On Tuesday, Parliament decided by 403 votes in favour, 166 against and 58 abstentions to enter into negotiations with EU governments on a Commission proposal for a Pay Transparency Directive.

MEPs demand EU companies with at least 50 employees (instead of 250 as originally proposed) be required to disclose information that makes it easier for those working for the same employer to compare salaries and expose any existing gender pay gap in their organisation. Tools to assess and compare pay levels should be based on gender-neutral criteria and include gender-neutral job evaluation and classification systems.

If pay reporting shows a gender pay gap of at least 2.5% (versus the 5%proposed by the Commission), member states would need to ensure employers, in cooperation with their workers’ representatives, conduct a joint pay assessment and develop a gender action plan.

MEPs want the Commission to create a dedicated official label to award to employers whose organisations do not have a…