Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms
Date: 2021-03-04
Institutions: Directorate-General for Justice and Consumers, European Commission
Subjects: EU employment policy, economic discrimination, equal pay, equal treatment, gender equality, remuneration of work, sexual discrimination, working conditions

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   EUROPEAN COMMISSION  Brussels, 4.3.2021  COM(2021) 93 final 2021/0050 (COD)  Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL to strengthen the application of the principle of equal pay for equal work  or work of equal value between men and women through  pay transparency and enforcement mechanisms {SEC(2021) 101 final} - {SWD(2021) 41 final} - {SWD(2021) 42 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL  

Reasons for the proposal 

The right to equal pay between women and men for equal work or work of equal value is one 
of the EU’s founding principles enshrined in the Treaty of Rome. The requirement to ensure 
equal  pay  is  set  out  in  Directive  2006/54/EC  (the  ‘Recast  Directive’)1  as  complemented  in 
2014 by a Commission Recommendation on pay transparency (the ‘2014 Recommendation’)2. 
Despite this legal framework, the effective implementation and enforcement of this principle 
in practice remains a challenge in the EU. Lack of pay transparency has been identified as one 
of the key obstacles3. The gender pay gap4 in the EU remains around 14%. The pay gap has 
long-term impact on the quality of women’s life, their increased risk of exposure to poverty 
and on the persisting pension pay gap, which is 33% in the EU5. The Covid-19 pandemic and 
its economic and social consequences makes it even more pressing to tackle this issue, given 
that the crisis has hit female workers especially hard6. 

The  European  Parliament  has  repeatedly  called  for  more  action  at  EU  level  to  enhance  the 
application  of  the  equal  pay  provisions.  The  Council  has  called  for  action  from  both  the 
Member  States  and  the  Commission.  In  June  2019,  it  asked  the  Commission  to  develop 
concrete measures to improve pay transparency7.  

The  European  Pillar  of  Social  Rights  includes  gender  equality  and  the  right  to  equal  pay 
among  its  20  principles8.  In  its  2017-2019  action  plan  on  tackling  the  gender  pay  gap9,  the 
Commission assessed the need for further legal measures to improve the enforcement of the 
principle  of  equal  pay  and  opportunities  for  improving  pay  transparency.  In  her  political 

See  the  Commission  evaluations  and  implementation  reports  respectively  SWD(2020)50  and 

Commission  Recommendation 2014/124/EU of 7 March 2014 on strengthening the principle of equal 

1 
Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the 
implementation of the principle of equal opportunities and equal treatment of men and women in matters of 
employment and occupation  (OJ L 204, 26.7.2006, p. 23). The Directive consolidated the existing directives on 
gender equality in the field of employment, incorporating case law of the Court of Justice of the European 
Union, i.e. Directive 75/117/EEC on equal pay, Directive 86/378/EEC (as amended by Directive 96/97/EC) on 
equal treatment in occupational social security schemes, Directive 76/207/EEC (amended by Directive 
2002/73/EC) on equal treatment of men and women, and Directive 97/80/EC (amended by Directive 98/52/EC) 
on the burden of proof in cases of discrimination based on sex. 
2 
pay between men and women through transparency (OJ L 69, 8.3.2014, p. 112). 
3 
COM(2013) 861 final. 
4 
The  gender  pay  gap  indicator  measures  the  difference  between  the  average  gross  hourly  earnings  of 
male  and  female  paid  employees  as  a  percentage  of  average  gross  hourly  earnings  of  male  paid  employees, 
Eurostat, sdg_05_20. 
5 
6 
has-covid-19-rolled-back-recent-gains 
7 
EPSCO Conclusions, June 2019 (doc. 10349/19). 
8 
The Pillar of Social Rights is about delivering new and more effective rights for citizens, built upon 20 
key Principles,  See  more:  https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-
union/european-pillar-social-rights/european-pillar-social-rights-20-principles_en    
9 

https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20200207-1 
https://www.eurofound.europa.eu/publications/policy-brief/2020/women-and-labour-market-equality-

COM(2017) 678 final, see also the related implementation report (COM(2020) 101 final).  

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guidelines10, President  von der  Leyen announced  that the Commission  would bring  forward 
new  binding  pay  transparency  measures.  This  commitment  was  reaffirmed  in  the  gender 
equality strategy 2020-202511.  

This  initiative  follows  the  Commission’s  retrospective  evaluation12  of  the  relevant  legal 
provisions  (the  ‘2020  evaluation’)  and  several  other  reports  on  the  matter13.  Those 
assessments  concluded  that  the  right  to  equal  pay  is  not  adequately  applied  nor  enforced  in 
practice and that pay transparency is lacking in many Member States.  

Objectives of the proposal 

The initiative aims at tackling the persisting inadequate enforcement of the fundamental right 
to  equal  pay  and  ensuring  that  this  right  is  upheld  across  the  EU,  by  establishing  pay 
transparency standards to empower workers to claim their right to equal pay.  

The proposed directive pursues these objectives by:  

– 

– 

– 

establishing pay transparency within organisations; 

facilitating the application of the key concepts relating to equal pay, including 
‘pay’ and ‘work of equal value’; and  

strengthening enforcement mechanisms. 

Pay transparency allows workers to detect and prove possible discrimination based on sex. It 
also shines light on gender bias in pay systems and job grading that do not value the work of 
women and men equally and in a gender-neutral way, or that fail to value certain occupational 
skills  that  are  mostly  seen  as  female  qualities.  Since  such  bias  is  often  unconscious,  pay 
transparency can help raise awareness of the issue among employers and help them  identify 
discriminatory  gender-based pay  differences that  cannot  be explained by  valid discretionary 
factors  and  are  often  unintentional.  Pay  transparency  is  thus  an  essential  tool  for  dispelling 
doubts on equal  pay between men and women  and for supporting the elimination of gender 
bias in  pay practices.  It  can also  foster  change in attitudes towards women’s pay  by raising 
awareness  and  stimulating  debate  around  the  reasons  for  structural  gender  pay  differences. 
Beyond the simple compliance with the principle of equal pay, it may also constitute a trigger 
for reviewing gender equality policies more generally at company level, and promote closer 
cooperation between employers and workers’ representatives.  

• 

Consistency with existing policy provisions in the policy area 

Building on the Recast Directive and the 2014 Recommendation, this proposal introduces new 
and  more  detailed  rules  to  ensure  compliance  with  the  principle  of  equal  pay  between  men 
and women for equal work or work of equal value.  

10 
https://ec.europa.eu/commission/sites/beta-political/files/political-guidelines-next-commission_en.pdf  
11 
COM(2020)152 final. 
12 
SWD(2020)50.  
13 
Implementation  report  on  Directive  2006/54/EC  (SWD  (2013)  512  final);  impact  assessment 
accompanying the Pay Transparency Recommendation (SWD (2014) 59 final); report on the implementation of 
the Commission Recommendation on strengthening the principle of equal pay between men and women through 
transparency (COM(2017) 671 final). 

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The  European  Pillar  of  Social  Rights  and  its  20  principles  are  the  EU’s  compass  to  build  a 
fairer Europe and to promote better living and working conditions for all. On 3 March 2021, 
the Commission put forward an ambitious Action Plan to ensure its implementation across the 
EU.  

This proposed directive is part of a broader package of measures and initiatives addressing the 
root causes of the gender pay gap and economic empowerment of women. Pay discrimination 
and  bias  in  pay  structures  are  only  one  of  the  root  causes  of  this  gender  pay  gap  of  14%, 
besides  other  causes  and  factors,  such  as  horizontal  and  vertical  labour  market  segregation, 
full time versus part-time work as well as unpaid care-related constraints. Even without these 
causes and factors, there is still a so-called “unexplained” gender pay gap, which accounts for 
two thirds of the gender pay gap in the EU Member States, and which this initiative aims to 
tackle. It is also important to note that the employment history, including the gender pay gap, 
together with the design of the pension system, affects the gender pension gap. 

This  initiative  is  part  of  a  multipronged  approach,  including,  among  others,  the  Work-Life 
Balance Directive14, sectoral initiatives to fight stereotypes and improve gender balance, and a 
proposed directive on improving gender balance on the boards of large EU listed companies15.  

The proposed Directive is fully in line with the EU’s commitment to the UN 2030 agenda and 
contributes  to  the  implementation  of  the  UN  Sustainable  Developments  Goals  (SDG),  in 
particular SDG 5 on achieving gender equality and empowering all women and girls16. 

• 

Consistency with other Union policies 

This  proposal  is  coherent  with  the  initiative  aimed  at  increasing  companies’  reporting  of 
relevant non-financial information17. It is consistent with and supported by the EU minimum 
wage initiative18 and the upcoming sustainable corporate governance initiative19. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposed  directive  is  based  on  Article  157(3)  of  the  Treaty  on  the  Functioning  of  the 
European  Union  (TFEU),  which  provides  for  the  EU  to  adopt  measures  to  ensure  the 
application of the principle of ‘equal opportunities and equal treatment of men and women in 
matters of employment and occupation, including the principle of equal pay for equal work or 
work of equal value’.  

Article  157(3)  TFEU 
the  2014 
Recommendation. It therefore also serves as the legal basis for the binding pay transparency 

the  Recast  Directive  and 

legal  basis  for 

the 

is 

Directive (EU) 2019/1158 of the European Parliament and of the Council of 20 June 2019 on work-life 

https://eur-lex.europa.eu/legal-content/GA/TXT/?uri=CELEX:52012PC0614 
https://ec.europa.eu/info/strategy/international-strategies/sustainable-development-goals_en  
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12129-Revision-of-Non-

14 
balance for parents and carers and repealing Council Directive 2010/18/EU (OJ L 188, 12.7.2019, p. 79). 
15 
16 
17 
Financial-reporting-directive 
18 
19 
governance  

COM(2020) 682 final. 
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12548-Sustainable-corporate-

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measures  under  this  initiative,  which  support  the  implementation  and  better  enforcement  of 
the principle of equal pay under Article 157 TFEU and the Recast Directive. 

• 

Subsidiarity   

The implementation of the EU principle of equal pay was established at EU level already in 
the  1957  Treaty  establishing  the  European  Economic  Community  (Article  119  EEC  Treaty, 
then Article 141 EC and now Article 157 TFEU), which shows its status as a fundamental EU 
value. Initially, the principle had a primarily economic function, in that the aim was to avoid 
distortions  of  competition.  In  1976,  however,  the  Court  of  Justice  of  the  European  Union 
recognised the social objective of Article 119 EEC and its horizontal direct effect20. Later, the 
Court  added  that  ‘the  economic  aim  pursued  by  Article  119  of  the  Treaty,  namely  the 
elimination  of  distortions  of  competition  between  undertakings  established  in  different 
Member  States,  is  secondary  to  the  social  aim  pursued  by  the  same  provision,  which 
constitutes the expression of a fundamental human right’21.  

As  demonstrated  in  the  2020  evaluation,  comparable  efforts  throughout  the  EU  to  promote 
equal pay are not likely to materialise without an initiative at EU level. There is a need for a 
coordinated  approach,  the  lack  of  which  jeopardises  the  attainment  at  national  level  of  pay 
equality between men and women, pursuant to Article 157(1) TFEU.  

The fact that national pay transparency measures are fragmented and scarce increases the risk 
of competition being distorted by having different levels of social standards.  There is a risk of 
businesses competing on an uneven playing field, which would hamper the operation of the 
internal market. Action at EU level is needed in order to ensure a similar level of protection 
for workers across the EU and a level playing field for operators in the internal market.  

The  proposed  directive  is  based  on  minimal  harmonisation  of  Member  States’  systems  and 
allows them to set higher standards should they decide to. It explicitly allows them to entrust 
implementation to social partners, provided they are at all times able to guarantee delivery of 
the  required  outcomes  required  by  this  directive.  This  combined  approach,  allowing  to 
implement the mix of substantive rights and obligations set out in this Directive by collective 
agreement,  respects  different  features  of  national  social  dialogue  and  collective  bargaining 
systems and the autonomy of social partners. 

• 

Proportionality 

Article  5(4)  of  the  Treaty  on  European  Union  provides  that  ‘[u]nder  the  principle  of 
proportionality,  the  content  and  form  of  Union  action  shall  not  exceed  what  is  necessary  to 
achieve the objectives of the Treaties’. 

The 2014 Recommendation has not achieved the objective of more effective implementation 
of the equal pay principle through pay transparency; this is due to its non-binding nature and 
resulting limited implementation by Member States22. The Recast Directive should therefore 

Case 43/75, Gabrielle Defrenne v Société anonyme belge de navigation aérienne Sabena (Defrenne II) ; 

20 
Case 43/75, ECLI:EU:C:1976:56, paragraphs 8-10. 
21 
22 

Case 50/96, Deutsche Telekom AG v Lilli Schröder, ECLI:EU:C:2000:72, p. 57. 
SWD(2020)50. 

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be  complemented  and  supported  by  the  proposed  directive.  The  adoption  of  binding  legal 
measures is a proportionate response to the clear need for practical action to uphold the equal 
pay principle and does not go beyond what is necessary to achieve this goal.  

The  proportionality  principle  is  fully  respected  as  the  pay  transparency  and  enforcement 
mechanisms’  measures  are  designed  in  such  a  way  as  to  achieve  the  objective  of 
strengthening the application of the principle of equal pay between women and men. On the 
one  hand,  the  proposal  ensures  that  workers  have  the  right  to  information  on  the  basis  of 
which  they  can  detect  gender-based  pay  discrimination  and  defend  their  right  to  equal  pay 
and,  on  the  other  hand,  it  takes  account  of  possible  costs  and  burdens  for  employers, 
especially micro, small and medium-sized companies. 

As indicated in the accompanying impact assessment, the associated costs are expected to be 
moderate23.  They  are  justified  in  the  light  of  the  accrued,  longer-term  benefits:  the  main 
benefit is the full protection of a fundamental EU value. In addition, it contributes to the EU’s 
wider social  ambitions as  set  out  in  the European Pillar of Social Rights. Moreover, further 
benefits may come from more secure employment, workforce retention and more productive 
workers and firms. Therefore, it will have a positive impact on business profitability and the 
functioning of the internal market. 

The  proposal  leaves  the  Member  States  the  option  of  keeping  or  setting  more  favourable 
standards for workers through more proactive provision of pay information and reporting. It 
also  takes  account  of  the  diversity  of  labour  market  models  across  the  EU  and  it  allows 
Member States to entrust the social partners with the implementation of the directive. 

In  the  light  of  the  above,  since  the  objective  of  improving  pay  transparency  cannot  be 
sufficiently  achieved  by  the  Member  States,  but  can  (by  reason  of  the  need  to  establish 
common minimum requirements) be better achieved at EU level, the EU may adopt measures, 
in accordance with the principles of subsidiarity and proportionality (set out in Articles 5(3) 
and 5(4) TFEU).  

• 

Choice of instrument 

A  legal  instrument  in  the  form  of  a  directive  laying  down  a  framework  to  enhance  the 
application of the equal pay principle through pay transparency and strengthened enforcement 
mechanisms  is  considered  as  the  appropriate  instrument.  It  makes  it  possible  to  strengthen 
existing provisions while leaving Member States discretion as to how to implement the new 
rights and obligations taking into account their national context. This approach is in line with 
that taken in regard to other matters in EU law on employment and discrimination24.  

23 
The impact assessment’s estimated cost related to the individual right of information was 20 EUR per 
single  request  (the  total  cost  per  company  thus  depending  on  number  of  requests),  while  the  overall  cost  for 
employers’ pay reporting  would  amount to between a  minimum of 379-508 EUR and a  maximum of 721-890 
EUR per employer depending on the size. Depending on actual pay differences requiring a joint pay assessment, 
the average cost per employer to carry out such assessment was estimated between a minimum of 1,180-1,724 
EUR and a maximum of 1,911 and 2,266 EUR. See SWD (2021) 41, p. 74. 
24 
For example, Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 on 
the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of 
services  and  amending  Regulation  (EU)  No  1024/2012  on  administrative  cooperation  through  the  Internal 

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It was decided not to amend or replace the Recast Directive due to its wider scope to combat 
sex-based  discrimination  in  employment  and  occupation;  a  self-standing  chapter  concerning 
pay  transparency  and  related  enforcement  provisions  would  not  fit  the  existing  structure  of 
that  directive  and  would  be  disproportionate  in  relation  to  the  provisions  of  the  Recast 
Directive regulating other aspects of equal treatment of women and men in employment and 
occupation matters. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The 2020 evaluation of the legal framework on equal pay, in particular the relevant parts of 
the  Recast  Directive  and  the  2014  Recommendation,  concluded  that  the  Recast  Directive  is 
considered  relevant  by  all  stakeholders  and  that  compliance  with  it  in  Member  States  and 
across sectors is medium to high. However, the effective implementation of the principle of 
equal  pay  and the enforcement of this  principle  in  practice remains  a  challenge.  It  could  be 
more effective if the legal concepts of ‘pay’ and ‘work of equal value’ were to be clarified on 
the basis of the case law of the Court of Justice of the European Union. These concepts are 
not  defined  uniformly  across  national  legislations  and  uncertainties  of  interpretation  and 
application  remain.  The  availability  of  clear  criteria  across  the  EU  would  contribute  to  the 
effective application of the equal pay principle. 

As regards efficiency, the 2020 evaluation did not find evidence of significant administrative 
burden linked to the implementation of the Recast Directive and the 2014 Recommendation. 
The pay transparency measures proposed in the 2014 Recommendation involved only limited 
costs  for  employers.  Intangible  costs  could  arise  from  possible  dissatisfaction  (and  hence 
lower  productivity)  among  workers  who  become  aware  of  large  wage  differences  between 
men  and  women,  while  it  may  also  have  a  positive  impact  on  job  satisfaction  and  worker 
engagement,  increasing  employer  attractiveness.  The  lack  of  pay  transparency  impaired 
individuals’  ability  to  detect  and  challenge  gender  pay  discrimination.  In  addition,  workers 
filing a pay discrimination complaint faced several obstacles to access to justice and ran the 
risk of stigmatisation and retaliation by the employer.  

The  2020  evaluation  confirmed  that  the  Recast  Directive  brings  clear  EU  added  value, 
generating action that would otherwise not have been taken to promote the equal pay principle 
in  Member  States.  However,  the  EU  added  value  was  limited  by  insufficient  and  diverse 
implementation of the directive and confusion (especially in the courts and among employers 
and workers) around legal concepts central to the implementation of equal pay measures. 

• 

(a) 

Stakeholder consultations 
Advisory Committee on equal opportunities for women and men25 

Market Information System (OJ L 159, 28.5.2014, p. 1) and Directive 2014/54/EU of the European Parliament 
and of the Council of 16 April 2014 on measures facilitating the exercise of rights conferred on workers in the 
context of freedom of movement for workers (OJ L 128, 30.4.2014, p. 8).  
25 
The  Advisory  Committee  was  established  under  Commission  Decision  2008/590/EC  setting  up  an 
Advisory Committee on Equal Opportunities for Women and Men. It assists the Commission in formulating and 

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In  an  opinion  adopted  in  December  201726,  the  Advisory  Committee  pointed  to  greater 
transparency on wages as the first step in ensuring the application of the equal pay principle. 
It highlighted a lack of transparency at three levels:  

– 

– 

– 

companies rarely publish salary scales and the criteria for setting wages remain 
unclear;  

there is no clear legal enforcement of pay transparency; and  

the monitoring of the application of national measures is incomplete.  

The  Committee  called  for  action  to  improve  pay  transparency  by  establishing  an  individual 
right to request and obtain information on both individual and aggregated pay levels, so as to 
prevent the creation of adversarial workplaces. This right could also be given to local union 
representatives or other worker’s representatives. 

Public consultations and targeted surveys 

(b) 
A  public  consultation27  was  carried  out  from  11  January  through  5  April  2019,  in  order  to 
collect information, views and experiences on problems appearing from gaps and weaknesses 
of national and EU pay transparency measures. It also sought evidence on the extent to which 
the  2014  Recommendation  had  helped  to  reinforce  the  implementation  of  the  equal  pay 
principle  enshrined  in  Article  157  TFEU  and  the  Recast  Directive.  Finally,  the  respondents 
replied  to  forward-looking  questions  on  relevant  aspects  of  the  transparency  initiative, 
including the need for further EU-level action to address gender-based pay discrimination28.  

In  response  to  the  subsequent  public  consultation  (5  March  to  28  May  2020),  national 
authorities,  trade  unions,  employers’  organisations,  business  associations,  non-governmental 
organisations  and  private  individuals  gave  their  views  on  gender-based  pay  discrimination, 
pay transparency and challenges relating to the enforcement of the right to equal pay for the 
same work or work of equal value29.  

Finally, the Commission  organised three targeted surveys of Member States, social  partners 
and employers30.  

Impact assessment 

• 
The impact assessment report accompanying this proposal31: 

implementing EU activities aimed at promoting equal opportunities for women and men. It also fosters ongoing 
exchanges  of  relevant  experience,  policies  and  practices  between  the  Member  States  and  the  various  parties 
involved. 
26 
https://ec.europa.eu/info/sites/info/files/adopted_opinion_gpg.pdf 
27 
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/1839-Evaluation-of-the-
provisions-in-the-Directive-2006-54-EC-implementing-the-Treaty-principle-on-equal-pay-/public-consultation  
28 
29 
proposal. 
30 
proposal. 
31 

For a summary of the responses, see Annex 2 to the 2020 evaluation report. 
For  a  summary  of  the  responses,  see  Annex  2  to  the  impact  assessment  report  accompanying  this 

For  a  summary  of  the  responses,  see  Annex  2  to  the  impact  assessment  report  accompanying  this 

SWD (2021) 41. 

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– 

– 

– 

describes  the  problems  arising  from  the  implementation  of  the  current  legal 
framework and its enforcement;  

sets out policy options for addressing these problems; and  

assesses the social and economic impact of the policy options.  

The policy options involve creating transparency at the level of individual workers, creating 
transparency at  employers’ level and facilitating the implementation and enforcement of the 
existing  legal  framework.  The  options  provide  differentiated  scenarios  ranging  from 
maximum intervention (in terms of coverage of the workforce and organisations) to minimum 
intervention (balancing workers’ fundamental right to equal pay with the possible burden and 
costs of the envisaged measures for employers). 

The  impact  assessment  concluded  that  the  combination  of  measures  proposed  here  was  the 
most  proportionate  and  coherent  in  the  light  of  the  general  and  specific  objectives  of  this 
initiative. 

The specific national impacts will depend on a number of factors, including the extent of the 
necessary  legislative  adjustments  and  the  broader  socioeconomic  context.  Overall,  benefits 
can  be  expected  in  terms  of  greater  awareness  among  employers,  of  workers  being 
empowered through better enforcement of their right to equal pay for the same work or work 
of  equal  value,  a  reduction  of  gender  bias  in  pay  structures,  addressing  the  systemic 
undervaluation  of women’s work, and ultimately a reduction in  the share of the  gender pay 
gap  possibly  due  to  pay  discrimination.  Effects  at  macroeconomic  level  could  also  be 
expected  though  they  cannot  be  estimated  with  precision,  as  the  precise  size  of  pay 
discrimination (and therefore its contribution to the gender pay gap) is not available. Greater 
pay equality could boost total gross earnings at EU level and reduce market income inequality 
in all Member States. Furthermore, the ‘at risk of poverty’ rate is expected to decrease, with 
the risk of poverty mostly  reduced  for single parent  households (of which women represent 
85%). Overall, the initiative could lead to a rise in government revenues from direct taxes and 
social  contributions  and  a  rise  in  aggregate  demand  following  the  increase  in  total  gross 
earnings. 

Eliminating gender bias in employers’ pay setting practices will have a positive effect on job 
satisfaction  and  worker  engagement,  both  crucial  in  a  post-crisis  context.  In  turn,  it  may 
benefit  employers  through  better  retention  of  talent,  improved  reputation  and  consequently 
potential  higher  profits.  Enhanced  enforcement  measures  will  improve  access  to  justice  and 
the enforcement of rights granted under EU law. Clearer rules will promote the understanding 
and awareness of the legal framework and enhance consistency in its application. 

The  draft  impact  assessment  was  endorsed  by  the  Regulatory  Scrutiny  Board  (RSB)  on  27 
January  2021.  The  opinions  of  the  Board,  the  final  impact  assessment  and  its  executive 
summary are published together with this proposal.  

• 

Regulatory fitness and simplification 

The  Commission  has  looked  at  ways  of  simplifying  and  reducing  burdens,  in  particular  for 
smaller  companies.  The  measures  in  this  proposal,  which  are  based  on  national  practices  in 
the  EU  and  elsewhere,  are  designed  to  strengthen  the  right  to  equal  pay  while  limiting 
possible costs and burdens and taking account of the difficult economic situation in the EU as 
a  result  of  the  COVID-19  pandemic.  The  proposal  thus  takes  account  of  the  principle  of 
proportionality. In particular, given the potential effort required to extract and report on pay 
information, the reporting obligation applies only to employers with at least 250 workers. The 

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joint pay assessment will apply only to those employers in respect to which, following their 
annual report, there is a strong reason to believe that problems of gender pay inequalities may 
exist.  The  analysis  shows  that  the  measures  proposed  in  this  directive  involve  modest  costs 
and  no  evidence  was  presented  of  cheaper  ways  of  achieving  the  same  objectives  with  the 
same effectiveness.  

• 

Fundamental rights 

The  objectives  of  this  proposal  are  in  line  with  the  Charter  of  Fundamental  Rights  of  the 
European Union, in particular Article 23, which provides that ‘equality between women and 
men  must  be  ensured  in  all  areas,  including  employment,  work  and  pay’,  and  Article  31, 
which provides that ‘every worker has the right to working conditions which respect his or her 
health, safety and dignity’.  

Furthermore, Article 27 of the Charter stipulates that ‘workers or their representatives must, at 
the appropriate levels, be guaranteed information and consultation in good time in the cases 
and under the conditions provided for by Union law and national laws and practices’. 

4. 

BUDGETARY IMPLICATIONS 

The proposal does not require additional resources from the EU budget. 

5. 

• 

OTHER ELEMENTS 

Monitoring, evaluation and reporting arrangements 

Member States must transpose this directive within 2 years of its adoption and communicate 
their transposition measures to the Commission. In line with Article 30 of the directive, they 
may entrust the social partners with the transposition through collective agreements. 

To assess how effectively this initiative achieves its general and specific objectives, Member 
States will report on its application after 8 years. The Commission will adopt a report on that 
basis.  

• 

Detailed explanation of the specific provisions of the proposal 

Chapter I – General provisions  

Article 1 – Purpose and subject matter  

This provision specifies the purpose and subject matter of the Directive. The Directive aims at 
laying  down  minimum  requirements  strengthening  the  application  of  the  principle  of  equal 
pay between men and women and the prohibition of discrimination on grounds of sex through 
pay transparency and reinforced enforcement mechanisms. 

Article 2 – Scope  

This provision defines the personal scope of the Directive, i.e. persons entitled to benefit from 
the rights provided by this Directive. 

Article 3 – Definitions 

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This  provision  defines  the  terms  and  concepts,  clarifying  upfront  how  they  should  be 
understood in the context of the Directive.  

These  terms  and  concepts  include  the  relevant  existing  definitions  of  the  Recast  Directive 
(pay, direct discrimination, indirect discrimination) but also new concepts specifically related 
to the right of equal pay, such as pay levels, pay gap, median pay, median pay gap, quartile 
pay band, and categories of workers.  

The concept of ‘pay’ includes salary and any other consideration, whether in cash or in kind, 
which the workers receive directly or indirectly (‘complementary or variable components’), in 
respect of their employment from their employer. This includes any additional benefits such 
as bonuses, overtime compensation, travel facilities (including cars provided by the employer 
and travel cards), housing allowances, compensation for attending training, payments in case 
of dismissal, statutory sick pay, statutory required compensation and occupational pensions. It 
should include all elements of remuneration due by law or collective agreement.  

involve  an 

Gender-based  pay  discrimination  may 
intersection  of  various  axes  of 
discrimination:  on  the  basis  of  sex  on  the  one  hand,  and  racial  or  ethnic  origin,  religion  or 
belief,  disability,  age  or  sexual  orientation  (as  protected  under  Directive  2000/43/EC  or 
Directive  2000/78/EC)  on  the  other  hand.  A  new  definition  aims  at  clarifying  that,  in  the 
context  of  gender  pay  discrimination,  such  combination  should  be  taken  into  account,  thus 
removing any doubt that may exist in this regard under the existing legal framework. This will 
ensure  that  the  courts  or  other  competent  authorities  take  due  account  of  any  situation  of 
disadvantage  arising  from  intersectional  discrimination,  in  particular  for  substantive  and 
procedural purposes, including to recognise the existence of discrimination, to decide on the 
appropriate  comparator,  to  assess  the  proportionality,  and  to  determine,  where  relevant,  the 
level  of  compensation  awarded  or  penalties  imposed.  One  particular  case  of  such 
intersectionality  refers  to  the  situation  of  migrant  women  who  may  risk  multiple  forms  of 
discrimination based on their sex, racial or ethnic origin, or religion or belief. 

Article 4 – Equal work and work of equal value  

Respect for the right to equal pay between women and men, enshrined in the Treaty, requires 
employers to have pay structures ensuring that women and men are paid equally for the same 
work  or  work  of  equal  value.  In  order  to  allow  workers  and  employers  to  assess  what 
constitutes  work  of  equal  value,  this  provision  requires  Member  States  to  establish  tools  or 
methodologies to assess and compare the value of work in line with a set of objective criteria 
which  include  educational,  professional  and  training  requirements,  skills,  effort  and 
responsibility, work undertaken and the nature of the tasks involved. This provides the basis 
to assess whether workers are considered to be in a comparable situation performing work of 
equal value and will help employers to better categorize and remunerate job positions based 
on objective, gender-neutral criteria. 

The  availability  of  clear  criteria  at  national  level  will  help  workers  to  establish  a  valid 
comparator  and  assess  whether  they  are  treated  less  favourably  than  the  comparator 
performing the same work or work of equal value.  

This provision further incorporates two clarifications established in the case law of the Court 
of Justice of the European Union. Firstly, the Court has clarified32 that in order to determine 
whether  workers  are  in  a  comparable  situation,  the  comparison  is  not  necessarily  limited  to 

32 

Case C-320/00 Lawrence, ECLI:EU:C:2002:498. 

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situations  in  which  men  and  women  work  for  the  same  employer.  Workers  may  be  in  a 
comparable situation even when they do not work for the same employer, whenever the pay 
conditions  can  be  attributed  to  a  single  source  setting  those  conditions  (e.g.  arising  from 
statutory  provisions,  collective  labour  agreements  relating  to  pay  applicable  to  several 
companies, or when the terms and conditions of employment are laid down centrally for more 
than  one  company  within  a  holding  corporation  or  conglomerate).  The  Court  also  clarified 
that  the  comparison  is  not  limited  to  workers  employed  at  the  same  time  as  the  claimant.33 
The  incorporation  of  these  clarifications  will  improve  the  application  in  practice  of  the 
principle of equal pay. 

Furthermore,  in  case  no  real-life  comparator  exists,  a  comparison  with  a  hypothetical 
comparator  or  using  other  evidence  (statistical  or  other  available  information)  allowing  to 
presume  alleged  discrimination  should  be  permitted.  The  possibility  to  use  a  hypothetical 
comparator will allow a worker to show that they have not been treated in the same way as a 
hypothetical comparator of another sex would have been treated. 

Finally, this provision recalls the requirement set out in Article 4, paragraph 2 of the Recast 
Directive, that where job evaluation and classification systems are used for determining pay, 
they should be based on the same gender-neutral criteria for both men and women to exclude 
any discrimination on grounds of sex. This means that the criteria to evaluate the value of a 
job or position must be described and defined in a way applicable to both men’s and women’s 
jobs in an objective and neutral way. 

Chapter II – Pay transparency  

Article 5 – Pay transparency prior to employment 

So  far,  no  minimum  standards  on  pay  transparency  prior  to  employment  exist  at  EU  level. 
This  provision  requires  that  employers  indicate  the  initial  pay  level  or  its  range  (based  on 
objective and gender-neutral criteria) to be paid to the future worker for a specific position or 
job. Such information may be provided in a job vacancy notice or otherwise prior to the job 
interview  without  the  applicant  having  to  request  it  (for  instance,  in  the  invitation  to  the 
interview or directly by the social partners). 

In addition, it prohibits employers to ask prospective workers about their pay history of their 
former employment relationship.  

The aim of this provision is to ensure that workers have the necessary information to engage 
in balanced and fair negotiations regarding their salaries when they enter into an employment 
relationship. It would also ensure that existing pay discrimination and bias is not perpetuated 
over time, especially when workers change jobs. This does not limit the employer’s, worker’s 
or  social  partners’  bargaining  power  to  negotiate  a  salary  outside  the  indicated  range.  This 
transparency measure would also address intersectional discrimination where non-transparent 
pay settings allow for discriminatory practices on several discrimination grounds. 

Article 6 – Transparency of pay setting and career progression policy  

In order to ensure the gender-neutrality of pay setting and career progression, this provision 
requires employers to make accessible to workers a description of the gender-neutral criteria 

33 

Case 129/79 Macarthys, ECLI: ECLI:EU:C:1980:103. 

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used  to  define  their  pay  and  career  progression.  Where  appropriate,  to  avoid  unreasonable 
burden  on  micro  and  small  enterprises,  an  employer  may  have  flexibility  in  the  way  it 
complies with this obligation taking into account its size, based on the number of employees. 

Article 7 – Right to information   

This  provision  aims  at  providing  workers  with  the  necessary  information  to  assess  whether 
they  are  paid  in  a  non-discriminatory  manner  compared  to  other  workers  in  the  same 
organisation  carrying  out  equal  work  or  work  of  equal  value,  and  to  enforce  their  right  to 
equal pay if needed. 

This  provision  is  based  on  the  existing  2014  Commission’s  Recommendation  on  pay 
transparency. It provides the right to workers to request  information from their employer on 
their individual pay level and on the average pay levels, broken down by sex, for categories of 
workers doing the same work or work of equal value.  

The  employer  is  obliged  to  inform  all  workers,  on  an  annual  basis,  of  their  right  to  receive 
such  information  and  provide  the  requested  information  within  a  reasonable  period  of  time 
and in accessible formats for workers with disabilities upon their request.  

To address possible reprisals or a fear of reprisals by the employer on the part of workers, the 
provision allows them to request the information through their representatives or through an 
equality body.   

In order to further assist possible victims of gender pay discrimination, the provision prohibits 
confidentiality clauses insofar as the disclosure of pay information aims at enforcing the right 
of equal pay between men and women for equal work or work of equal  value. On the other 
hand, employers may request that the use of any information obtained remains limited to the 
enforcement of the right to equal pay. 

Article 8 – Reporting on pay gap between female and male workers 

This  provision requires employers with  at  least  250 workers to  make publicly available and 
accessible certain information such as the pay gap between female and male workers in their 
organisation,  also  in  complementary  or  variable  components  (see  explanation  of  Article  3 
above), beyond the ordinary basic salary.  

The  information  provided  under  letters  (a)  to  (f)  in  paragraph  1  of  this  Article  is  based  on 
information  that  is  readily  available  within  an  organisation  and  gives  an  overall  picture  of 
gender differences in pay in the organisation, e.g. the distribution of workers by gender in the 
quartile pay bands informs on the proportion of women in the highest/lowest paid positions. 
The  publication  of  this  information  allows  for  a  certain  comparison  between  employers, 
which  creates  incentives  for  employers  to  prevent  potential  pay  gaps,  stimulates  debate 
around pay equality and triggers action.  

The  information  referred  to  under  letter  (g)  in  paragraph  1  of  this  Article,  on  the  pay  gap 
between female and male workers by categories of workers doing the same work or work of 
equal  value,  is  employer-specific  and  more  sensitive  than  overall  pay  gap  figures.  The 
categorization  of  workers  performing  work  of  equal  value  is  based  on  a  combination  and 
weight of criteria, which are relevant to the specific employer concerned. The differences in 
pay by category are therefore not comparable across employers, which is the reason why this 
information  should  not  be  made  public.  Employers  should  provide  such  information  to  all 
workers and their representatives, and labour inspectorate and equality bodies should be able 
to obtain the information upon request. Information on the pay gap between female and male 

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workers by categories of workers will be instrumental to reinforce a self-regulatory approach 
by  employers  and  enable  workers  and  their  representatives  to  require  compliance  with  the 
principle  of  equal  pay.  This  information  also  serves  as  a  trigger  to  launch  a  joint  pay 
assessment as set out in Article 9. 

As  an  alternative  measure  to  pay  reporting  by  employers,  especially  to  limit  the  possible 
burden  pay  reporting  may  entail,  Member  States  can  choose  to  entrust  an  existing  body  to 
compile the required information on the basis of administrative data, such as data provided by 
employers to the tax or social security authorities, and make the information available instead 
of  employers.  The  provision  further  requires  the  monitoring  body  designated  pursuant  to 
Article  26  to  collect  the  data  received  from  employers,  ensuring  wide  access  allowing  a 
comparison of the data of individual employers, sectors and regions within the Member State 
concerned. 

Based  on  the  information  provided,  workers  and  their  representatives,  labour  inspectorates 
and equality bodies have the right to ask the employer for clarifications and details regarding 
such  information,  including  explanations  concerning  any  gender  pay  differences.  The 
employer  is  required  to  respond  to  such  requests  within  a  reasonable  time  by  providing  a 
substantiated reply. In case gender pay differences are not justified by objective and gender-
neutral factors, the employer is required to remedy the situation in close cooperation with the 
workers’ representatives, the labour inspectorate and/or the equality body. 

Article 9 – Joint pay assessment  

Where the pay reporting conducted in accordance with Article 8 demonstrates a difference of 
average pay between female and male workers in the organisation of at least 5 per cent in any 
category of workers doing the same work or work of equal value, which has not been justified 
by objective and gender-neutral factors, the employer concerned shall be obliged to carry out 
a pay assessment. The employer is  required to justify any pay difference in any category of 
workers, including differences below 5 per cent, by objective and gender-neutral factors and 
remedy the situation pursuant to Article 8 paragraph 7.  

The  joint  pay  assessment  should  be  conducted  by  employers  in  cooperation  with  workers’ 
representatives.  If  formal  workers’  representatives  are  absent  in  the  organisation,  the 
employer should designate one or more workers for this purpose.    

The requirement of a joint pay assessment aims at triggering mandatory action on the part of 
employers to look into their pay setting practices and address any potential gender bias in pay 
structures  infringing  the  equal  pay  principle.  The  cooperation  between  employers  and 
workers’ representatives ensures a supported approach and leads to common action.  

Differences  in  average  pay  levels  between  female  and  male  workers  in  each  category  of 
worker  doing  the  same  work  or  work  of  equal  value  must  be  objectively  justified,  as 
established  jointly  by  workers’  representatives  and  the  employer.  Where  the  differences 
cannot  be  justified  by  objective  factors,  the  employer  must  take  remedial  measures;  where 
previous assessments took place, the employer must include a report on the effectiveness of 
any  measures  taken  pursuant  to  such  assessments.  The  measures  should  be  taken  in  close 
cooperation  with  workers’  representatives,  the  labour  inspectorate,  and/or  the  equality  body 
and  should  include  the  establishment  of  gender-neutral  job  evaluation  and  classification  to 
ensure that any direct or indirect pay discrimination on grounds of sex is excluded. 

Article 10 – Data protection  

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The  provision  prescribes  that  the  potential  processing  and/or  disclosure  of  personal  data 
pursuant  to  the  pay  transparency  measures  under  this  Directive  should  be  carried  out  in 
accordance with the General Data Protection Regulation (EU) 2016/679 (GDPR)34. 

It specifies that any personal data collected by employers pursuant to Articles 7, 8 or 9, shall 
not be used for any other purpose than to implement the principle of equal pay for the equal 
work or work of equal value. 

An additional safeguard is foreseen in case the disclosure of information pursuant to Articles 
7,  8  and  9  would  lead  to  the  disclosure,  either  directly  or  indirectly,  of  the  pay  of  an 
identifiable  co-worker.  Member  States  may  decide  that  in  such  case,  accessibility  of  the 
information shall be limited to the workers’ representatives or to the equality body. These will 
advise  the  worker  regarding  a  possible  claim,  without  disclosing  actual  pay  levels  of 
individual workers doing the same work or work of equal value. As certain information about 
pay levels may already be publicly available, for instance in the public sector, Member States 
shall be allowed to implement this safeguard in accordance with national practice.   

Article 11 – Social dialogue 

The involvement  of social  partners in  advancing gender equality in  employment relations is 
important. They are best placed to detect the strengths and weaknesses of action at national, 
regional, and local level to prevent and combat pay discrimination based on sex. They play a 
key role, for instance, in setting up gender-neutral job evaluation and classification methods. 
Therefore,  this  article  requires  Member  States,  without  prejudice  to  the  autonomy  of  social 
partners  and  in  accordance  with  national  law  and  practice,  to  ensure  that  the  rights  and 
obligations  under  this  Directive  are  discussed  with  social  partners.  This  could  be  achieved 
through different policy measures aimed at developing active social partnership.  

Chapter III – Remedies and enforcement  

Article 12 – Defence of rights 

Building  on  Article  17  of  the  Recast  Directive,  this  provision  requires  Member  States  to 
ensure the availability of judicial procedures for the enforcement of the rights and obligations 
under this Directive. It strengthens access to justice by clarifying that prior recourse to non-
judicial  proceedings  may  consist  of  conciliation  or  proceedings  before  an  equality  body.  In 
any event, access to justice should not be hindered by mandatory intermediate administrative 
proceedings.   

Article 13 – Procedures on behalf or in support of workers 

This  provision  requires  that  associations,  organisations,  equality  bodies  and  workers’ 
representatives or other legal entities with an interest in  ensuring equality between men and 
women  can  engage  in  judicial  or  administrative  procedure  for  the  enforcement  of  the 
obligations  under  this  proposal.  Such  entities  should  have  the  right  to  act  on  behalf  or  in 

34 
Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27  April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of such 
data, and repealing Directive 95/46/EC, OJ L 119, 4.5.2016, p. 1. 

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support  of  a  worker,  with  the  worker’s  approval,  in  such  procedures.  Especially  equality 
bodies do not currently have the right to bring claims in court in all the Member States. 

In  addition,  this  provision  also  introduces  the  right  for  equality  bodies  and  workers’ 
representatives  to  bring  claims  on  behalf  of  more  than  one  worker,  with  the  workers’ 
approval.  This  aims  at  overcoming  the  procedural  and  cost-related  obstacles  that  victims  of 
gender pay discrimination face when seeking to enforce their right to equal pay and to enforce 
the  transparency  measures  under  this  proposal.  The  possibility  to  bring  collective  claims  is 
limited to recognised bodies, i.e. equality bodies and workers’ representatives.  

Article 14 – Right to compensation 

A strengthened requirement to compensation will provide incentives for victims of gender pay 
discrimination  to  seek  justice  and  uphold  their  right  to  equal  pay.  This  provision  requires 
Member States to ensure that any worker who has suffered harm caused by an infringement of 
any right or obligation related to the principle of equal pay has the right to claim and to obtain 
full compensation for the harm caused in a way, which is dissuasive and proportionate to the 
damage suffered. 

Building on Article 18 of the Recast Directive, this provision requires, in line with the Court 
of  Justice’s  case  law,  the  discriminated  worker  to  be  placed  in  the  position  in  which  that 
person would have been if no discrimination had occurred. This includes the full recovery of 
back  pay  and  related  bonuses  or  payments  in  kind,  compensation  for  lost  opportunities  and 
moral prejudice. It finally provides that compensation or reparation may not be restricted by 
setting a prior ceiling. 

Article 15 – Other remedies 

In order to step up enforcement of the right to equal pay this provision ensures that courts or 
competent authorities can issue injunction orders establishing an infringement of any right or 
obligation relating to the principle of equal pay between men and women for equal work or 
work  of  equal  value  and  to  stop  such  infringement.  Furthermore,  courts  or  competent 
authorities must be able to require the defendant to take structural or organisational measures 
to comply with its obligations relating to equal pay.  

In  order  to  ensure  swift  compliance,  the  courts  or  competent  authorities  may  impose  a 
recurring penalty payment.  

Article 16 – Shift of burden of proof 

As already set out in Article 19 of the Recast Directive, this provision requires that in cases of 
prima facie discrimination, it is for the defendant to prove that there has been no breach of the 
principle of equal pay. In addition, in legal or administrative proceedings concerning direct or 
indirect discrimination, and in line with the existing case law35, this Directive strengthens the 
position  of  the  worker:  in  case  the  employer  did  not  comply  with  the  pay  transparency 

35 
Arbejdsgiverforening, acting on behalf of Danfoss, ECLI:EU:C:1989:383. 

Case  C-109/88,  Handels- 

og  Kontorfunktionærernes  Forbund 

I  Danmark 

v  Dansk 

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obligations  set  out  by  the  Directive,  the  burden  of  proof  should  be  shifted  to  the  defendant 
without requiring the worker to establish even a prima facie case of discrimination. 

The strengthening of the shift  of the burden of proof will not  only facilitate enforcement of 
their right to equal pay by workers but also provide an additional incentive for employers to 
comply with their transparency obligations under this Directive. 

Article 17 – Access to evidence 

This  article provides  that  national  courts or other competent  authorities  be able to  order the 
defendant to disclose relevant evidence lying in their control, during proceedings concerning a 
gender pay discrimination claim.  In particular, national courts shall have the power to order 
the disclosure of evidence containing confidential information where they consider it relevant 
to  the  claim  while  having  effective  measures  to  protect  such information.  Confidential 
information  could  take  the  form  of  legal  advice  given  to  the  management,  a  protocol  of  a 
shareholders’ meeting, personal data etc. necessary for the exercise or defence of legal gender 
pay discrimination claims.  

Article 18 – Limitation periods 

Short limitation periods and related procedural obstacles were identified as one of the barriers 
preventing victims of pay discrimination from enforcing their equal pay right. This is why this 
Directive  establishes  common  standards  on  limitation  periods  for  bringing  gender  pay 
discrimination claims.  

It provides that the limitation period for bringing claims under this proposal must be at least 
three years and should not begin to run before the violation of the equal pay principle or any 
infringement  of  the  rights  or  obligations  under  this  Directive  has  ceased  and  the  claimant 
knows  about  the  violation.  Furthermore,  a  limitation  period  should  be  suspended  or 
interrupted as soon as a claimant undertakes action by lodging a claim or bringing the claim to 
the  attention  of  the  employer,  the  workers’  representatives,  labour  inspectorate  or  equality 
body.  

Article 19 – Legal and judicial costs 

The costs of litigation constitute a key procedural obstacle creating a serious disincentive for 
victims of gender pay discrimination to claim their right to equal pay, leading to insufficient 
protection  and  enforcement  of  the  right  to  equal  pay.  In  order  to  ensure  a  greater  access  to 
justice and to incentivise workers to enforce their right, this provision ensures that claimants 
who  prevail  on  a  pay  discrimination  claim  have  the  right  to  recover  legal  and  experts’  fees 
and costs from the defendant. It specifies, on the other hand, that defendants who prevail on a 
pay discrimination claim shall not have a similar right, i.e. to recover any legal and experts’ 
fees  and  costs  from  the  claimant(s),  except  where  the  claim  was  brought  in  bad  faith,  was 
frivolous  or  where  the  non-recovery  is  considered  unreasonable  under  the  specific 
circumstances  of  the  case  (e.g.  in  the  case  of  micro-enterprises  with  a  weak  financial 
situation). 

Article 20 – Penalties 

This  provision  strengthens  the  existing  minimum  standards  on  penalties  to  apply  to  any 
infringement of the rights and obligations relating to equal pay between men and women for 
the  same  work  or  work  of  equal  value  by  furthering  the  deterrence  effect  for  employers 

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engaging in illegal behaviour. At the same time, meaningful penalties have a preventive effect 
in stimulating employers to comply pro-actively with their obligations. 

Any penalties set in Member States should include fines, the amount of which must take into 
account  a  number  of  aggravating  elements  such  as  the  gravity  and  duration  of  the 
infringement as well as any intent or serious negligence on the part of the employer.  

This  Article  also  requires  Member  States  to  establish  specific  penalties  applied  to  repeated 
infringements of the rights and obligations related to the principle of equal pay between men 
and women for equal work or work of equal value. Such penalties could include, for instance, 
the  revocation  of  public  benefits  or  the  exclusion,  for  a  certain  period  of  time,  from  any 
further award of financial or credit inducements.  

Article 21 – Equal pay matters in public contracts or concessions 

In  accordance  with  Directive  2014/23/EU36,  Directive  2014/24/EU37,  and  Directive 
2014/25/EU38,  Member  States  should  take  appropriate  measures  to  ensure  that,  in  the 
performance  of  public  contracts  or  concessions,  economic  operators  (including  the 
subcontracting  chain  thereafter)  comply  with  the  obligations  relating  to  equal  pay  between 
men  and  women.  This  means  that  they  should  in  particular  ensure  that  economic  operators 
have pay setting mechanisms that do not lead to a pay gap between female and male workers 
that  cannot  be  justified  by  gender-neutral  factors  in  any  category  of  workers  carrying  out 
equal work or work of equal value. 

Furthermore,  in  implementation  of  these  obligations,  Member  States  should  consider  for 
contracting  authorities  to  introduce,  as  appropriate,  penalties  and  termination  conditions 
ensuring  compliance  with  the  principle  of  equal  pay  in  the  performance  of  public  contracts 
and  concessions.  This  provision  also  clarifies  that  the  existing  optional  exclusion  grounds 
under Directive 2014/23/EU, Directive 2014/24/EU, and Directive 2014/25/EU can be used to 
exclude an operator violating the principle of equal pay. 

The obligations set in this provision fall within applicable obligations in the field of social and 
labour  law  set  in  Articles  18(2)  and  71(1)  of  Directive  2014/24/EU  on  public  procurement, 
Articles 36(2) and 88(1) of Directive 2014/25/EU on procurement by entities operating in the 
water, energy, transport and postal services sectors and Articles 30(3) and 42(1) of Directive 
2014/23/EU  on  the  award  of  concession  contracts.  Clarifying  and  explicitly  referring  to  the 

Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award 

Directive  2014/24/EU of  the  European  Parliament  and  of  the  Council  of  26  February  2014 on  public 

36 
of concession contracts, OJ L 94, 28.3.2014, p. 1. 
37 
procurement and repealing Directive 2004/18/EC, OJ L 94, 28.3.2014, p. 65. 
38 
Directive  2014/25/EU  of  the  European  Parliament  and  of  the  Council  of  26  February  2014  on 
procurement  by  entities  operating  in  the  water,  energy,  transport  and  postal  services  sectors  and  repealing 
Directive 2004/17/EC, OJ L 94, 28.3.2014, p. 243. 

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above provisions is intended to support and strengthen their implementation in regard to  the 
right to equal pay.   

Article 22 – Victimisation and protection against less favourable treatment 

Workers and their representatives should not be treated less favourably after having exercised 
their  right  to  equal  pay  or  any  right  provided  for  in  this  directive.  Member  States  should 
introduce, at  national  level,  measures to  protect  workers, including workers' representatives, 
against  dismissal  or  any  other  adverse  treatment  by  employers  following  a  complaint  or 
following  legal  proceedings  aimed  at  enforcing  compliance  with  the  any  right  or  obligation 
relating to equal pay for the same work or work of equal value. 

Article 23 – Relationship with Directive 2006/54/EC 

This provision clarifies the relationship with Directive 2006/54/EC in regard to enforcement 
measures. The enforcement measures of this Directive shall apply to proceedings concerning 
any right or obligation related to the principle of equal pay between men and women for equal 
work or work of equal value set out in Article 4 of Directive 2006/54/EC instead of Articles 
17, 18, 19, 24 and 25 of that Directive. 

CHAPTER IV - Horizontal provisions 

Article 24 – Level of protection 

This is a standard provision allowing Member States to provide a higher level of protection 
than that guaranteed by the Directive. It also precludes Member States in reducing the level of 
protection in regard to the matter of equal pay between men and women for the same work or 
work of equal value.  

Article 25 – Equality bodies 

National  equality  bodies  play  a  crucial  role  in  enforcing  anti-discrimination  and  equality 
legislation in the European Union. The Recast Directive already provides that Member States 
should  designate  a  body  or  bodies  for  the  promotion,  analysis,  monitoring  and  support  of 
equal treatment of all persons without discrimination on grounds of sex, including in regard to 
pay. This provision establishes that national equality bodies should equally be competent with 
regard to matters falling within the scope of this Directive. It further requires Member States 
to  take  active  measures  to  ensure  close  cooperation  and  coordination  between  the  national 
equality bodies and labour inspectorates and to ensure that equality bodies are duly resourced 
to  carry  out  their  functions  in  regard  to  the  respect  for  the  right  to  equal  pay.  In  doing  so, 
Member States should consider allocating amounts recovered as fines pursuant to Article 20 
to the equality bodies for that purpose.   

Article 26 – Monitoring and awareness-raising 

In order to ensure proper monitoring of the implementation of the right to equal pay between 
men and women for the same work or work of equal  value, Member States should set  up a 

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dedicated  monitoring  body.  This  body,  which  may  be  part  of  an  existing  body  pursuing 
similar  objectives,  should  have  specific  tasks  in  relation  to  the  implementation  of  the  pay 
transparency  measures  foreseen  in  this  Directive  and  gather  certain  data  to  monitor  pay 
inequalities  and  the  impact  of  the  pay  transparency  measures.  Member  States  will  have  to 
make the necessary arrangements for the proper functioning of such body. 

The  main  functions  of  the  monitoring  body  should  be  to  aggregate  the  data  and  reports 
produced  pursuant  to  the  pay  transparency  measures  foreseen  in  this  Directive  and,  where 
relevant, ensure their publication in a user-friendly manner. It should also tackle causes of the 
pay  gap  between  female  and  male  workers  and  provide  tools  to  analyse  and  asses  pay 
inequalities. Moreover, it should be in charge of providing the Commission with annual data 
on the number and types of pay discrimination cases brought before the courts and complaints 
brought  before  the  competent  public  authorities,  including  equality  bodies.  Finally,  its  task 
should be to raise awareness among public and private undertakings and organisations, social 
partners and the general public to promote the principle of equal pay for equal work or work 
of equal value and pay transparency. 

Article 27 – Collective bargaining and action 

This Directive acknowledges the diversity of labour market models across the EU, including 
the  role  of  social  partners  in  different  Member  States  with  regard  to  matters  related  to  the 
subject matter of this Directive. This provision therefore reaffirms that the Directive does not 
affect  in  any  way  the  right  of  social  partners  to  negotiate,  conclude  and  enforce  collective 
agreements, as well as to take collective action.  

Article 28 – Statistics 

Council  Regulation  (EC)  No  530/199939  requires  Member  States  to  compile  four-yearly 
structural  earnings  statistics  (SES)  at  micro  level  that  provide  harmonized  data  for  the 
calculation  of  the  gender  pay  gap.  In  the  four  yearly  interval  between  two  SES,  Member 
States  transmit,  on  a  voluntary  basis,  annual  gender  pay  gap  data  broken  down  by  gender, 
economic  sector,  working  time  (full-time/part-time),  economic  control  (public/private 
ownership) and age. Even if pay discrimination is only one component of the gender pay gap, 
improving  the  frequency  of  the  available  data  is  needed  to  allow  for  an  annual  monitoring. 
This provision therefore makes the compilation of annual gender pay gap data mandatory to 
ensure a complete set of data every year.  

Article 29 – Dissemination of information 

This provision aims at ensuring awareness-raising in Members States on the rights granted by 
this Directive, as well as other already existing rights in the same field. 

Article 30 – Implementation 

39 
on labour costs (OJ L 63, 12.3.1999, p. 6). 

Council Regulation (EC) No 530/1999 of 9 March 1999 concerning structural statistics on earnings and 

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This article provides that, taking into account the diversity of labour market models across the 
EU and the level of involvement of the social partners in some Member States with regard to 
laying down rules relevant to matters covered by this Directive, Member States may entrust 
the social partners with the implementation of relevant provisions of the Directive, provided 
that the results sought by this Directive are guaranteed at all times. 

Article 31 – Transposition 

This provision establishes the maximum period that Member States have in order to transpose 
the Directive into national law and communicate the relevant texts to the Commission. This 
period is set at two years from entry into force of this directive.  

Article 32 – Reporting and review 

This  provision  establishes  an  obligation  for  Member  States  to  communicate  to  the 
Commission  all  information  concerning  the  application  of  the  Directive  at  the  latest  eight 
years  after  the  entry  into  force,  allowing  the  Commission  to  review  the  application  of  the 
Directive. 

Article 33 – Entry into force   

This is a standard provision stipulating that the Directive is to enter into force on the twentieth 
day following its publication in the Official Journal. 

Article 34 – Addressees  

This is a standard provision on addressees, making clear that the Directive is addressed to the 
Member States. 

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2021/0050 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

to strengthen the application of the principle of equal pay for equal work  
or work of equal value between men and women through  
pay transparency and enforcement mechanisms 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 157(3) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 

Having regard to the opinion of the European Economic and Social Committee40, 

Acting in accordance with the ordinary legislative procedure, 

Whereas:  

(1) 

(2) 

(3) 

(4) 

(5) 

Articles  2  and  3(3)  of  the  Treaty  on  European  Union  enshrine  the  right  to  equality 
between women and men as one of the essential values and tasks of the Union. 

Articles 8 and 10 of the Treaty on the Functioning of the European Union (‘TFEU’) 
provide that the Union shall aim to eliminate inequalities, to promote equality between 
men and women and to combat discrimination based on sex in all its activities. 

Article 157(1) of the TFEU obliges each Member State to ensure that the principle of 
equal  pay  for  male  and  female  workers  for  equal  work  or  work  of  equal  value  is 
applied. 

Article 23 of the Charter of Fundamental Rights of the European Union provides that 
equality between women and men must be ensured in all areas, including employment, 
work and pay. 
The  European  Pillar  of  Social  Rights41,  jointly  proclaimed  by  the  European 
Parliament,  the  Council,  and  the  Commission,  incorporates  among  its  principles 
equality  of  treatment  and  opportunities  between  women  and  men,  and  the  right  to 
equal pay for work of equal value. 

40 
41 
pillar-social-rights/european-pillar-social-rights-20-principles_en 

OJ C ,  p.  
https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-

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(6) 

(7) 

(8) 

(9) 

Directive 2006/54/EC  of the European Parliament  and of the Council42 provides that 
for  the  same  work  or  for  work  of  equal  value,  direct  and  indirect  discrimination  on 
grounds  of  sex  with  regard  to  all  aspects  and  conditions  of  remuneration  is  to  be 
eliminated. In particular, where a job classification system is used for determining pay, 
it should be based on the same criteria for both men and women and should be drawn 
up so as to exclude any discrimination on grounds of sex. 
The  2020  evaluation43  found  that  the  implementation  of  the  equal  pay  principle  is 
hindered  by  a  lack  of  transparency  in  pay  systems,  a  lack  of  legal  certainty  on  the 
concept  of  ‘work  of  equal  value’,  and  by  procedural  obstacles  faced  by  victims  of 
discrimination. Workers lack the necessary information to make a successful equal pay 
claim and in particular information about the pay levels for categories of workers who 
perform  the  same  work  or  work  of  equal  value.  The  report  found  that  increased 
transparency  would  allow  revealing  gender  bias  and  discrimination  in  the  pay 
structures of an undertaking or organisation. It would also enable workers, employers 
and social partners to take appropriate action to enforce the right to equal pay. 

Following  a  thorough  evaluation  of  the  existing  framework  on  equal  pay  for  equal 
work  or  work  of  equal  value44  and  a  wide-ranging  and  inclusive  consultation 
process45,  the  gender  equality  strategy  2020-202546  announced  binding  measures  on 
pay transparency. 

The  gender  pay  gap  is  caused  by  various  factors,  part  of  which  can  be  attributed  to 
direct  and  indirect  gender  pay  discrimination.  A  general  lack  of  transparency  about 
pay  levels  within  organisations  maintains  a  situation  where  gender-based  pay 
discrimination and bias can go undetected or, where suspected, are difficult to prove. 
Binding  measures  are  therefore  needed  to  improve  pay  transparency,  encourage 
organisations to  review their pay structures to  ensure equal  pay  for women and men 
doing the same work or work of equal value, and enable victims of discrimination to 
enforce  their  right  to  equal  pay.  This  needs  to  be  complemented  by  provisions 
clarifying  existing  legal  concepts  (such  as  the  concept  of  ‘pay’  and  ‘work  of  equal 
value’) and measures improving enforcement mechanisms and access to justice.  

(10)  The  application  of  the  principle  of  equal  pay  between  men  and  women  should  be 
enhanced by eliminating direct and indirect pay discrimination. This does not preclude 
employers to pay differently workers doing the same work or work of equal value on 
the  basis  of  objective,  gender-neutral  and  bias-free  criteria  such  as  performance  and 
competence.  

SWD(2020)50.  See  also  the  2013  Report  on  the  implementation  of  Directive  2006/54/EC  to  the 

42 
Directive  2006/54/EC  of  the  European  Parliament  and  of  the  Council  of  5  July  2006  on  the 
implementation  of  the  principle  of  equal  opportunities  and  equal  treatment  of  men  and  women  in  matters  of 
employment and occupation  (OJ L 204, 26.7.2006, p. 23). 
43 
European Parliament and the Council, COM (2013)861 final. 
44 
Evaluation  of  the  relevant  provision  in  Directive  2006/54/EC  implementing  the  Treaty  principle  on 
‘equal  pay  for  equal  work  or  work  of  equal  value’,  SWD(2020)50;  Report  on  the  implementation  of  the  EU 
Action Plan 2017-2019 on tackling the gender pay gap, COM(2020)101. 
45 
46 
March 2020, COM(2020)152 final. 

https://ec.europa.eu/info/law/better-regulation/initiatives/ares-2020-33490_en 
Communication from the Commission ‘A Union of Equality: Gender Equality Strategy 2020-2025’ of 5 

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(11)  This  Directive  should  apply  to  all  workers,  including  part-time  workers,  fixed-term 
contract  workers  or  persons  with  a  contract  of  employment  or  employment 
relationship  with  a  temporary  agency,  who  have  an  employment  contract  or 
employment relationship as defined by the law, collective agreements and/or practice 
in force in each Member State, taking into account the case-law of the Court of Justice 
of the European Union (‘the Court’). In its case law, the Court established criteria for 
determining the status of a worker47. Provided that they fulfil those criteria, domestic 
workers,  on-demand  workers,  intermittent  workers,  voucher  based-workers,  platform 
workers,  trainees  and  apprentices  should  fall  within  the  scope  of  this  Directive.  The 
determination of the existence of an employment relationship should be guided by the 
facts relating to the actual performance of the work and not by the parties’ description 
of the relationship. 

(12) 

In order to remove obstacles for victims of gender pay discrimination to enforce their 
right  to  equal  pay  and  guide  employers  in  ensuring  respect  of  this  right,  the  core 
concepts  related  to  equal  pay,  such  as  ‘pay’  and  ‘work  of  equal  value’,  should  be 
clarified in line with the case law of the Court. This should facilitate the application of 
these concepts, especially for small and medium-sized enterprises.  

(13)  The principle of equal pay for equal work or work of equal value for women and men 
should  be  respected  with  regard  to  wage  or  salary  and  any  other  consideration, 
whether in cash or in kind, which the workers receive directly or indirectly, in respect 
of their employment from their employer. In line with the case-law of the Court48, the 
concept of ‘pay’ should comprise not only salary, but also additional benefits such as 
bonuses,  overtime  compensation,  travel  facilities  (including  cars  provided  by  the 
employer and travel cards), housing allowances, compensation for attending training, 
payments in case of dismissal, statutory sick pay, statutory required compensation and 
occupational  pensions.  It  should  include  all  elements  of  remuneration  due  by  law  or 
collective agreement. 

(14)  Article  10  of  the  Treaty  on  the  Functioning  of  the  European  Union  provides  that,  in 
defining  and  implementing  its  policies  and  activities,  the  Union  shall  aim  to  combat 
discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or 
sexual  orientation.  Article  4  of  Directive  2006/54/EC  provides  that  there shall  be  no 
direct or indirect discrimination on grounds of sex, notably in relation to pay. Gender-
based  pay  discrimination  where  a  victim’s  sex  plays  a  crucial  role  can  take  many 
different  forms  in  practice.  It  may  involve  an  intersection  of  various  axes  of 

47 
Case  C-66/85,  Deborah  Lawrie-Blum  v  Land  Baden-Württemberg,  ECLI:EU:C:1986:284;  Case  C-
428/09,  Union Syndicale Solidaires Isère v Premier ministre and Others, ECLI:EU:C:2010:612; Case C-229/14, 
Ender  Balkaya  v  Kiesel  Abbruch- und  Recycling  Technik GmbH,  ECLI:EU:C:2015:455;  Case  C-413/13,  FNV   
Kunsten Informatie en Media v Staat der Nederlanden, ECLI:EU:C:2014:2411; Case C-216/15, Betriebsrat der 
Ruhrlandklinik gGmbH  v  Ruhrlandklinik  gGmbH,  ECLI:EU:C:2016:883;  Case  C-658/18,  UX  v  Governo  della 
Repubblica italiana, ECLI:EU:C:2020:572. 
48 
For  example,  Case  C-58/81,  Commission  of  the  European  Communities  v  Grand  Duchy  of 
Luxembourg,  ECLI:EU:C:1982:215;  Case  C-171/88  Rinner-Kulhn  v  FWW  Spezial-Gebaudereinigung  GmbH,  
ECLI:EU:C:1989:328;  Case  C-147/02  Alabaster  v  Woolwhich  plc  and  Secretary  of  State  for  Social  Security, 
ECLI:EU:C:2004:192;  Case  C-342/93  -  Gillespie  and  Others  ECLI:EU:C:1996:46;  Case  C-278/93  Freers  and 
Speckmann  v  Deutsche  Bundepost,  ECLI:EU:C:1996:83;  Case  C-12/81,  Eileen  Garland  v  British  Rail  
Engineering  Limited,  ECLI:EU:C:1982:44;  Case  C-360/90,  Arbeiterwohlfahrt  der  Stadt  Berlin  e.V.  v  Monika 
Bötel,  ECLI:EU:C:1992:246;  Case  C-33/89,  Maria  Kowalska  v  Freie  und  Hansestadt  Hamburg,  ECLI: 
EU:C:1990:265. 

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discrimination  or  inequality  where  the  worker  is  a  member  of  one  or  several  groups 
protected  against  discrimination  on  the  basis  of  sex,  on  the  one  hand,  and  racial  or 
ethnic origin, religion or belief, disability, age or sexual orientation (as protected under 
Directive  2000/43/EC  or  Directive  2000/78/EC),  on  the  other  hand.  Migrant  women 
are  among  groups  who  face  such  multiple  forms  of  discrimination.  This  directive 
should therefore clarify that, in the context of gender-based pay discrimination, such a 
combination should be taken into account, thus removing any doubt that may exist in 
this regard under the existing legal  framework. This  should ensure that the courts or 
other competent authorities take due account of any situation of disadvantage arising 
from  intersectional  discrimination,  in  particular  for  substantive  and  procedural 
purposes,  including  to  recognise  the  existence  of  discrimination,  to  decide  on  the 
appropriate  comparator,  to  assess  the  proportionality,  and  to  determine,  where 
relevant, the level of compensation awarded or penalties imposed.  

In  order  to  respect  the  right  to  equal  pay  between  men  and  women,  employers  must 
have pay setting mechanisms or pay structures in place ensuring that there are no pay 
differences between male and female workers doing the same work or work of equal 
value that are not justified by objective and gender-neutral factors. Such pay structures 
should  allow  for  the  comparison  of  the  value  of  different  jobs  within  the  same 
organisational  structure.  In  line  with  the  case  law  of  the  Court,  the  value  of  work 
should  be  assessed  and  compared  based  on  objective  criteria,  such  as  educational, 
professional  and  training  requirements,  skills,  effort  and  responsibility,  work 
undertaken and the nature of the tasks involved.49   

(15) 

(16)  The  identification  of  a  valid  comparator  is  an  important  parameter  in  determining 
whether  work  may  be  considered  of  equal  value.  It  enables  the  worker  to  show  that 
they  were  treated  less  favourably  than  the  comparator  of  a  different  sex  performing 
equal work or work of equal value. In situations where no real-life comparator exists, 
the  use  of  a  hypothetical  comparator  should  be  allowed,  allowing  a  worker  to  show 
that  they  have  not  been  treated  in  the  same  way  as  a  hypothetical  comparator  of 
another  sex  would  have  been  treated.  This  would  lift  an  important  obstacle  for 
potential victims of gender pay discrimination, especially in highly gender-segregated 
employment markets where a requirement of finding a comparator of the opposite sex 
makes it almost impossible to bring an equal pay claim.  In addition, workers should 
not be prevented from using other facts from which an alleged discrimination can be 
presumed, such as statistics or other available information. This would allow gender-
based  pay  inequalities  to  be  more  effectively  addressed  in  gender-segregated  sectors 
and professions.  

(17)  The Court has clarified50 that in order to compare whether workers are in a comparable 
situation,  the  comparison  is  not  necessarily  limited  to  situations  in  which  men  and 
women work for the same employer. Workers may be in a comparable situation even 
when  they  do  not  work  for  the  same  employer  whenever  the  pay  conditions  can  be 
attributed  to  a  single  source  setting  up  those  conditions.  This  may  be  the  case  when 

49 
For  example,  Case  C-400/93,  Royal  Copenhagen,  ECLI:EU:C:1995:155;  Case  C-309/97, 
Angestelltenbetriebsrat  der  Wiener  Gebietskrankenkasse,  ECLI:EU:C:1999:241;  Case  C-381/99,  Brunnhofer, 
ECLI:EU:C:2001:358;  Case  C-427/11,  Margaret  Kenny  and  Others  v  Minister  for  Justice,  Equality  and  Law 
Reform and Others [2013] ECLI:EU:C:2013:122, paragraph 28.  
50 

Case C-320/00 Lawrence, ECLI:EU:C:2002:498. 

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pay  conditions  are  regulated  by  statutory  provisions  or  collective  labour  agreements 
relating to pay applicable to several companies, or when such conditions are laid down 
centrally  for  more  than  one  organisation  or  business  within  a  holding  company  or 
conglomerate.  Furthermore,  the  Court  clarified  that  the  comparison  is  not  limited  to 
workers employed at the same time as the claimant.51  

(18)  Member States should develop specific tools and methodologies to support and guide 
the  assessment  of  what  constitutes  work  of  equal  value.  This  should  facilitate  the 
application of this concept, especially for small and medium-sized enterprises. 

(19) 

Job classification and evaluation systems may, if not used in a gender-neutral manner, 
in  particular when they  assume traditional gender stereotypes,  result in  gender-based 
pay  discrimination.  In  such  case,  they  contribute  to  and  perpetuate  the  pay  gap  by 
evaluating male and female dominated jobs differently in situations where the worth of 
the  work  performed  is  of  equal  value.  Where  gender-neutral  job  evaluation  and 
classification  systems  are  used,  however,  they  are  effective  in  establishing  a 
transparent  pay  system  and  are  instrumental  to  ensure  that  direct  or  indirect 
discrimination on grounds of sex is excluded. They detect indirect pay discrimination 
related  to  the  undervaluation  of  jobs  typically  done  by  women.  They  do  so  by 
measuring  and  comparing  jobs  whose  content  is  different  but  of  equal  value  and  so 
support the principle of work of equal value.  

(20)  The  lack  of  information  on  the  envisaged  pay  range  of  a  job  position  creates  an 
information  asymmetry  which  limits  the  bargaining  power  of  applicants.  Ensuring 
transparency should  enable prospective workers  to  make an informed decision about 
the expected salary without limiting in any way the employer’s or worker’s bargaining 
power to negotiate a salary even outside the indicated range. It would also ensure an 
explicit  and  non-gender  biased  basis  for  pay  setting  and  would  disrupt  the 
undervaluation  of pay compared to  skills  and experience. This  transparency measure 
would  also  address  intersectional  discrimination  where  non-transparent  pay  settings 
allow for discriminatory practices on several discrimination grounds. The information 
to  be  provided  to  applicants  prior  to  employment,  if  not  published  in  a  job  vacancy 
notice, could be provided to the applicant prior to the job interview by the employer or 
in a different manner, for instance by the social partners.  

(21) 

In  order  to  disrupt  the  perpetuation  of  a  pay  gap  between  female  and  male  workers 
affecting  individual  workers  over  time,  employers  should  not  be  allowed  to  enquire 
about the prior pay history of the applicant for a job.  

(22)  Pay transparency measures should protect workers’ right to equal pay while limiting as 
much  as  possible  costs  and  burden  for  employers,  paying  specific  attention  to  micro 
and  small  enterprises.  Where  appropriate,  measures  should  be  tailored  to  the  size  of 
employers taking into account employers’ headcount.  

(23)  Employers  should  make  accessible  to  workers  a  description  of  the  criteria  used  to 
determine pay levels and career progression. The employer should have flexibility in 
the  way  it  complies  with  this  obligation  taking  into  account  the  size  of  the 
organisation.  

51 

Case 129/79 Macarthys, ECLI:EU:C:1980:103. 

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(24)  All  workers  should  have  the  right  to  obtain  information,  upon  their  request,  on  their 
pay and on the pay level, broken down by sex, for the category of workers doing the 
same work or work of equal value. Employers must inform workers of this right on an 
annual  basis.  Employers  may  also,  on  their  own  initiative,  opt  for  providing  such 
information without workers needing to request it. 

(25)  Employers with at least 250 workers should regularly report on pay, in a suitable and 
transparent  manner,  such  as  including  the  information  in  their  management  report. 
Companies  subject  to  the  requirements  of  Directive  2013/34/EU  of  the  European 
Parliament  and  of  the  Council52  may  also  choose  to  report  on  pay  alongside  other 
worker-related matters in their management report.  

(26)  Pay reporting should allow employers to evaluate and monitor their pay structures and 
policies, allowing them to proactively comply with the principle of equal pay. At the 
same  time,  the  gender-disaggregated  data  should  assist  competent  public  authorities, 
workers’ representatives and other stakeholders to monitor the gender pay gap across 
sectors  (horizontal  segregation)  and  functions  (vertical  segregation).  Employers  may 
wish to accompany the published data by an explanation of any gender pay differences 
or gaps. In cases where differences in average pay for the same work or work of equal 
value between female and male workers cannot be justified by objective and gender-
neutral factors, the employer should take measures to remove the inequalities. 

(27)  To  reduce  the  burden  on  employers,  Member  States  could  decide  to  gather  and 
interlink  the  necessary  data  through  their  national  administrations  allowing  for  a 
computation of the pay gap between female and male workers per employer. Such data 
gathering  may  require  interlinking  data  from  several  public  administrations  (such  as 
tax  inspectorates  and  social  security  offices)  and  would  be  possible  if  administrative 
data  matching  employers’  (company/organisational  level)  to  workers’  (individual 
level) data, including benefits in cash and in-kind, are available. Member States could 
decide  to  gather  this  information  not  only  for  those  employers  covered  by  the  pay 
reporting obligation under this Directive, but  also with  regard to  small and medium-
sized  enterprises.  The  publication  of  the  required  information  by  Member  States 
should  replace  the  obligation  of  pay  reporting  on  those  employers  covered  by  the 
administrative  data  provided  that  the  result  intended  by  the  reporting  obligation  is 
achieved.  

(28) 

In order to make the information on the pay gap between female and male workers at 
organisational  level  widely  available,  Member  States  should  entrust  the  monitoring 
body  designated  pursuant  to  this  Directive  to  aggregate  the  data  on  the  pay  gap 
received  from  employers  without  putting  additional  burden  on  the  latter.  The 
monitoring  body  should  make  these  data  public,  allowing  to  compare  the  data  of 
individual employers, sectors and regions of the Member State concerned.  

(29) 

Joint  pay  assessments  should  trigger  the  review  and  revision  of  pay  structures  in 
organisations  with  at  least  250  workers  that  show  pay  inequalities.  The  joint  pay 
assessment  should  be  carried  out  by  employers  in  cooperation  with  workers’ 
representatives;  if  workers’  representatives  are  absent,  they  should  be  designated  for 

52 
Directive  2013/34/EU,  as  amended  by  Directive  2014/95/EU  of  the  European  Parliament  and  of  the 
Council  of  22  October  2014  as  regards  disclosure  of  non-financial  and  diversity  information  by  certain  large 
undertakings and groups (OJ L 330, 15.11.2014, p. 1). 

EN 

26 

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this  purpose.  Joint  pay  assessments  should  lead  to  the  elimination  of  gender 
discrimination in pay.  

(30)  Any processing or publication of information under this Directive should comply with 
Regulation (EU) 2016/679 of the European Parliament and of the Council53. Specific 
safeguards should be added to prevent the direct or indirect disclosure of information 
of an identifiable co-worker. On the other hand, workers should not be prevented from 
voluntarily disclosing their pay for the purpose of enforcing the principle of equal pay 
between men and women for equal work or work to which equal value is attributed. 

(31) 

It  is  important  that  social  partners  discuss  and  give  particular  attention  to  matters  of 
equal  pay  in  collective  bargaining.  The  different  features  of  national  social  dialogue 
and collective bargaining systems across the Union and the autonomy and contractual 
freedom of social partners as well as their capacity as representatives of workers and 
employers  should  be  respected.  Therefore,  Member  States,  in  accordance  with  their 
national system and practices, should take appropriate measures, such as programmes 
supporting social partners, practical guidance as well as an active participation of the 
government  in  a  social  dialogue  at  national  level.  Such  measures  should  encourage 
social partners to pay due attention to equal pay matters, including discussions  at the 
appropriate  level  of  collective  bargaining  and  the  development  of  gender-neutral  job 
evaluation and classification systems. 

(32)  Workers  should  have  the  necessary  procedures  at  their  disposal  to  facilitate  the 
exercise of their right to access justice. National legislation making use of conciliation 
or the intervention of an equality body compulsory or subject to incentives or penalties 
should not prevent parties from exercising their right of access to court. 

(33) 

Involving  equality  bodies,  besides  other  stakeholders,  is  instrumental  in  effectively 
applying the principle of equal pay. The powers and mandates of the national equality 
bodies  should  therefore  be  adequate  to  fully  cover  gender  pay  discrimination, 
including  any  pay  transparency  or  any  other  rights  and  obligations  laid  down  in  this 
Directive. In order to overcome the procedural and cost-related obstacles that workers 
who believe to be discriminated against face when they seek to enforce their right to 
equal pay, equality bodies, as well as associations, organisations, bodies and workers’ 
representatives  or  other  legal  entities  with  an  interest  in  ensuring  equality  between 
men  and  women,  should  be  able  to  represent  individuals.  They  should  be  able  to 
decide to assist workers on their behalf or in their support, which would allow workers 
who have suffered discrimination to effectively claim their rights and the principle of 
equal pay to be enforced.  

(34)  Equality bodies and workers’  representatives should also  be able to  represent  one or 
several workers who believe to be discriminated against based on sex in violation of 
the principle of equal pay for the same work or work of equal value. Bringing claims 
on  behalf  of  or  supporting  several  workers  is  a  way  to  facilitate  proceedings  that 
would not have been brought otherwise because of procedural and financial barriers or 
a  fear  of  victimisation  and  also  when  workers  are  facing  discrimination  on  multiple 
grounds which can be difficult to disentangle. Collective claims have the potential to 

53 
Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27  April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of such 
data, and repealing Directive 95/46/EC (General Data Protection Regulation) OJ L 119, 4.5.2016, p. 1. 

EN 

27 

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uncover systemic discrimination and create visibility of equal pay and gender equality 
in society as a whole. The possibility of collective redress would motivate pro-active 
compliance  with  pay  transparency  measures,  creating  peer  pressure  and  increasing 
employers’ awareness and willingness to act preventively.  

(35)  Member States should ensure the allocation of sufficient resources to equality bodies 
for the effective and adequate performance of their tasks related to pay discrimination 
based  on  sex.  Where  the  tasks  are  allocated  to  more  than  one  body,  Member  States 
should ensure that they are adequately coordinated.  

(36)  Compensation should cover in full the loss and damage sustained as a result of gender 
pay discrimination54.  It should include full recovery of back pay and related bonuses 
or payments in kind, compensation for lost opportunities and moral prejudice. No prior 
fixed upper limit for such compensation should be allowed.  

(37) 

In  addition  to  compensation,  other  remedies  should  be  provided.  Courts  should,  for 
instance, be able to require an employer to take structural or organisational measures 
to  comply  with  its  obligations  regarding  equal  pay.  Such  measures  may  include,  for 
instance, an obligation to review the pay setting mechanism based on a gender-neutral 
evaluation  and  classification;  to  set  up  an  action  plan  to  eliminate  the  discrepancies 
discovered and to reduce any unjustified gaps in pay; to provide information and raise 
workers’ awareness about their right to equal pay; to establish a mandatory training for 
human  resources  staff  on  equal  pay  and  gender-neutral  job  evaluation  and 
classification.  

(38)  Following the case law of the Court55, Directive 2006/54/EC established provisions to 
ensure that the burden of proof shifts to the defendant when there is a prima facie case 
of  discrimination.  Member  States  should  not  be  prevented  from  introducing,  at  any 
appropriate stage of the proceedings, rules of evidence which are more favourable to 
workers making a claim. In any legal or administrative proceedings concerning direct 
or  indirect  discrimination,  in  case  the  employer  did  not  comply  with  the  pay 
transparency  obligations  set  out  by  the  Directive,  the  burden  of  proof  should  be 
automatically  shifted  to  the  defendant,  irrespective  of  the  worker  showing  a  prima 
facie case of pay discrimination. 

(39)  Although it is necessary only to establish a presumption of discrimination before the 
burden of proof shifts to the employer, it is not always easy for victims and courts to 
know  how  to  establish  even  that  presumption.  Pay  transparency  measures  have  the 
potential to support the use of the reversal of the burden of proof, by helping workers 
determine  the  average  pay  levels  for  women  and  men  performing  the  same  work  or 
work of equal value. Enabling workers to provide prima facie evidence which allows 
discrimination to be presumed would swiftly trigger the reverse burden of proof to the 
benefit of the worker. 

(40) 

In  accordance  with  the  case-law  of  the  Court,  national  rules  on  time  limits  for  the 
enforcement of rights under this Directive should be such that they cannot be regarded 
as  capable  of  rendering  virtually  impossible  or  excessively  difficult  the  exercise  of 

Case  C-407/14,  María  Auxiliadora  Arjona  Camacho  v  Securitas  Seguridad  España  SA, 

54 
ECLI:EU:C:2015:831, para. 45. 
55 
Arbejdsgiverforening, acting on behalf of Danfoss, ECLI:EU:C:1989:383. 

Case  C-109/88,  Handels- 

og  Kontorfunktionærernes  Forbund 

I  Danmark 

v  Dansk 

EN 

28 

  EN 

                                                 
 
those  rights.  Limitation  periods  create  specific  obstacles  for  victims  of  gender  pay 
discrimination. For that purpose, common minimum standards should be established. 
Those  standards  should  determine  when  the  limitation  period  begins  to  run,  the 
duration thereof and the circumstances under which it is interrupted or suspended and 
provide that the limitation period for bringing claims is at least three years.  

(41)  Litigation costs create a serious disincentive for victims of gender pay discrimination 
to claim their right to equal pay, leading to insufficient protection and enforcement of 
the  right  to  equal  pay.  In  order  to  remove  this  strong  procedural  obstacle  to  justice, 
successful  claimants  should  be  allowed  to  recover  their  procedural  costs  from  the 
defendant. On the other hand, claimants should not be liable for successful defendant’s 
proceedings costs unless the claim was brought in bad faith, was clearly frivolous or if 
the non-recovery by the defendant would be considered unreasonable by the courts or 
other competent authorities under the specific circumstances of the case, for instance 
having regard to the financial situation of micro-enterprises. 

(42)  Member States should provide for effective, proportionate and dissuasive penalties in 
the event of infringements of national provisions adopted pursuant to this Directive or 
national  provisions  that  are  already  in  force  on  the  date  of  entry  into  force  of  this 
Directive  and  that  relate  to  the  right  to  equal  pay  between  men  and  women  for  the 
same work or work of equal value. Such penalties should include fines, which should 
be  set  at  a  minimum  level  having  due  regard  to  the  gravity  and  duration  of  the 
infringement, to any possible intent to discriminate or serious negligence, and to any 
other aggravating or mitigating factors that may apply in the circumstances of the case, 
for instance, where pay  discrimination  based on  sex intersects  with  other grounds of 
discrimination. Member States should consider allocating amounts recovered as fines 
to  the  equality  bodies  for  the  purpose  of  effectively  carrying  out  their  functions  in 
regard  to  the  enforcement  of  the  right  to  equal  pay,  including  to  bring  pay 
discrimination claims or assist and support victims in bringing such claims.  

(43)  Member  States  should  establish  specific  penalties  for  repeated  infringements  of  any 
right or obligation relating to equal pay between men and women for the same work or 
work  of  equal  value,  to  reflect  the  severity  of  the  act  and  further  deter  such 
infringements.  Such  penalties  may  include  different  types  of  financial  disincentives 
such as the revocation of public benefits or the exclusion, for a certain period of time, 
from any further award of financial inducements or from any public tender procedure. 

(44)  Obligations  on  employers  stemming  from  this  Directive  are  part  of  the  applicable 
obligations  in  the  fields  of  environmental,  social  and  labour  law  whose  compliance 
Member  States  have  to  ensure  under  Directive  2014/23/EU  of  the  European 
Parliament  and  of  the  Council56,  Directive  2014/24/EU  of  the  European  Parliament 
and  of  the  Council57,  Directive  2014/25/EU  of  the  European  Parliament  and  of  the 
Council58  in  regard  to  participation  in    public  procurement  procedures.  In  order  to 

Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award 

Directive  2014/24/EU of  the  European  Parliament  and  of  the  Council  of  26  February  2014 on  public 

56 
of concession contracts, OJ L 94, 28.3.2014, p. 1. 
57 
procurement and repealing Directive 2004/18/EC, OJ L 94, 28.3.2014, p. 65. 
58 
Directive  2014/25/EU  of  the  European  Parliament  and  of  the  Council  of  26  February  2014  on 
procurement  by  entities  operating  in  the  water,  energy,  transport  and  postal  services  sectors  and  repealing 
Directive 2004/17/EC, OJ L 94, 28.3.2014, p. 243. 

EN 

29 

  EN 

                                                 
 
comply with  these obligations  as far as the  right to  equal  pay is  concerned, Member 
States  should  in  particular  ensure  that  economic  operators,  in  the  performance  of  a 
public contract or concession, have pay setting mechanisms that do not lead to a pay 
gap  between  female  and  male  workers  that  cannot  be  justified  by  gender-neutral 
factors in any category of workers carrying out equal work or work of equal value. In 
addition,  Member  States  should  consider  for  contracting  authorities  to  introduce,  as 
appropriate,  penalties  and  termination  conditions  ensuring  compliance  with  the 
principle  of  equal  pay  in  the  performance  of  public  contracts  and  concessions.  They 
may  also  take  into  account  non-compliance  with  the  principle  of  equal  pay  by  the 
bidder  or  one  of  his  subcontractors  when  considering  the  application  of  exclusion 
grounds  or  a  decision  not  to  award  a  contract  to  the  tenderer  submitting  the  most 
economically advantageous tender.  

(45)  The effective implementation of the right to equal pay requires adequate judicial and 
administrative protection against any adverse treatment as a reaction to an attempt to 
exercise  workers’  rights  relating  to  equal  pay  between  men  and  women,  to  any 
complaint  to  the  employer  or  to  any  legal  or  administrative  proceedings  aimed  at 
enforcing compliance with the right to equal pay.   

(46) 

In order to improve the enforcement of the equal pay principle, this Directive should 
strengthen  the  existing  enforcement  tools  and  procedures  in  regard  to  the  rights  and 
obligations  laid  down  in  this  Directive  and  the  equal  pay  provisions  set  out  in 
Directive 2006/54/EC.    

(47)  This Directive lays down minimum requirements, thus respecting the Member States’ 
prerogative  to  introduce  and  maintain  more  favourable  provisions.  Rights  acquired 
under the existing legal framework should continue to apply, unless more favourable 
provisions  are  introduced  by  this  Directive.  The  implementation  of  this  Directive 
cannot  be  used  to  reduce  existing  rights  set  out  in  existing  Union  or  national  law  in 
this  field,  nor  can  it  constitute  valid  grounds  for  reducing  the  rights  of  workers  in 
regard  to  equal  pay  between  men  and  women  for  the  same  work  or  work  of  equal 
value.  

(48) 

In order to ensure proper monitoring of the implementation of the right to equal pay 
between men and women for the same work or work of equal  value, Member States 
should set up or designate a dedicated monitoring body. This body, which may be part 
of an existing body pursuing similar objectives, should have specific tasks in relation 
to the implementation of the pay transparency measures foreseen in this Directive and 
gather certain data to monitor pay inequalities and the impact of the pay transparency 
measures.  

(49)  Compiling  wage  statistics  broken  down  by  gender  and  providing  the  Commission 
(Eurostat)  with  accurate  and  complete  statistics  is  essential  for  analysing  and 
monitoring changes in the gender pay gap at Union level. Council Regulation (EC) No 
530/199959 requires Member States to compile four-yearly structural earnings statistics 
at micro level that provide harmonized data for the calculation of the gender pay gap. 
Annual high-quality statistics could increase transparency and enhance monitoring and 
awareness of gender pay inequality. The availability and comparability of such data is 

59 
on labour costs (OJ L 63, 12.3.1999, p. 6). 

Council Regulation (EC) No 530/1999 of 9 March 1999 concerning structural statistics on earnings and 

EN 

30 

  EN 

                                                 
 
instrumental  for  assessing  developments  both  at  national  level  and  throughout  the 
Union.  

(50)  This Directive aims at a better and more effective implementation of the principle of 
equal pay for equal work or work to which equal value is attributed between men and 
women  through  the  establishment  of  common  minimum  requirements  which  should 
apply  to  all  undertakings  and  organisations  across  the  European  Union.  Since  this 
objective cannot be sufficiently achieved by the Member States and should therefore 
be  achieved  at  Union  level,  the  Union  may  adopt  measures,  in  accordance  with  the 
principle  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In 
accordance  with  the  principle  of  proportionality  as  set  out  in  that  Article,  this 
Directive, which limits itself to setting minimum standards, does not go beyond what 
is necessary in order to achieve that objective. 

(51)  The role of social partners is of key importance in designing the way pay transparency 
measures are implemented in Member States, especially in those with high collective 
bargaining  coverage.  Member  States  should  therefore  have  the  possibility  to  entrust 
the  social  partners  with  the  implementation  of  all  or  part  of  this  Directive,  provided 
that they take all the necessary steps to ensure that the results sought by this Directive 
are guaranteed at all times.  

(52) 

In implementing this Directive Member States should avoid imposing administrative, 
financial  and  legal  constraints  in  a  way  which  would  hold  back  the  creation  and 
development  of  micro,  small  and  medium-sized  enterprises.  Member  States  are 
therefore invited to assess the impact of their transposition act, on small and medium-
sized enterprises in order to ensure that they are not disproportionately affected, giving 
specific  attention  to  micro-enterprises,  to  alleviate  the  administrative  burden,  and  to 
publish the results of such assessments. 

(53)  The European Data Protection Supervisor was consulted in accordance with Article 42 

of Regulation (EU) 2018/172560 and delivered an opinion on XX XXXX. 

HAVE ADOPTED THIS DIRECTIVE: 

CHAPTER I 

General provisions  

Article 1  

Subject matter  

This Directive lays down minimum requirements to strengthen the application of the principle 
of  equal  pay  between  men  and  women  for  equal  work  or  work  of  equal  value  enshrined  in 
Article  157  TFEU  and  the  prohibition  of  discrimination  laid  down  in  Article  4  of  Directive 
2006/54/EC, in particular through pay transparency and reinforced enforcement mechanisms.   

Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the 

60 
protection  of  natural  persons  with  regard  to  the  processing  of  personal  data  by  the  Union  institutions,  bodies,   
offices  and  agencies  and  on  the  free  movement  of  such  data,  and  repealing  Regulation  (EC)  No  45/2001  and 
Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39). 

EN 

31 

  EN 

                                                 
 
Article 2  

Scope  

1. 

2. 

This Directive applies to employers in the public and private sectors.  

This  Directive  applies  to  all  workers  who  have  an  employment  contract  or 
employment relationship as defined by law, collective agreements and/or practice in 
force  in  each  Member  State  with  consideration  to    the  case-law  of  the  Court  of 
Justice. 

Article 3  

Definitions 

1. 

For the purposes of this Directive, the following definitions apply: 

(a) 

‘pay’  means  the  ordinary  basic  or  minimum  wage  or  salary  and  any  other 
consideration, whether in cash or in kind which the worker receives directly or 
indirectly  (‘complementary  or  variable  components’),  in  respect  of  his/her 
employment from his/her employer; 

(b) 

‘pay level’ means gross annual pay and the corresponding gross hourly pay; 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

‘pay gap’ means the difference of average pay levels between female and male 
workers of the employer, expressed as percentage of the average pay level of 
male workers; 

‘median  pay  level’  means  the  pay  of  the  worker  that  would  have  half  of  the 
workers earn more and half less than they do;  

‘median pay gap’ means the difference between the median pay level of female 
and median pay level of male workers expressed as percentage of the median 
pay level of male workers; 

‘quartile  pay  band’  means  each  of  four  equal  groups  of  workers  into  which 
they are divided according to their pay levels – from the lowest to the highest;  

‘category  of  workers’  means  workers  performing  the  same  work  or  work  of 
equal value grouped by the workers’ employer based on criteria as laid down in 
Article 4 of this Directive and specified by the employer concerned;  

‘direct  discrimination’  means  the  situation  where  one  person  is  treated  less 
favourably  on  grounds  of  sex  than  another  person  is,  has  been  or  would  be 
treated in a comparable situation; 

‘indirect  discrimination’  means  the  situation  where  an  apparently  neutral 
provision,  criterion  or  practice  would  put  persons  of  one  sex  at  a  particular 
disadvantage  compared  with  persons  of  the  other  sex,  unless  that  provision, 
criterion or practice is objectively justified by a legitimate aim, and the means 
of achieving that aim are appropriate and necessary; 

(j) 

‘equality body’ means the body or bodies designated pursuant to Article 20 of 
Directive 2006/54/EC, for the promotion, analysis, monitoring and support of 
equal treatment of all persons without discrimination on grounds of sex;  

(k) 

‘labour inspectorate’ means the national body or bodies that have an inspection 
function on the labour market in a Member State. 

EN 

32 

  EN 

2. 

For the purposes of this Directive, discrimination includes:  

(a) 

harassment  and  sexual  harassment,  within  the  meaning  of  Article  2(2)  of 
Directive  2006/54/EC,  as  well  as  any  less  favourable  treatment  based  on  a 
person's rejection of or submission to such conduct, when such harassment or 
treatment relates to or results from the exercise of the rights provided for in this 
Directive; 

(b) 

instruction to discriminate against persons on grounds of sex; 

(c) 

any  less  favourable  treatment  of  a  woman  related  to  pregnancy  or  maternity 
leave within the meaning of Council Directive 92/85/EEC61. 

Pay  discrimination  under  this  Directive  includes  discrimination  based  on  a 
combination  of  sex  and  any  other  ground  or  grounds  of  discrimination  protected 
under Directive 2000/43/EC or Directive 2000/78/EC. 

Article 4  

Equal work and work of equal value 

Member States shall take the necessary measures to ensure that employers have pay 
structures in place ensuring that women and men are paid equally for the same work 
or work of equal value.   

take 

Member  States  shall 
tools  or 
methodologies are established to assess and compare the value of work in line with 
the criteria set out in this Article. These tools or methodologies may include gender-
neutral job evaluation and classification systems. 

the  necessary  measures  ensuring 

that 

The  tools  or  methodologies  shall  allow  assessing,  in  regard  to  the  value  of  work, 
whether  workers  are  in  a  comparable  situation,  on  the  basis  of  objective  criteria 
which shall include educational, professional and training requirements, skills, effort 
and responsibility, work undertaken and the nature of the tasks involved. They shall 
not contain or be based on criteria which are based, whether directly or indirectly, on 
workers’ sex.  

Whenever differences in pay can be attributed to a single source establishing the pay 
conditions, the assessment whether workers are carrying out the same work or work 
of  equal  value  shall  not  be  limited  to  situations in  which  female  and  male  workers 
work  for  the  same  employer  but  may  be  extended  to  that  single  source.  The 
assessment  shall  also  not  be  limited  to  workers  employed  at  the  same  time  as  the 
worker concerned. Where no real comparator can be established, a comparison with 
a hypothetical comparator or the use of other evidence allowing to presume alleged 
discrimination shall be permitted.  

3. 

1. 

2. 

3. 

4. 

61  Council  Directive  92/85/EEC  of  19  October  1992  on  the  introduction  of  measures  to  encourage  
improvements in the safety and health at work of pregnant workers and workers who have recently given birth  
or are breastfeeding (tenth individual Directive  within the  meaning of Article 16 (1) of Directive 89/391/EEC)     
(OJ L 348, 28.11.1992, p. 1). 

EN 

33 

  EN 

                                                 
 
5. 

Where a job evaluation and classification system is used for determining pay, it shall 
be based on the same criteria for both men and women and drawn up so as to exclude 
any discrimination on grounds of sex. 

CHAPTER II 

Pay transparency  

Article 5 

Pay transparency prior to employment 

1. 

2. 

Applicants  for  employment  shall  have  the  right  to  receive  from  the  prospective 
employer  information  about  the  initial  pay  level  or  its  range,  based  on  objective, 
gender-neutral criteria, to be attributed for the position concerned. Such information 
shall  be  indicated  in  a  published  job  vacancy  notice  or  otherwise  provided  to  the 
applicant prior to the job interview without the applicant having to request it.  

An  employer  shall  not,  orally  or  in  writing,  personally  or  through  a  representative, 
ask  applicants  about 
their  previous  employment 
relationships. 

their  pay  history  during 

Transparency of pay setting and career progression policy 

Article 6 

The employer shall make easily accessible to its workers a description of the criteria used to 
determine  pay  levels  and  career  progression  for  workers.  These  criteria  shall  be  gender-
neutral.  

Article 7  

Right to information  

1. 

2. 

3. 

4. 

5. 

Workers shall have the right to receive information on their individual pay level and 
the  average  pay  levels,  broken  down  by  sex,  for  categories  of  workers  doing  the 
same work as them or work of equal value to theirs, in accordance with paragraphs 3 
and 4.  

Employers shall inform all workers, on an annual basis, of their right to receive the 
information referred to in paragraph 1. 

Employers  shall  provide  the  information  referred  to  in  paragraph  1  within  a 
reasonable period of time upon a worker’s request. The information shall be provided 
in accessible formats for workers with disabilities upon their request. 

Workers shall have the possibility to request the information referred to in paragraph 
1 through their representatives or an equality body.  

Workers shall not be prevented from disclosing their pay for the purpose of enforcing 
the principle of equal pay between men and women for equal work or work of equal 
value.  

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6. 

Employers may require that any worker having obtained information pursuant to this 
Article shall not use that information for any other purpose than to defend their right 
to  equal  pay  for  the  same  work  or  work  of  equal  value  and  not  disseminate  the 
information otherwise.  

Reporting on pay gap between female and male workers 

Article 8  

1. 

Employers  with  at  least  250  workers  shall  provide  the  following  information 
concerning their organisation, in accordance with paragraphs 2, 3, and 5: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

the pay gap between all female and male workers; 

the pay gap between all female and male workers in complementary or variable 
components; 

the median pay gap between all female and male workers;   

the median pay gap between all female and male workers in complementary or 
variable components; 

the  proportion  of  female  and  male  workers  receiving  complementary  or 
variable components; 

the proportion of female and male workers in each quartile pay band;  

the pay gap between female and male workers by categories of workers broken 
down by ordinary basic salary and complementary or variable components. 

The accuracy of the information shall be confirmed by the employer’s management. 

The employer shall publish the information referred to in paragraph 1, points (a) to 
(f) on an annual basis in a user-friendly way on its website or shall otherwise make it 
publicly available. The information  from  the previous four  years, if available, shall 
also  be  accessible  upon  request.  In  addition,  the  employer  shall  share  this 
information with the monitoring body referred to in paragraph 6. 

Member States may decide to compile the information set out in paragraph 1, points 
(a)  to  (f)  themselves,  on  the  basis  of  administrative  data  such  as  data  provided  by 
employers  to  the  tax  or  social  security  authorities.  This  information  shall  be  made 
public in accordance with paragraph 6.  

The employer shall provide the information referred to in paragraph 1, point (g) to all 
workers  and  their  representatives,  as  well  as  to  the  monitoring  body  referred  to  in 
paragraph 6. It shall provide it to the labour inspectorate and the equality body upon 
their request. The information from the previous four years, if available, shall also be 
provided upon request. 

Member States shall entrust the monitoring body designated pursuant to Article 26 to 
collect  the  data  received  from  employers  pursuant  to  paragraph  1,  points  (a)  to  (f) 
and  to  ensure  that  this  data  is  public  and  allows  a  comparison  between  employers, 
sectors and regions of the Member State concerned in a user-friendly way.  

Workers  and  their  representatives,  labour  inspectorates  and  equality  bodies  shall 
have the right to ask the employer for additional clarifications and details regarding 
any  of  the  data  provided,  including  explanations  concerning  any  gender  pay 
differences. The employer shall respond to such request within a reasonable time by 

2. 

3. 

4. 

5. 

6. 

7. 

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providing  a  substantiated  reply.  Where  gender  pay  differences  are  not  justified  by 
objective and gender-neutral factors, the employer shall remedy the situation in close 
cooperation  with  the  workers’  representatives,  the  labour  inspectorate  and/or  the 
equality body. 

Article 9  

Joint pay assessment 

1. 

Member States shall take appropriate measures to ensure that employers with at least 
250 workers conduct, in cooperation with their workers’ representatives, a joint pay 
assessment where both of the following conditions are met: 

(a) 

the  pay  reporting  conducted  in  accordance  with  Article  8  demonstrates  a 
difference of average pay level between female and male workers of at least 5 
per cent in any category of workers;  

(b) 

the employer has not justified such difference in average pay level by objective 
and gender-neutral factors.   

2. 

The joint pay assessment shall include the following:  

(a) 

an analysis of the proportion of female and male workers in each category of 
workers; 

(b)  detailed  information  on  average  female  and  male  workers’  pay  levels  and 

complementary or variable components for each category of workers; 

(c) 

(d) 

identification  of  any  differences  in  pay  levels  between  female  and  male 
workers in each category of workers; 

the  reasons  for  such  differences  in  pay  levels  and  objective,  gender-neutral 
justifications, if any, as established jointly by workers’ representatives and the 
employer;  

(e)  measures  to  address  such  differences  if  they  are  not  justified  on  the  basis  of 

objective and gender-neutral criteria; 

(f) 

a report on the effectiveness of any measures mentioned in previous joint pay 
assessments. 

Employers  shall  make  the  joint  pay  assessments  available  to  workers,  workers’ 
representatives, the monitoring body designated pursuant to Article 26, the equality 
body and the labour inspectorate.  

If the joint pay assessment reveals differences in average pay for equal work or work 
of  equal  value  between  female  and  male  workers  which  cannot  be  justified  by 
objective  and  gender-neutral  criteria,  the  employer  shall  remedy  the  situation,  in 
close  cooperation  with  the  workers’  representatives,  labour  inspectorate,  and/or 
equality  body.  Such  action  shall  include  the  establishment  of  gender-neutral  job 
evaluation and classification to ensure that any direct or indirect pay discrimination 
on grounds of sex is excluded. 

3. 

4. 

Article 10 

Data protection 

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1. 

2. 

3. 

To  the  extent  that  any  information  provided  pursuant  to  measures  taken  under 
Articles 7, 8, and 9 involves the processing of personal data, it shall be provided in 
accordance with Regulation (EU) 2016/679.  

Any personal data collected by employers pursuant to Articles 7, 8 or 9, shall not be 
used  for  any  other  purpose  than  to  implement  the  principle  of  equal  pay  for  equal 
work or work of equal value. 

Member  States  may  decide  that,  where  the  disclosure  of  information  pursuant  to 
Articles 7, 8 and 9 would lead to the disclosure, either directly or indirectly, of the 
pay  of  an  identifiable  co-worker,  only  the  workers’  representatives  or  the  equality 
body shall have access to that information. The representatives or equality body shall 
advise  workers  regarding  a  possible  claim  under  this  Directive  without  disclosing 
actual pay levels of individual workers doing the same work or work of equal value. 
The  monitoring  body  referred  to  in  Article  26  shall  have  access  to  the  information 
without restriction. 

Article 11  

Social dialogue  

Without prejudice to the autonomy of social partners and in accordance with national law and 
practice, Member States shall ensure that the rights  and obligations under this Directive  are 
discussed with social partners.  

CHAPTER III 

Remedies and enforcement 

Article 12 

Defence of rights 

Member  States  shall  ensure  that,  after  possible  recourse  to  conciliation,  judicial  procedures 
for  the  enforcement  of  rights  and  obligations  related  to  the  principle  of  equal  pay  between 
men  and  women  for  equal  work  or  work  of  equal  value  are  available  to  all  workers  who 
consider themselves wronged by a failure to apply the principle of equal pay for equal work 
or  work  of  equal  value.  Such  procedures  shall  be  easily  accessible  to  workers  and  to  those 
who  act  on  their  behalf,  even  after  the  labour  relationship  in  which  the  discrimination  is 
alleged to have occurred has ended.  

Article 13 

Procedures on behalf or in support of workers 

1. 

Member  States  shall  ensure  that  associations,  organisations,  equality  bodies  and 
workers’  representatives  or  other  legal  entities  which  have,  in  accordance  with  the 
criteria laid down by national law, a legitimate interest in ensuring equality between 
men and women, may engage in any judicial or administrative procedure to enforce 
any of the rights or obligations related to the principle of equal pay between men and 
women for equal work or work of equal value. They may act on behalf or in support 
of a worker who is victim of an infringement of any right or obligation related to the 

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principle  of  equal  pay  between  men  and  women  for  equal  work  or  work  of  equal 
value, with the latter’s approval. 

2. 

Equality bodies and workers’ representatives shall also have the right to act on behalf 
or in support of several workers, with the latter’s approval. 

Article 14 

Right to compensation 

1. 

2. 

3. 

Member States shall ensure that any worker who has suffered harm as a result of an 
infringement of any right or obligation related to the principle of equal pay between 
men and women for equal work or work of equal value shall have the right to claim 
and  to  obtain  full  compensation  or  reparation,  as  determined  by  the  Member  State, 
for that harm. 

The  compensation  or  reparation  referred  to  in  paragraph  1  shall  ensure  real  and 
effective  compensation  for  the  loss  and  damage  sustained,  in  a  way  which  is 
dissuasive and proportionate to the damage suffered. 

The  compensation  shall  place  the  worker  who  has  suffered  harm  in  the  position  in 
which that person would have been if he or she had not been discriminated based on 
sex  or  if  no  infringement  of  any  of  the  rights  or  obligations  relating  to  equal  pay 
between  men  and  women  for  equal  work  or  work  of  equal  value  had  occurred.  It 
shall  include  full  recovery  of  back  pay  and  related  bonuses  or  payments  in  kind, 
compensation  for  lost  opportunities  and  moral  prejudice.  It  shall  also  include  the 
right to interest on arrears. 

4. 

The compensation or reparation may not be restricted by the fixing of a prior upper 
limit. 

Article 15 

Other remedies 

Member States shall  ensure that, in  legal  proceedings aimed  at  ensuring  the enforcement of 
any right or obligation related to the principle of equal pay between men and women for equal 
work  or  work  of  equal  value,  the  courts  or  other  competent  authorities  may  order,  at  the 
request of the claimant and at the expense of the defendant: 

(a) 

(b) 

an  injunction  order  establishing  an  infringement  of  any  right  or  obligation 
related to the principle of equal pay between men and women for equal work or 
work of equal value and stopping the infringement;  

an injunction order ordering the defendant  to  take structural  or organisational 
measures  to  comply  with  any  right  or  obligation  related  to  the  principle  of 
equal pay between men and women for equal work or work of equal value or to 
stop an infringement thereof. 

Non-compliance with  any of these orders shall, where appropriate, be subject to  a recurring 
penalty payment, with a view to ensuring compliance.  

Article 16 

Shift of burden of proof 

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1. 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

3. 

1. 

2. 

Member States shall take the appropriate measures, in accordance with their national 
judicial  systems,  to  ensure  that,  when  workers  who  consider  themselves  wronged 
because the principle of  equal  pay has not  been  applied to  them, establish before a 
court or other competent authority, facts from which it may be presumed that there 
has been direct or indirect discrimination, it shall be for the defendant to prove that 
there has been no direct or indirect discrimination in relation to pay.  

Member  States  shall  ensure  that,  in  any  legal  or  administrative  proceedings 
concerning  direct  or  indirect  discrimination,  where  an  employer  failed  to  comply 
with any of the rights or obligations related to pay transparency set out in Articles 5 
through 9 of this Directive, it shall be for the employer to prove that there has been 
no such discrimination. 

The claimant shall benefit from any doubt that might remain. 

This  Directive  does  not  prevent  Member  States  from  introducing  evidential  rules 
which are more favourable to the claimant in proceedings instituted to enforce any of 
the  rights  or  obligations  relating  to  equal  pay  between  men  and  women  for  equal 
work or work of equal value. 

Member States need not apply paragraph 1 to proceedings in which it is for the court 
or competent body to investigate the facts of the case. 

This  Article  shall  not  apply  to  criminal  procedures,  unless  otherwise  provided  by 
national law.  

Article 17 

Access to evidence  

Member States shall ensure that in proceedings  concerning a claim  regarding equal 
pay between men and women for equal work or work of equal value, national courts 
or  competent  authorities  are  able  to  order  the  defendant  to  disclose  any  relevant 
evidence which lies in their control. 

Member  States  shall  ensure  that  national  courts  have  the  power  to  order  the 
disclosure  of  evidence  containing  confidential  information  where  they  consider  it 
relevant  to  the  claim.  They  shall  ensure  that,  when  ordering  the  disclosure  of  such 
information,  national  courts  have  at  their  disposal  effective  measures  to  protect 
such information. 

This Article shall not prevent Member States from maintaining or introducing rules 
which are more favourable to claimants. 

Article 18 

Limitation periods 

Member  States  shall  lay  down  rules  applicable  to  limitation  periods  for  bringing 
claims  regarding  equal  pay  between  men  and  women  for  equal  work  or  work  of 
equal value. Those rules shall determine when the limitation period begins to run, the 
duration thereof and the circumstances under which it is interrupted or suspended. 

Limitation periods shall not begin to run before the violation of the principle of equal 
pay  between  men  and  women  for  equal  work  or  for  work  of  equal  value  or 
infringement  of  the  rights  or  obligations  under  this  Directive  has  ceased  and  the 

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claimant  knows,  or  can  reasonably  be  expected  to  know,  about  the  violation  or 
infringement. 

3. 

4. 

Member States shall ensure that the limitation periods for bringing claims are set at 
three years at least. 

Member  States  shall  ensure  that  a  limitation  period  is  suspended  or,  depending  on 
national law, interrupted, as soon as a claimant undertakes action by lodging a claim 
or  bringing  the  claim  to  the  attention  of  the  employer,  workers’  representatives, 
labour inspectorate or equality body.  

Article 19 

Legal and judicial costs 

Claimants who prevail on a pay discrimination claim shall have the right to recover from the 
defendant,  in  addition  to  any  other  damages,  reasonable  legal  and  experts’  fees  and  costs. 
Defendants who prevail on a pay discrimination claim shall not have the right to recover any 
legal  and  experts’  fees  from  the  claimant(s)  and  costs,  unless  the  claim  was  brought  in  bad 
faith, was clearly frivolous or where such non-recovery is considered manifestly unreasonable 
under the specific circumstances of the case.  

Article 20 

Penalties 

1. 

2. 

3. 

4. 

Member States shall  lay down the rules on penalties applicable to  infringements  of 
national  provisions  adopted  pursuant  to  this  Directive  and  shall  take  all  measures 
necessary  to  ensure  that  they  are  implemented.  The  penalties  provided  for  shall  be 
effective,  proportionate  and  dissuasive.  Member  States  shall,  without  delay,  notify 
the  Commission  of  those  rules  and  of  those  measures  and  of  any  subsequent 
amendment affecting them. 

Member States shall ensure that fines are applied to infringements of the rights and 
obligations  relating  to  equal  pay  for  the  same  work  or  work  of  equal  value.  They 
shall set a minimum level for such fines ensuring real deterrent effect. The level of 
the fines shall take into account:  

(a) 

the gravity and duration of the infringement; 

(b) 

any intent or serious negligence on the part of the employer;  

(c) 

any  other  aggravating  or  mitigating  factor  applicable  to  the  circumstances  of 
the case. 

Member  States  shall  establish  specific  penalties  to  be  imposed  in  case  of  repeated 
infringements  of  the  rights  and  obligations  relating  to  equal  pay  between  men  and 
women,  such  as  the  revocation  of  public  benefits  or  the  exclusion,  for  a  certain 
period of time, from any award of financial inducements. 

Member States shall take all measures necessary to ensure that the penalties provided 
for are effectively applied in practice. 

Article 21 

Equal pay matters in public contracts and concessions 

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1.  

The  appropriate  measures  that  the  Member  States  take  in  accordance  with  Article 
30(3)  of  Directive  2014/23/EU,  Article  18(2)  of  Directive  2014/24/EU  and  Article 
36(2)  of  Directive  2014/25/EU,  shall  include  measures  to  ensure  that,  in  the 
performance of public contracts or concessions, economic operators comply with the 
obligations relating to equal pay between men and women for equal work or work of 
equal value.  

2.   Member States shall consider for contracting authorities to introduce, as appropriate, 
penalties and termination conditions ensuring compliance with the principle of equal 
pay  in  the  performance  of  public  contracts  and  concessions.  Where  Member  States’ 
authorities  act  in  accordance  with  Article  38(7)(a)  of  Directive  2014/23/EU,  Article 
57(4)(a)  of  Directive  2014/24/EU,  or  Article  80(1)  of  Directive  2014/25/EU  in 
conjunction with Article 57(4)(a) of Directive 2014/24/EU, they may exclude or may 
be required by Member States to exclude any economic operator from participation in 
a public procurement procedure where they can demonstrate by any appropriate means 
the infringement of the obligations referred to in paragraph 1, related either to a failure 
to comply with pay transparency obligations or a pay gap of more than 5 per cent in 
any  category  of  workers  which  is  not  justified  by  the  employer  on  the  basis  of 
objective,  gender-neutral  criteria.  This  is  without  prejudice  to  any  other  rights  or 
obligations  set  out  in  Directive  2014/23/EU,  Directive  2014/24/EU  or  Directive 
2014/25/EU. 

Victimisation and protection against less favourable treatment 

Article 22 

1. 

2. 

Workers and their representatives shall not be treated less favourably on the ground 
that they have exercised their rights relating to equal pay between men and women. 

Member  States  shall  introduce  in  their  national  legal  systems  such  measures  as 
necessary  to  protect  workers,  including  those  who  are  workers'  representatives  as 
provided  for  by  national  law  and/or  practice,  against  dismissal  or  other  adverse 
treatment by the employer as a reaction to a complaint within the undertaking or to 
any legal proceedings aimed at enforcing compliance with any rights or obligations 
relating to equal pay between men and women. 

Article 23 

Relationship with Directive 2006/54/EC 

Chapter  III  of  this  Directive  shall  apply  to  proceedings  concerning  any  right  or  obligation 
related to the principle of equal pay between men and women for equal work or work of equal 
value set out in Article 4 of Directive 2006/54/EC. 

CHAPTER IV 

Horizontal provisions  

Article 24 

Level of protection 

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1. 

2. 

1. 

2. 

3. 

1. 

2. 

3. 

Member  States  may  introduce  or  maintain  provisions  that  are  more  favourable  to 
workers than those laid down in this Directive. 

Implementation of this Directive shall under no circumstances constitute grounds for 
reducing the level of protection in the fields covered by this Directive. 

Article 25 

Equality bodies 

Without  prejudice  to  the  competence  of  labour  inspectorates  or  other  bodies  that 
enforce the rights of workers, including the social partners, national equality bodies 
established in accordance with Directive 2006/54/EC shall be competent with regard 
to matters falling within the scope of this Directive.  

Member  States  shall  take  active  measures  to  ensure  close  cooperation  and 
coordination between the national equality bodies and other national bodies that have 
an inspection function in the labour market. 

Member States shall  provide equality bodies  with  the adequate  resources necessary 
for effectively carrying out their functions with regard to the respect for the right to 
equal  pay  between  men  and  women  for  the  same  work  or  work  of  equal  value. 
Member  States  shall  consider  allocating  amounts  recovered  as  fines  pursuant  to 
Article 20 to the equality bodies for that purpose. 

Article 26 

Monitoring and awareness-raising  

Member  States  shall  ensure  the  consistent  monitoring  of  the  implementation  of  the 
principle of equal pay between women and men for equal work or for work of equal 
value and the enforcement of all available remedies. 

Each  Member  State  shall  designate  a  body  (‘monitoring  body’)  for  the  monitoring 
and  support  of  the  implementation  of  national  legal  provisions  implementing  this 
Directive  and  shall  make  the  necessary  arrangements  for  the  proper  functioning  of 
such  body.  The  monitoring  body  may  be  part  of  existing  bodies  or  structures  at 
national level.  

Member  States  shall  ensure  that  the  tasks  of  the  monitoring  body  include  the 
following:  

(a) 

(b) 

(c) 

to  raise  awareness  among  public  and  private  undertakings  and  organisations, 
social partners and the general public to promote the principle of equal pay and 
the right to pay transparency;  

to tackle the causes of the gender pay gap and devise tools to help analyse and 
assess pay inequalities; 

to aggregate data received from employers pursuant to Article 8(6), and publish 
this data in a user-friendly manner; 

(d) 

to collect the joint pay assessment reports pursuant to Article 9(3); 

(e) 

to  aggregate  data  on  the  number  and  types  of  pay  discrimination  claims 
brought before the courts and complaints brought before the competent public 
authorities, including equality bodies.  

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4. 

Member States shall provide the Commission with the data referred to in paragraph 
3, points (c), (d), and (e) to the Commission annually. 

Article 27  

Collective bargaining and action 

This  Directive  shall  not  affect  in  any  way  the  right  to  negotiate,  conclude  and  enforce 
collective  agreements  and  to  take  collective  action  in  accordance  with  national  law  or 
practice. 

Article 28 

Statistics  

Member States shall provide the Commission (Eurostat) with up-to-date gender pay gap data 
annually and in a timely manner. These statistics shall be broken down by gender, economic 
sector,  working  time  (full-time/part-time),  economic  control  (public/private  ownership)  and 
age and be calculated on an annual basis.  

Article 29 

Dissemination of information 

Member States shall take active measures to ensure that the provisions they adopt pursuant to 
this  Directive,  together  with  the  relevant  provisions  already  in  force,  are  brought  by  all 
appropriate means to the attention of the persons concerned throughout their territory. 

Article 30 

Implementation  

Member  States  may  entrust  the  social  partners  with  the  implementation  of  this  Directive, 
where  the  social  partners  jointly  request  to  do  so,  provided  that  Member  States  take  all  the 
necessary steps to ensure that the results sought by this Directive are guaranteed at all times.  

Article 31 

Transposition 

1. 

2. 

3. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions necessary to comply with this Directive by [two years after the entry into 
force]. They shall immediately inform the Commission thereof.  

When  informing  the  Commission,  Member  States  shall  also  accompany  it  with  a 
summary of the results of their assessment regarding the impact of their transposition 
act on small and medium-sized enterprises and a reference to where such assessment 
is published. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  shall  be  accompanied  by  such  a  reference  on  the  occasion  of  their 

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official  publication.  The  methods  of  making  such  reference  shall  be  laid  down  by 
shall be laid down by Member States.  

Article 32 

Reporting and review 

1. 

2. 

By [eight years after the entry into force] Member States shall communicate to the 
Commission  all  information  on  how  this  Directive  has  been  applied  and  what  has 
been its impact in practice.  

On  the  basis  of  the  information  provided  by  Member  States,  the  Commission  shall 
submit a report to the European Parliament and the Council on the implementation of 
this Directive and propose, where appropriate, legislative amendments.  

Article 33 

Entry into force 

The  Directive  shall  enter  into  force  on  the  twentieth  day  following  its  publication  in  the 
Official Journal of the European Union. 

Article 34 

Addressees 

This Directive is addressed to the Member States.  

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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