The Ministry of Labor is taking the first substantive step toward institutionally enshrining wage transparency and equal pay for men and women in the Greek labor market, with a new draft law approved by the Cabinet and presented yesterday by Minister Niki Kerameus.
This is a significant measure that incorporates EU Directive 2023/970 on pay transparency, but leaves much work to be done both in terms of implementing the new rules and in terms of a comprehensive cultural shift regarding pay and labor relations. In fact, as the data show, the average gender pay gap is 13.4%, compared to 11.1% in the EU, though with significant variations across different sectors.
Thus, in the information and communication sectors, the gap is 25.3%; in financial and insurance services, it is 19%; in real estate activities, it is 18.7%; while in sectors such as construction and energy, it drops to 9.7% and 8.7%, respectively.
At the same time, the ministry estimates that the new framework can also serve as a lever to strengthen Collective Bargaining Agreements, at a time when increasing the coverage of workers under CBAs is also a priority for the labor market.
The bill, titled “Strengthening the Implementation of Equal Pay for Men and Women for the Same Work or Work of Equal Value – Transposition of Directive (EU) 2023/970,” transposes the European directive on pay transparency and introduces, for the first time in Greece, a comprehensive framework of obligations for businesses, both prior to hiring and during the employment relationship.
Under the new regulations, employers will now be required to inform prospective employees of the salary level or range for the position prior to hiring, as well as the relevant collective bargaining agreement, where one exists. At the same time, it is prohibited to request information about the candidate’s previous earnings, and the hiring process must be completely gender-neutral.
Particular importance is attached to linking the new framework to Collective Bargaining Agreements. The draft law provides that when a collective agreement is in effect, it is presumed that there is no unjustified wage discrimination.
At the same time, it is estimated that collective bargaining agreements can serve as a basis for establishing wage structures within companies. This is intended to provide an additional incentive for signing more collective agreements, as the ministry believes that an organized and transparent wage policy reduces inequalities and facilitates oversight.
At the same time, companies will be required to have clear and documented wage structures based on objective and gender-neutral criteria. What does this mean in practice? It means that employees gain the right to access information not only about their own pay level but also about the average wages of men and women performing similar work or work of equal value, without, however, disclosing personal data.
A key element of the bill is the establishment of internal pay gap audits in companies. Companies with more than 250 employees will be required to publish data annually on the gender pay gap, the bonus gap, the median pay gap, and variations by employee category. For smaller companies in specific categories, this requirement will apply every three years.
In fact, if a wage disparity of 5% or more is found without objective justification, the employer will be required to take corrective action and reform its wage policy.
As for the question of why an employee, given their qualifications, experience, consistency, productivity, and efficiency, cannot demand and receive a significantly higher salary, the answer is simple. Of course they can. And obviously, companies—despite the new bureaucratic procedures being introduced, which may initially create some technical challenges— can reward productive and effective employees more generously. Provided, that they can prove that the difference from others is not due to gender discrimination. That is, that someone is paid more for their merit and not because they are, for example, a woman.
At the same time, legal protection for employees is strengthened, as the law provides for the possibility of appealing to the courts, representation by labor unions or equality bodies, and the right to request wage comparison data.
The Ombudsman will play a central role in the process, and this may present another major challenge: whether the institution can be transformed into a modern body that will assume a substantive advisory, supervisory, and enforcement role.
Labor Minister Niki Kerameos described the draft law as another step toward a labor market with greater transparency and equal opportunities, noting that the goal is for pay to be determined exclusively by the work and value of the employee and not by their gender. According to the ministry, 65 proposals from social partners, workers, and employer organizations have already been incorporated into the final draft.