11 August 2021

The European Commission seeks to strengthen the principle of equal pay for work of equal value between men and women through pay transparency and enforcement mechanisms.

It believes that its preferred package of legislative action – to ensure transparency of salary information, strengthened pay reporting, and the implementation and enforcement of the existing legal framework – will deliver threefold benefits.

First, we can expect improved job satisfaction and engagement among workers. Second, employers will enjoy increased employee retention, increased “attractiveness” and profitability. Third, society as a whole will benefit from a higher level and greater perception of equality.

The purpose of this paper is to outline legislation imposed by the UK government to increase awareness and improve pay equality, briefly examine the apparent pitfalls of top-down action plans to reduce gender pay gaps, and show lessons the EU can learn.