Public consultation on amendments to the Labor Law reveals mixed reactions from the business community regarding mandatory salary transparency.
The proposed changes aim to align with EU directives on gender equality in employment, strengthening the principle of equal pay for equal work or work of equal value. Key provisions include:
- Job candidates will have the right to receive information about starting salaries or salary ranges for positions they apply for, as well as details on applicable collective agreements.
- Employers cannot ask potential employees about their current or previous salaries.
- Employees are protected from dismissal or other penalties for disclosing their own salary.
- Workers can request information about their own pay and the average gross salary of employees performing work of equal value.
The law also introduces reporting obligations for employers with more than 100 employees, who must provide data on gender pay gaps and variable compensation, effective from 2031. Additionally, a new minimum wage metric tied to purchasing power will be established.
Business representatives expressed concerns that full salary transparency could undermine competitiveness, violate privacy, and reduce employers’ flexibility in rewarding performance. They also highlighted challenges in defining “work of equal value” across positions and the potential administrative burden of compliance.
The Ministry of Labor emphasized that employers retain options to disclose salary ranges in job postings or through other specified methods, aiming to balance transparency with operational flexibility.
