Pay transparency: what is changing for employers and what are the next steps?
Cláudia C. Ribeiro da Silva examines the challenges surrounding the transposition of the European Pay Transparency Directive and its main implications for employers in an article published in Human Resources Portugal, as part of the “Direito ao Essencial” series.
In the article, she addresses Portugal’s delay in transposing Directive (EU) 2023/970, whose deadline expired on 7 June 2026, and analyses the draft legislative proposal presented by the Government in August. She highlights the differences between the proposed legislation and the European requirements, particularly regarding access to pay information during recruitment processes.
In this regard, the lawyer considers that “the solution proposed in the Draft will have limited practical impact, as remuneration information is generally already communicated by employers to candidates before an employment contract is signed”.
The analysis also highlights the strengthening of employee protection against retaliation, the increased consequences for non-compliant employers and the challenges associated with the new pay reporting obligations, scheduled to take effect from June 2027 for companies with 150 or more employees.
Given the demanding deadlines, she stresses the need to anticipate the adjustments required under the new legal framework: “In this context, employers who have not yet begun the assessment and implementation process are advised to start preparing for the implementation of the new framework without delay.”
The article is part of Human Resources Portugal’s “Direito ao Essencial” series, dedicated to examining legal issues relevant to human resources management professionals, to which Abreu contributes on a monthly basis.
Read the full article here.
