On March 27, AmCham, in collaboration with Wolf Theiss, hosted a seminar to discuss the new EU Transparency Directive and its implications for employers. The event opened with a welcome note by Zsolt Kákosy, Chair of the Workspace and Facilities Management Committee and Property Management Director at ICON Real Estate Management Ltd., followed by presentations from Barnabás Buzási, Counsel at Wolf Theiss, and Marietta Molnár, Senior Associate at Wolf Theiss.
How will the new EU Transparency Directive affect employers?
The directive aims to reduce unjustified gender pay gaps through enhanced wage transparency and compliance measures, with Member States required to implement the rules by June 7, 2026. However, early preparation is recommended due to the complexity of the process.
On average, women in Europe earn 12.7% less per hour than men, with significant disparities across member states. In Hungary, this gap was 17.5% in 2022. What’s more, according to estimates, reducing the gender pay gap by 1% could result in a 0.1% increase in gross domestic product (GDP).
To address these inequalities, employers must consider the following objective criteria when determining wages: Skill, Effort, Responsibility, and Working conditions. These aspects are considered essential and sufficient for evaluating tasks and setting wages, but additional criteria or different weightings may also be applied where appropriate.
Furthermore, employers are required to report on gender pay gaps. Organizations with more than 100 employees must disclose gender pay gap data, with both the reporting frequency and the initial reporting dates depending on company size, starting between 2027 and 2031.
The directive further emphasizes the need for transparent, non-discriminatory hiring practices. Employers must provide clear salary ranges or starting pay for advertised positions to avoid gender bias and ensure more equitable recruitment processes. Additionally, employees can no longer be prevented from sharing their pay details, promoting greater transparency.
If the average gender pay gap exceeds 5% and cannot be justified by objective, gender-neutral criteria, a mandatory joint pay assessment must be conducted.
For more photos, please access the gallery.