Using the Equal Pay Analyzer to successfully counteract the gender pay gap in the long term

Despite policy efforts, the gender pay gap has barely narrowed in the last 10 years - there is still a gap in the pay of women and men in the European Union (EU) of around 13% 1), while in Germany it is as high as 17.6% 2). Against this background, the EU adopted a new directive on 24 April 2023 3) that significantly tightens the legal requirements for companies regarding pay gaps between women and men. The Equal Pay Analyzer from PwC offers your company the perfect solution to react comprehensively, flexibly, and quickly to the modified legal requirements and to proactively shape the future.

The new EU Directive and the Transparency in Wage Structures Act

In the future, according to the new EU directive to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms 4), companies will be obliged to disclose information that will contribute to a better comparability of salaries and to the detection of pay differentials.

1) Gender pay gap: Parliament adopts new rules on binding pay – transparency measures

2) Eurostate: Gender pay gap statistics

3) Gender pay gap: Council adopts new rules on pay transparency

4) Directive of the European parliament and of the council (currently only publication of the proposal for this directive)

From Petra Raspels, Pia Isabell Pleines-Müller, Carolina Jahn, Jannick Dietz and Sophie Wayra Britsch