could cost €4.8 billion yearly.

ETUC raises concerns about lobby group BusinessEurope's proposal for the Commission to exclude most companies covered by the Pay Transparency Directive from reporting on the gender pay gap. In its report on Reducing Regulatory Burden to Restore the EU’s Competitive Edge, BusinessEurope suggests modifying the scope of the directive to exempt all SMEs with fewer than 250 employees from reporting obligations.