Brussels, 24 April 2023 (dpa/MIA) - The 27 EU member states approved new rules on Monday to reduce pay inequality between men and women in the European Union.

The pay transparency legislation will help "close the gender pay gap" and combat pay discrimination, according to a statement from the Council of the EU, the EU body representing the bloc's member states.

Women in the EU currently earn 13% less on average than men, the statement said.

The legislation contains binding measures that compel companies with more than 250 employees to report annually on the pay differences between men and women in their organization to a national authority.

If the gap in pay is greater than 5%, and cannot be justified with objective criteria, companies will have to take action to reduce the difference in cooperation with employees' representatives.

Other measures force companies to disclose pay rates when they advertise positions and prohibit them from asking candidates about their pay history.

Employees when hired will also have the right to request information from their employers about average pay levels, on the basis of sex, for employees doing the same work or work of the same value.

Access to criteria to determine pay and career progression, which must be objective, is also to be awarded.

In cases of pay discrimination on the basis of gender, the burden of proof shifts to the employer to demonstrate that equal pay rules have not been violated.

EU countries have three years to convert the EU legislation, first proposed in 2021, into national law.

Photo: MIA archive