Sweden first country to announce a plan for implementation of the EU Pay Transparency Directive
Summary of the wage transparency directive and its implementation in Sweden
The directive and its purpose: The pay transparency directive, adopted in May 2023, must be implemented by 7 June 2026 at the latest. It aims to strengthen the principle of equal pay for equal work, particularly to counteract pay discrimination between women and men.
Important measures and proposals:
- Salary structures:
- Employers must have pay structures that ensure equal pay for equal or equivalent work. This is achieved in Sweden through annual salary surveys.
- Transparency in pay:
- A new chapter in the Swedish Discrimination Act is proposed to increase transparency. Employers must use information from salary surveys to inform employees about wages.
- Information for job seekers and employees:
- Jobseekers must be informed about the starting salary before salary negotiations. Employers cannot ask about previous wages from other employers.
- Employees must be able to obtain information on wages and average wages for equal and equivalent work, broken down by gender.
- Salary reporting:
- Employers with at least 100 employees must report pay differences annually to the Discrimination Ombudsman (DO), who must publish the information. Sanctions are imposed for failure to report.
- Adjustments in salary mapping:
- Salary surveys must be written for employers with at least ten employees and include comparisons of the salary development between women and men, especially on parental leave.
- Legal procedures:
- The burden of proof may shift to the employer if the transparency obligations are not met. A new limitation period of three years is introduced for wage discrimination cases.
- Sanctions:
- Two new forms of sanction are proposed: sanction fee and compensation. The Discrimination Ombudsman (DO) has expanded tasks, including monitoring and notifying about pay discrimination.
Cooperation:
Employers must cooperate with employee organizations in the work with wage mapping and wage reporting. Failure to inform may result in damages. Through these measures and proposals, the directive aims to increase transparency in wage setting and ensure equal pay for equal work in Sweden.