site.btaEU Pay Transparency Directive to Boost Fairness and Talent Retention, Says Deputy Labour Minister

The EU Pay Transparency Directive will help businesses attract and retain top talent by introducing clear rules and fairness in remuneration, Deputy Labour and Social Policy Minister Nataliya Efremova said at the Next Level HR forum, the Ministry's press centre reported on Thursday.

Efremova noted that the principle of equal pay between women and men is already enshrined in both European and Bulgarian legislation, but its effective implementation remains a challenge. Data show that the gender pay gap in Bulgaria exceeds 13% in favour of men, she said.

Among the key changes in the directive is the requirement for employers to indicate a salary range in job advertisements. The practice of asking candidates about their previous pay is also banned. The aim is to prevent the perpetuation of existing inequalities, with particular focus placed on introducing objective and gender-neutral criteria for evaluating work. These will be based on four main elements – skills, effort, responsibilities and working conditions.

The directive also guarantees employees’ right to information. They will be able to obtain data on average pay levels in their category. Where a pay gap of more than 5% is identified and cannot be justified by objective criteria, employers will be required to take measures to address it. A national monitoring body is also envisaged, which will collect and analyze data, track trends and perform a preventive function. Companies with 100 or more employees will be required to report the gender pay gap.

Efremova said that Bulgaria is at an advanced stage of preparations for transposing the directive, with the main provisions to be incorporated into the Protection against Discrimination Act and supplemented by amendments to the Labour Code. The approach aims to avoid placing an unnecessary burden on businesses while ensuring effective implementation of the new rules. “The goal of implementing the directive is not to introduce sanctions, but prevention and achieving fairness. Ultimately, remuneration is the clearest measure of work, and fairness is the criterion for its value,” Efremova stressed.

The implementation of the directive will contribute to a fairer and more competitive labour market, where companies investing in transparency and equality will have an advantage in attracting qualified staff and building sustainable teams, Efremova added.

According to a regional survey by Manpower Bulgaria conducted between October and December 2025, Bulgarian companies continue to rely on increasing pay levels and offering more competitive benefits as their main strategy for retaining employees, but remain cautious about changes related to pay transparency and new EU-level regulations.