New Pay Transparency Rules: Draft Amendments to the Protection Against Discrimination Act

Currently, the Draft Act has been published for public consultation, which will remain open until 2 June 2026, after which the amendments are expected to be voted in the plenary session. Any interested party may submit statement by that deadline, which will be taken into consideration during the plenary session.

Greater transparency in hiring and recruitment: The Draft Act introduces an obligation for employers to provide job applicants with information on the amount of the basic remuneration (or the relevant ranges), as well as of any additional remuneration of a permanent nature applicable to the position offered. Employers will be prohibited from requesting information regarding an applicant’s remuneration from current or previous employers.

New employees’ rights to information regarding remuneration: Employees will be entitled upon written request to the employer (including through the trade unions or the Commission for Protection against Discrimination), to receive written information on their own remuneration and on the average pay levels within the undertaking. Such information must be provided within 2 months from receipt of the request and must include a gender-based breakdown of the average pay levels for employees performing the same work or work of equal value. In addition, the Draft Act envisages that, by 31 January of each year, employers must inform employees of their right to obtain such information and of the procedure for exercising that right.

Restriction of confidentiality clauses relating to remuneration: The Draft Act introduces a prohibition on including clauses employment agreements which restrict employees from disclosing information about their remuneration.

Clearer criteria for the assessment of equal pay: The Draft Act further develops the criteria on the basis of which equal remuneration for the same work or work of equal value should be assessed, e.g. the complexity, burden and responsibility of the work, the working conditions, and the quality and duration of the work performed.

New reporting obligations: The Draft Act introduces an obligation for employers to provide the Commission for Protection against Discrimination with information regarding the gender pay gap. The reporting frequency and deadline differ depending on the number of employees in the company.

Where a 5% difference in the average pay level of female and male employees is identified, employers will be required to provide justification for such difference. If the differences are not justified, employers will be required to undertake corrective measures and, in certain cases, to carry out a pay assessment jointly with the trade unions and/or employees’ representatives.

The amendments are envisaged to enter into force on 7 June 2026, with the exception of the reporting obligations, which will apply at a later stage and depending on the number of employees in the company.

As this is currently only a draft act, the wording may still be amended during the legislative process. In the meantime, given the relatively short time frames within which some of the new requirements are expected to become applicable, it is recommendable for employers to review and, if necessary, update any internal policies and documents – such as job advertisements, internal remuneration rules, template employment agreements, etc. Our employment team remains available for any assistance in this regard.

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