Meeting on the Pay Transparency Directive

A meeting was held at AmCham with Josipa Klišanin, Head of the Labour Sector at the Ministry of Labour, Pension System, Family and Social Policy, focusing on the transposition of Directive (EU) 2023/970 on pay transparency into Croatian legislation. The meeting brought together AmCham member company representatives to openly discuss the regulatory and practical implications of the new Directive, whose deadline for transposition into national law is 7 June 2026.

In her introductory remarks, Ms. Klišanin highlighted that, according to Eurostat data for 2023, the average gender pay gap in the European Union stands at 12%, while in Croatia it amounts to 7.4%, placing Croatia among the Member States with comparatively lower pay disparities between women and men.

Participants agreed that the purpose of the Directive is justified — as reflected in its full title — namely to strengthen the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency and enforcement mechanisms.

During the meeting, discussions covered key issues that will be addressed in the legislative amendments, including the definition of pay (pay supplements, calculation of supplements, other payments, and employment-related benefits), the definition of equal pay, job evaluation and classification systems, criteria for assessing comparable work, as well as employees’ access to criteria for determining and increasing pay. The discussion included tools for measuring pay transparency and the prohibition of contractual clauses on pay confidentiality.

AmCham supports the objectives of the Directive, emphasizing the need for balanced and proportionate implementation into Croatian legislation in order to ensure greater transparency and equality, while avoiding excessive administrative burden, particularly for smaller employers.

The meeting was attended by Dražen Malbašić, AmCham’s Policy Director, as well as member company representatives specializing in labour law.