Equal pay is not only a matter of women’s expectations in the labor market, but it is also part of the legislative framework of Croatia. It serves as the central focus of the European Union’s Pay Transparency Directive. In addition, equal pay is one of the key phenomena that contributes to the well-being and progress of society as a whole.
However, with the upcoming Pay Transparency Directive, that will change.
Did you know that the Directive was adopted on March 23, 2023, and that EU member states are required to transpose it into national legislation by June 2026? Given the scope of the changes, it is essential to begin preparations promptly.
Organizations with more than 250 employees will have to submit a report on the gender pay gap every year, while for smaller organizations, the reporting obligation will be implemented every three years.
In other words – Organisations with fewer than 100 employees will not have a reporting obligation, but due to the CSRD Directive, large corporations must take into account the responsibility of their suppliers, including small companies.
Equal pay is crucial not only for achieving social justice but also for strengthening society and the economy as a whole. Pay inequality, often associated with the gender pay gap, is not exclusively a ‘women’s’ issue; it represents a challenge that has long-term negative consequences for organisations, communities, and society at large.
Growth of sustainable and successful organisations – equal pay actively contributes to organisational success, and a workplace culture that values and promotes gender equality increases motivation, productivity, and emotional engagement among employees.
Encouraging equal parenting – equal pay supports equal parenting by simultaneously promoting the dismantling of traditional gender roles, reducing financial pressure, and enabling a better balance between work and family life.
Reducing economic inequality – pay disparities accumulate over time, leading to long-term economic harm. This results in lower purchasing power, reduced savings potential, and, ultimately, lower pension outcomes.
Reducing gender-based discrimination – equal pay reduces the scope for stereotypes and biases that play a significant role in hiring, talent recognition, and career advancement.
The Inc.Q Equal Pay Certificate is a recognition of the transparency and objectivity of your organisation’s pay systems, performance evaluations, and related bonuses. Only the most admirable employers hold this accreditation.