By 7 June 2026, all European Union Member States were required to transpose Directive (EU) 2023/970 on pay transparency into their national legislation. Although Bulgaria has not yet adopted the necessary legislative amendments, such changes are expected in the near future. Nevertheless, following the expiry of the transposition deadline, EU citizens may already rely directly on the rights granted under the Directive.
The primary objective of the Directive is to reduce unjustified pay disparities between individuals performing the same work or work of equal value. Employers will be required to clearly justify differences in remuneration by reference to objective criteria such as skills, responsibilities, level of effort, and working conditions.
What Will Actually Change?
One of the most significant changes concerns job advertisements. Employers will be obliged to disclose the starting salary or at least the salary range either in the job posting itself or no later than prior to the interview stage. In addition, employers will no longer be permitted to ask candidates about their previous remuneration.
Компаниите ще трябва да изготвят вътрешни правила за определяне на заплатите. Тези правила следва да са ясни, обективни и да не зависят от пола на служителя. Служителите на свой ред ще имат право да поискат информация как точно се формират заплатите в компанията и какви са средните нива на възнаграждение за позиции, подобни на тяхната.
Another important development is that employees will be free to discuss their salaries with colleagues where this is necessary to assess compliance with the principle of equal pay. Contractual clauses restricting such discussions, commonly included in employment agreements, will no longer be enforceable to that extent.
At the same time, the Directive does not seek to make every employee’s salary publicly accessible. Employers may refuse to disclose information where doing so would reveal the remuneration of a specific individual and potentially infringe that person’s rights. Any information obtained may be used solely for the purposes of verifying compliance with equal pay obligations.
What Does This Mean for Employers and Employees?
For employees, the new rules provide greater transparency and a clearer understanding of whether their remuneration is fair, as well as what factors may influence future salary increases.
For employers, the changes will require additional preparation, including the implementation of internal pay structures, the review of recruitment practices and job advertisements, and the development of remuneration systems capable of ensuring equal treatment within the workplace.
Ultimately, the new framework aims to create a more transparent and equitable labour market, while still preserving an appropriate level of confidentiality in relation to employee rlemuneration.
This news article does not constitute legal advice. If you need legal advice, please contact us at office@unitedlawpartners.bg
