Women in EU 'losing billions' over pay transparency delay

Women in the European Union are facing significant financial losses each year because member states are delaying the implementation of crucial pay transparency laws. Research from the European Trade Union Institute indicates that these delays are costing women billions of euros annually.

The EU Pay Transparency Directive, designed to combat pay discrimination and reduce the gender pay gap, mandates that employers must provide information on salaries. Companies are also required to take action if their gender pay gap surpasses 5%.

However, the deadline for EU governments to adopt the directive was June 7, a date missed by Ireland and most other member states. The European Trade Union Institute estimates that the average woman worker could be €672 poorer per year due to these delays. Cumulatively, the 43 million women covered by the directive stand to lose €28 billion annually compared to a scenario where the gender pay gap is reduced by 10%.

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The cost of pay transparency measures are small for companies but this analysis shows that inaction by national governments will cost women workers billions in lost wages.

Esther Lynch, General Secretary of the European Trade Union Confederation (ETUC), stressed the urgency for member states to enact the directive into national law. She highlighted that while the cost of pay transparency measures is minimal for companies, the cost of inaction for women workers in lost wages is substantial and unacceptable after decades of pay discrimination.

The Irish government has stated that pay transparency measures will be phased in, and employers will not face penalties for non-compliance in the interim. The Department of Children, Disability and Equality noted that existing gender pay gap legislation already covers a significant portion of the directive, and work is ongoing to transpose the remaining provisions.

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This is completely unacceptable when women have already suffered decades of pay discrimination.