The European Parliament has formally adopted the Pay Transparency Directive. The formal adoption of the directive took place last month, and its provisions are likely to enter into force in most EU member states in 2026.

Under the directive EU companies will be required to share information about how much they pay women and men for work of equal value, and to take action if their gender pay gap exceeds 5%.

Prior to the parliament’s formal adoption of the directive, the Irish Congress of Trade Unions (ICTU) had welcomed the suggestion - by the Minister for Equality’s office - that the scope of the European Directive on pay transparency be broadened in Ireland to ensure more employers and their workers are affected by its provisions.

These include a requirement to publish pay ranges for vacant positions, provide details of existing rates for specific roles and actively engage with workers or their representatives to address high gender pay gaps.

Commenting on the formal adoption by the EU parliament, Fórsa general secretary Kevin Callinan said: “The formal approval for the directive by EU ministers is welcome as it does contain a number of important features to make significant improvements to pay equality measures.

“It goes further than the Irish gender pay gap reporting legislation, as it includes protection of trade union rights for women workers, ensuring they can bargain collectively for equal pay.

“It puts more wage bargaining power in the hands of workers when they are negotiating salary with a new employer. It helps tip the scales a little more for workers, which is to be welcomed,” he said.

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