Application of the equal pay principle through pay transparency measures

Briefing 22-07-2021

This briefing provides an initial analysis of the strengths and weaknesses of the impact assessment (IA) accompanying the Commission proposal for a directive aimed at strengthening the application of the principle of equal pay for equal work or work of equal value between men and women, enshrined in Article 119 of the Treaty of Rome. Following two negative opinions of the Regulatory Scrutiny Board and an exceptional third positive one, the IA provides a good problem definition. The IA coherently identifies the problem drivers and makes a compelling case for the consequences should situation remain unchanged. The options retained for assessment seem built around a pre-selected preferred option package. The analysis regarding the impact on SMEs appears to be insufficiently developed while the one on competitiveness is missing. The proposal includes all the measures presented in the IA's preferred package as well as two extra measures which were suggested, but not explicitly included in the preferred package.