In a decisive step toward promoting pay equity, the Ministry of Labor and Social Security is advancing a new regulatory framework for wage transparency.
The new regulation aims to ensure that employees’ pay is not influenced by their gender, but is determined solely by their skills, qualifications, and performance, in conjunction with the nature and value of the work they perform, thereby enshrining the principle of “equal pay for equal work.”
In this context, the legislative initiative transposes European Directive 2023/970 and comes at a time when the gender pay gap remains a reality.
Speaking to the Athens-Macedonian News Agency (ANA-MPA), Minister of Labor and Social Security Niki Kerameos stated:
“The new bill represents another important step toward strengthening equality in the workplace. With greater transparency in pay and effective monitoring tools, we ensure that every worker’s compensation is determined by their value and contribution, not by their gender. We are continuing reforms that promote equal opportunities for all.”
According to data for 2024, the average pay gap in the European Union stood at 11.1%, meaning that women’s average hourly earnings were 11.1% lower than men’s.
Similarly, in Greece, the rate stands at an even higher level, at 13.4%, highlighting the need for targeted and substantive interventions.
The bill introduces specific transparency rules in two areas—both prior to hiring and during the employment relationship—with the aim of correcting unjustified disparities wherever they are identified.
Specifically, prior to the interview, the employer is required to disclose to the prospective employee the salary amount or the anticipated salary range for the position, as well as to inform them of the relevant Collective Bargaining Agreement, where applicable.
At the same time, it is prohibited to request information regarding the candidate’s previous compensation.
At the same time, the job posting and the recruitment process as a whole must ensure equal treatment, remaining gender-neutral and free from any form of discrimination.
An additional provision that our country has incorporated into the bill, beyond what is required by the European directive, is that, when a Collective Bargaining Agreement (CBA), it is presumed in principle that there is no unjustified wage discrimination during the adjudication of a labor dispute by the Labor Inspectorate.
Furthermore, Collective Labor Agreements can be used as a basis for establishing wage structures within companies.
According to the Ministry of Labor, this simplifies procedures for companies that implement collective bargaining agreements and provides an incentive to sign more such agreements.
At the same time, companies are required to have documented wage structures based on objective, gender-neutral criteria, allow for the comparative evaluation of job positions, and clearly define pay components by employee category.
In the same context of enhancing pay transparency, employees gain the right to access key information regarding their compensation.
Specifically, they may request information regarding their individual pay level and the average pay of men and women performing similar work or work of equal value, without the possibility of identifying individuals.
Furthermore, the bill establishes mandatory internal monitoring of the pay gap within companies, strengthening mechanisms for tracking and recording potential pay disparities between men and women.
The data companies are required to submit
Companies are required to submit data regarding:
- the gender pay gap,
- the pay gap in bonuses,
- the median wage gap, and
- the pay gap by employee category.
This requirement applies annually for companies with more than 250 employees, every three years for companies with 150 to 249 employees, and every three years starting in 2031 for companies with 100 to 149 employees.
The bill also provides for specific procedures to address cases where unjustified pay disparities are identified.
If it is found that a pay gap exists between men and women without being justified by objective criteria, the employer is required to correct it by restructuring the company’s pay structure.
In fact, when the wage gap is equal to or greater than 5% and is not corrected within six months, a wage review process is triggered.
The bill also establishes a strengthened framework of protection for employees who believe they are subject to wage discrimination based on gender, ensuring they can effectively assert their rights.
In the event of a dispute, the employee may seek legal recourse, request access to data regarding pay, and seek support from the Ombudsman or a labor union.
The Labor Inspectorate retains full authority to monitor compliance with the law and impose sanctions, including administrative fines, where violations are found.