Directive on Equal Pay for Equal Work or Work of Equal Value

Adopted in April 2023, the Directive aims to combat discrimination and reduce gender-based pay gaps across the European Union by strengthening pay transparency and employers’ accountability. 

AmCham supports the objectives of the Directive, while emphasizing the importance of a balanced and well-considered implementation into Croatian legislation. The document highlights key recommendations from the business community, including:

• Clear definition of the terms “pay” and “employer” with the Directive, taking into account legal and tax implications.
   
• Timely availability of methodologies and tools for job classification, as well as technical and informational support, particularly for employers with fewer than 250 employees.
   
• Specification of additional, objective criteria for assessing the value of work, along with conducting consultations (rather than co-deciding) with workers' representatives.
   
• Avoiding additional reporting and pay transparency requirements beyond those strictly mandated by the Directive, especially for employers with limited administrative capacity.
   
• Clear rules for the protection confidential information, including the possibility for individual worker’s salaries to remain a trade secret with restricted access.
   
• Restriction of limitation periods to the level prescribed by the Directive (three years), without further extension, in order to ensure better legal predictability and security.
   
• Timely publication of all implementing legislation, allowing employers sufficient time to adjust before their application begins.

AmCham will continue its dialogue with relevant institutions to ensure an effective transposition of the Directive that simultaneously guarantees equal treatment of workers and safeguards business competitiveness.

AmCham's position paper is available here.