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EU Targets 12% Gender Pay Gap with Transparency Directive

3/26/2025

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Story summary
  • The EU's Pay Transparency Directive targets the 12% gender pay gap, promoting equal pay for women.
  • Women in SMEs could see annual earnings increase by €465-€700 if transparency is implemented, despite opposition from some business groups.
  • Salary transparency is inconsistent across Europe, with Germany and Italy reporting rates below 20%.
  • In 2024, women earned 83 cents for every dollar men made, indicating persistent pay disparities.
  • Companies are urged to adopt data-driven pay practices to promote fairness and align with their values.