- Scope of the new rules on pay transparency
Although the deadline for transposing Directive (EU) 2023/970 on pay transparency expired on 7 June 2026, the legislative process in Romania has not yet been finalised. On 17 June 2026, a legislative proposal on pay transparency and the strengthening of the application of the principle of equal pay for women and men for equal work or work of equal value was tabled in the Senate. The bill, registered under No. B392/2026 and currently before the Senate as the first chamber to which it was referred (‘the Bill’), is due to go through the stages of the parliamentary adoption procedure. However, the regulatory direction is already clear: equal pay and pay transparency are emerging as key priorities in labour relations.
For employers, the main impact lies not only in the introduction of new compliance obligations, but above all in the increased risk of litigation concerning pay discrimination. Whilst such cases have been relatively rare to date, due to the confidential nature of pay and the difficulty of proving discrimination, the Bill facilitates workers’ access to relevant information and significantly reduces evidential hurdles. Furthermore, it removes the possibility of including confidentiality clauses relating to pay in individual employment contracts.
At the same time, the rights of individuals who consider themselves to have been wronged are strengthened; they may claim full compensation for pay gaps, unpaid bonuses and benefits, lost career opportunities, non-pecuniary damage, and interest on sums due.
In this context, pay transparency can no longer be viewed solely as a legal obligation. It becomes an essential risk management tool, with every pay difference required to be explained and justified by objective, verifiable, and consistently applied criteria.
The scope of the new rules is extensive. Beneficiaries include not only employees in active employment, but also candidates involved in recruitment processes and former employees. The latter will be able to initiate proceedings even after the employment relationship has ended, meaning that risks associated with pay policies may persist beyond termination of employment.
It is also important to emphasise that the new rules do not apply exclusively to large companies. The principles of equal pay, transparency of pay criteria, and the right to information will apply to all employers, regardless of size, whilst only certain additional reporting obligations will apply to organisations exceeding the statutory staff thresholds.
Below, we analyse the main obligations introduced by the Bill, as well as the practical challenges employers will need to address in order to ensure compliance with the new pay transparency and equal pay requirements.
- The obligation to establish equal pay systems
The Bill introduces an obligation with a direct impact on pay policies: employers must ensure that pay systems comply with the principle of equal pay for equal work or work of equal value. In other words, pay differences will have to be justified by objective, transparent, and gender-neutral criteria, such as skills, professional experience, qualifications, level of responsibility or performance.
The stakes are all the higher given that the analysis of pay equality will not be limited to basic pay. The concept of pay is broad and includes allowances, bonuses, premiums, supplements, benefits in kind and any other advantages granted in connection with the work performed. Consequently, employers will need to assess the entire remuneration package and ensure that the rules governing its allocation are consistent and can be objectively justified.
At the same time, the new framework goes beyond the traditional approach based solely on job titles or positions held. The assessment will focus on the actual value of the work performed, by reference to criteria such as the required skills, responsibilities undertaken, effort expended and working conditions. Accordingly, roles that are formally different may still be considered comparable if they involve similar requirements and levels of responsibility.
In practice, one of the most significant challenges will be documenting how pay levels and pay differentials are determined. Employers will need to rely on clear, well-documented, and consistently applied job evaluation systems, capable of demonstrating that existing differences reflect legitimate criteria and do not result in discriminatory effects. In the absence of such a framework, justifying pay policies may become considerably more difficult in the event of an audit or dispute.
- Transparency in recruitment
The new rules introduce pay transparency already at the recruitment stage. Employers will be obliged to inform candidates, in writing, of the remuneration associated with the position, either in the job advertisement or, at the latest, before the interview takes place.
The information provided is not limited to basic salary, but must cover the salary level or range offered, as well as the main components of the remuneration package. Accordingly, where applicable, candidates must also be informed about bonuses, allowances, variable remuneration components, or other benefits included in the package offered.
Another important change is the prohibition on requesting a candidate’s salary history. The purpose of this measure is to prevent the perpetuation of existing pay gaps and to ensure that remuneration is determined solely by reference to the requirements and value of the position in question.
For employers, these obligations will require greater rigour in defining and communicating remuneration packages from the recruitment stage onwards, as well as a review of the practices and documentation used in recruitment processes.
- Workers’ right to information
The Bill enshrines an extended right for workers to obtain information on pay, marking a significant shift from the current regime, where pay confidentiality has effectively limited access to such data. The new framework aims to facilitate monitoring of compliance with the principle of equal pay.
Workers will be entitled to request information both on their own pay levels and on average pay levels, broken down by gender, for categories of workers performing the same work or work of equal value. Employers will be required to respond to such requests within a maximum of 30 working days.
In addition to individual requests, a general obligation of internal transparency is also introduced. Employers must ensure access to the criteria for determining pay, the applicable pay levels and, where relevant, the rules governing pay progression. This latter obligation does not apply to employers with fewer than 50 workers. In addition, by the end of the first quarter of each year, workers must be informed of the existence of these rights and the procedures for exercising them.
At the same time, the right to information is balanced against data protection rules. Where the provision of information would allow the identification of a specific worker’s pay, access is restricted and may only be granted through employees’ representatives, the Territorial Labour Inspectorate, or the National Council for Combating Discrimination (CNCD).
- Reporting pay gaps and joint pay assessment
The Bill introduces, for employers of a certain size, reporting obligations regarding pay gaps between women and men, with the aim of highlighting not only internal statistics but also any discrepancies that cannot be justified by objective criteria.
The reporting obligation applies to employers with at least 100 workers and is structured according to the size of the organisation. Thus, employers with more than 250 employees must report annually (from 7 June 2027), those with 150–249 employees must report once every three years (from 2027), and those with 100–149 employees must report once every three years, starting from 7 June 2031. Organisations below this threshold may report on a voluntary basis.
The report provides a detailed overview of the pay structure, including gender pay gaps – both overall and by variable pay components – the median pay gap, the distribution by quartiles, and the proportion of employees receiving bonuses and other benefits, including across categories of work of equal value. The data must be validated by the employer following consultation with workers’ representatives, where such representatives exist.
Some of this information will be made public, while detailed breakdowns will be communicated to workers and their representatives. In addition, workers, trade unions, the Labour Inspectorate and the National Council for Combating Discrimination (CNCD) may request clarifications, and the employer must respond within 30 working days. Differences that are not objectively justified must be remedied within 90 days.
Where a pay gap of at least 5 per cent persists within a category of employees without objective justification and is not corrected within six months, a joint pay assessment with employees’ representatives becomes mandatory, in order to identify and address the underlying causes.
Overall, these mechanisms transform pay analysis into a formalised and continuous process, in which the documentation and justification of pay criteria become essential for managing the risk of non-compliance.
- Penalties, disputes and compensation
The Bill introduces a dedicated system of sanctions for non-compliance with obligations relating to pay transparency and equal pay. This includes, among other things, failure to inform candidates about pay, requesting pay history, refusing to provide information on remuneration criteria, or failing to comply with reporting obligations. Fines may range from 3 to 5 times the gross minimum wage, and, in the case of repeat offences, from 5 to 10 times the gross minimum wage.
Furthermore, workers who consider themselves to have been discriminated against may claim full compensation for the damage suffered, including pay differentials, lost bonuses and benefits, non-pecuniary damage, and interest. The limitation period for bringing a claim before the courts has been extended to 3 years, and the burden of proof is reversed: once there are indications of discrimination, the employer must demonstrate that the differences in remuneration are justified by objective criteria.
- Key takeaways
The Bill on pay transparency marks a paradigm shift in the field of equality: the focus is shifting from penalising discrimination to preventing it through mechanisms of transparency, reporting and justification of pay differentials.
Although the final form of the legislation may still undergo adjustments during the parliamentary process, the regulatory direction is already clear. In this context, employers’ internal preparations become essential and should be initiated early, without waiting for the law to be formally adopted.
In practice, a first step is to audit pay policies, identify categories of workers performing work of equal value and verify the consistency of pay differentials against objective criteria.
At the same time, recruitment processes will require significant adjustments. Job advertisements, communication with candidates and pre-interview procedures will need to be aligned with the new pay transparency requirements, including the prohibition on requesting salary history.
Last but not least, internal documentation will need to be reviewed and updated: pay policies, internal regulations, job descriptions, promotion criteria, confidentiality clauses and procedures for responding to employees’ requests will become key elements in demonstrating compliance.