On 30 March 2023, the European Parliament adopted the legislative proposal of the European Commission 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 (the Pay Transparency Directive). After the formal approval of the European Council on 10 May 2023, the Pay Transparency Directive was published in the EU Official Journal and entered into force on 6 June 2023. The Pay Transparency Directive has some important consequences for employers as well as employees, which we have described in more detail below.
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