“Will I be able to find out my colleagues’ salaries?”

This is probably the first question that comes to mind when discussing pay transparency.

The short answer is no.

Pay transparency does not mean that employers will publish every employee’s salary or that an employee will be able to request a colleague’s payslip.

The change is nevertheless significant. Employees will have access to more important information, that will enable them to understand how their pay is determined and structured, and whether it is fair in comparison with the pay of the employees performing work of equal value.

In other words, employees will not necessarily find out how much a particular colleague earns. They will, however, be able to ask better-informed questions about their own pay.

What information will the employees be able to request?

Under the EU Pay Transparency Directive (Directive (EU) 2023/970), employees will be entitled to request and receive written information regarding their individual pay level, average pay levels for categories of employees performing the same work or work of equal value, average pay levels for women and men within the category of employees comparable to their role, the criteria used to determine pay levels and the criteria used to determine pay progression.

An employee will therefore not be able to simply ask: “How much does X earn?”

Instead, the employee may request information about average pay levels within the relevant comparable category, broken down by sex.

What does “work of equal value” mean?

The comparison is not necessarily limited to colleagues who have the same job title. Two roles may have different titles but still be of comparable value. At the same time, two employees with the same title may have different responsibilities.

The value of work must be assessed using objective criteria, such as the skills required, the level of responsibility, the effort involved and the conditions under which the work is performed.

Therefore, the fact that two employees have the same job title does not automatically mean that they must receive exactly the same pay. However, the employer must be able to explain any difference by reference to objective criteria that are applied consistently.

Pay means more than base salary

When discussing equal pay, the analysis is not limited to base salary. Pay may also include other components received in connection with employment, such as bonuses, allowances, premiums, benefits or other variable elements.

For example, two employees may have the same base salary but different access to bonuses or benefits. A comparison limited to the amount stated in the employment contract may therefore provide an incomplete picture.

What will the employees not be entitled to request?

Pay transparency does not remove the protection afforded to colleagues’ personal data.

Employees will not automatically have the right to receive a list identifying the individual salaries paid within the company, access their colleagues’ employment contracts, learn the exact salary of a particular individual, request information that would directly identify a colleague’s pay or use the information received for purposes unrelated to enforcing the right to equal pay.

In practice, even the disclosure of an average pay level could indirectly reveal an individual’s salary within a very small team. In such cases, the information will need to be managed in a way that protects the employee’s right to information without infringing the rights and personal data of other employees.

What happens if an employee identifies a pay difference?

The existence of a difference does not automatically prove discrimination.

The employer may have objective reasons for the difference, such as relevant experience, additional responsibilities, performance, specialist skills or different working conditions. However, the justification must be genuine, gender-neutral and applied consistently.

The new rules strengthen employees’ ability to request explanations and challenge pay differences they consider unjustified.

Pay Transparency Begins Before Employment

The protection does not apply only to existing employees. Job applicants must receive information about the initial pay level or pay range for a position at a stage that allows for informed and transparent negotiations. Employers must also refrain from asking candidates about their pay history.

This rule has an important purpose: a lower salary received in the past should not follow a person from one employer to another and perpetuate an existing pay disparity.

Conclusion: we will not learn a colleague’s salary. We will learn whether the system is fair

Pay transparency does not turn everyone’s salary into a publicly available spreadsheet.

It gives employees the tools to understand how their pay is determined, which criteria influence pay progression, how their pay is positioned within a comparable category, whether differences exist between women and men and whether those differences are supported by objective reasons.

The relevant question is therefore not simply “Will I find out how much my colleague earns?”. The question the new rules will help employees ask is “Can my employer explain, using objective and verifiable criteria, why we are paid differently?”

That is the real change introduced by pay transparency.

Sorina-Elena Oncescu, Compliance Manager

* At the time of writing, the Romanian framework transposing the Directive is still undergoing the legislative process. The rights and procedures applicable in Romania must therefore be assessed by reference to the final legislation adopted. This article provides general professional commentary and does not constitute legal advice.