Pay gaps between men and women – that is, when women earn less than men for doing the same work or work of equal value, or when the set-up of pay structures and career progression disadvantages one gender over another ‒ can arise for a variety of reasons, including direct and indirect discrimination. They can also stem from an undervaluation of work traditionally carried out by women. The Pay Transparency Directive goes some way towards addressing this by requiring companies to ensure that their pay structures are based on objective, gender-neutral job evaluation that supports the implementation of the work of equal value principle. It also encourages the social partners to take pay equity for the same or equivalent jobs into account in collective bargaining. This article reflects on this principle and how social partners can support its implementation.
