Transparency Directive approved

National ministers in EU states have finally approved the EU Pay Transparency Directive, which aims to help close the gender pay gap.

The directive requires companies with more than 250 employees to report annually on the difference in pay between men and women. Companies with only 100 employees are required to report every five years.

And if the gender pay gap is greater than 5%, the employer and employee representatives must produce a joint assessment, setting out ways to close the gap.

In addition, employees will have the right to information on pay broken down by sex. It will become illegal for employers to try to prevent their employees revealing their pay.

Pay information must also be provided when jobs are advertised.

The directive was approved by ministers on 24 April; it had previously been approved by the European Parliament on 30 March.

Member states now have three years to implement it in national legislation.