Pay Transparency: Will Poland Follow the UK’s Footsteps?

In the UK it is not uncommon to see job advertisements that include remuneration brackets. However, in most countries on this side of the Channel, it has so far been unthinkable. The vast majority of employers do not provide any information on pay ranges during the recruitment process. Additionally, it is quite frequent for employers to forbid their employees to disclose such information, even if the legal basis for doing so is sometimes a little bit shaky (see here, in Polish).

However, this is about to change. In May of 2023, the EU Parliament and the EU Council passed directive 2023/970 on pay transparency that will level the field for employees. The member states have up to June 2026 to transpose it into law. The practical upshot of this directive is that, at the latest in June 2026, candidates across the EU will be informed about compensation brackets for the position they are applying to during the recruitment process. Who knows, maybe we will even see that information directly in the job advertisements? According to a survey conducted in 2023 (here), as much as 89% of employees in Poland would welcome this change.

However, this is not the only issue that the directive is addressing. Its overarching goal is to narrow the gender pay gap. Therefore, it introduces crucial provisions not only impacting recruitment, but also reporting, and transparency in remuneration. From disclosing salary information during recruitment to addressing unjustified pay disparities, employers face multifaceted challenges.

Furthermore, the directive strengthens the role of employee representatives, necessitating proactive engagement with social partners. In essence, its implementation demands strategic planning and proactive dialogue to navigate the evolving landscape of employee relations and HR practices.

Poland being the EU’s largest SSC hosting country and women being traditionally overrepresented in SSCs, the impact on SSCs, including the Payroll function, could be significant.

What to know more about how the directive is going to impact the labour market in Poland? Check out this insightful article in English (here) prepared by Mercer.