Latest news with #PayTransparencyDirective
IOL News
19-07-2025
- Business
- IOL News
Point of view: why the Fair Pay Bill could transform recruitment practices in South Africa
The Fair Pay Bill aims to revolutionise recruitment in South Africa by prohibiting employers from asking for salary history, promoting transparency and equity in pay practices. This article explores the implications of the Bill for job seekers and employers alike. Have you ever been asked to submit your payslip by a prospective employer, before you've even sat down for the interview? For many South Africans, it's a routine (and often frustrating) part of the job search. But that could soon change. The recently tabled Fair Pay Bill aims to put an end to this outdated practice and usher in a more equitable era of recruitment. If passed, it would prohibit employers from requesting your current or previous salary history and instead require them to be upfront about what they're willing to pay. In short, transparency becomes the rule, not the exception. According to Norma Mazibuko, partner, and Amandla Makhongwana, senior associate at Bowmans South Africa: 'This is a game-changer for both employers and job seekers and, if passed, is set to reshape recruitment, pay practices, and workplace culture across the country.' That statement isn't just hopeful, it's a challenge to long-standing hiring norms. Mazibuko and Makhongwana say South Africa isn't alone in rethinking how pay is structured. The European Union's Pay Transparency Directive is set for roll-out by June 2026, while several US states have already banned questions about salary history. The trend is clear: the world is moving towards fairer pay, and we'd be wise not to be left behind. What's powerful about the Fair Pay Bill is its emphasis on the root causes of inequality. Historically, linking new salaries to previous ones has trapped many, especially women, the youth, and people from marginalised communities, in a cycle of underpayment. Start low, stay low. If each new offer is based on an already disadvantaged benchmark, how do you ever break the cycle? And yet, in many HR departments across the country, this remains standard practice. Some would argue that knowing a candidate's pay history helps assess market value or avoid overspending. Yet this line of thinking contradicts the spirit of the Employment Equity Act, 1998 (EEA), and does little to close pay gaps. As Mazibuko and Makhongwana point out, the Bill 'is in line with this growing movement towards increased pay transparency.' It also reframes the conversation entirely: instead of asking what you used to earn, employers are being nudged to ask, what is this role worth, and what can this person bring to it? And merit-based pay? It thrives under this model because decisions are no longer anchored to arbitrary past figures but built around skills, potential, and responsibility. Key Highlights of the Bill: No more salary history questions: Employers may only consider past pay if a formal offer has already been made and the candidate initiates the disclosure. Pay ranges must be advertised: Vague terms like 'market-related' will no longer cut it. Candidates will know upfront what the job is worth. Transparent communication: Employees will be able to discuss pay openly, breaking down taboos and secrecy. Documented pay structures: Employers will need clear records of salary bands and justifications for pay decisions. It's not just about compliance. It's about modernising how we talk about pay and fairness. As employment law experts at Cliffe Dekker Hofmeyr (CDH) notes, the EEA 'aims to eliminate unfair discrimination and implement policies that correct historical disadvantages experienced by black people, women, and people with disabilities.' Yes, some employers may face new challenges: assessing value in specialised sectors without historic anchors, or losing the upper hand in salary negotiations. But perhaps it's time we stopped treating equity as a burden and started seeing it as an investment. Another promising ripple effect of the Bill is how it subtly intersects with broader conversations about the difference between minimum wage and a living wage. Is a legally defined minimum enough to cover housing, food, transport, and school fees? Or should we reframe wage structures entirely to reflect dignity and sustainability? The Fair Pay Bill invites employers and policymakers to ask these deeper questions. If enacted, this Bill will be more than legislative housekeeping. It will challenge the status quo, level the playing field, and build stronger trust between employers and the workforce. And in a country still working toward economic justice, that shift is not only overdue, it's necessary. * Maleke is the editor of Personal Finance. PERSONAL FINANCE
Irish Independent
13-07-2025
- Business
- Irish Independent
Looming pay transparency risks stoking tension and resentment
Up until now, this issue has been unlikely to arise, but this is about to change. On foot of a European directive, pay transparency must become law in Ireland by the middle of 2026 at the latest and when this happens employers will lose the significant information advantage they currently have over employees and job applicants. The key measures of the EU Pay Transparency Directive are: Job ads will have to include a salary level or a salary range – information that will be as much of interest to existing employees as it will be to job applicants. Employees will have the right to proactively request information on pay levels for their positions and to see the effect of career progression on pay. Gender pay gap reporting will continue for employers with a certain number of employees, but this reporting requirement will be extended to include the valuation of benefits. Where pay gaps above 5pc exist for any level in an organisation that cannot be justified using objective gender-neutral criteria, employers will be obliged to explain them. They may need to consult with workers' representatives and even potentially undergo joint pay assessments. Where pay gaps between men and women doing work of equal value exist, employers will need to address them. Given the level of change involved, these measures are going to have a major impact and create issues for employers that will be complex to manage. Mercer's global survey on Pay Transparency shows that organisations have an awareness of the expectations when it comes to pay transparency but are not yet prepared to navigate the path ahead. As it stands, for example, employers regularly assert that the existence of a gender pay gap does not mean that they are engaging in unfair pay practices. This is usually a fair assertion as the level of correlation between gender pay gaps and pay equity is little to none, but employers have rarely been required to prove that their pay practices are fair. Under the Pay Transparency Directive, the burden of proof on pay equity moves pretty decisively to the employer in the event of claims of unfair practice. Once the directive takes effect in Ireland, employees will be able to see how their pay compares with that of new hires and peers doing the same work or work of equal value. They will be free to form their own judgments on whether they are being paid fairly or not. Managerial discretion in setting pay can lead to perceptions of unfairness, especially when employees can compare their salaries with new hires. The common practice, where job markets are hot, of offering new hires premium salaries may produce a hostile reaction from existing employees when greater visibility over pay norms exist. At a minimum, employers will need to be able to justify such distinctions by reference to legitimate factors such as experience or qualifications. Given the potential for upheaval, it's likely that neither employers nor their people will want new anomalies to come to light every time a job and the accompanying pay range is advertised. To avoid this happening, employers will need to prepare, and they should start to do so by conducting a comprehensive pay-equity analysis. Under this process, an employer should assess current pay structures, identify any discrepancies, and evaluate the justification for these differences. By understanding the existing pay landscape, they can make informed decisions about necessary adjustments. Employers should also establish clear pay ranges for all roles within their organisation. This transparency will not only help in aligning salaries with market standards but also provide a framework for future hiring and promotions. Where pay ranges already exist, it should be checked that they reflect the organisational reality. If not, this situation should be addressed. Clear guidelines on how pay is determined – based on allowable factors such as relevant experience, performance and qualifications – should be communicated to all employees to foster trust and understanding. Training for hiring managers and HR personnel is crucial. They must be equipped to handle inquiries about pay and understand the implications of the new directive. Engaging with employees through surveys or focus groups can also provide valuable insights into their perceptions of pay equity and transparency. Objectively, a world in which pay is transparent may be a better one for both employers and employees. Arguments over fairness of pay can become toxic in a non-transparent world, with misinformation sometimes playing a very destructive role. This is far less likely to be a factor where pay is transparent, where ranges are visible and where the factors affecting pay have been clearly articulated. Danny Mansergh is the leader of the Career Practice at Mercer Ireland
Euronews
26-03-2025
- Business
- Euronews
Being transparent about pay could save EU women €700 per year
ADVERTISEMENT Women in the EU still earned, on average, 12% less than men in 2023, according to Eurostat. The EU's Pay Transparency Directive, which member states must incorporate into their national laws by June 2026, aims to address the gender pay gap. However, some business groups oppose certain provisions and are calling for an exemption for companies with 100 to 250 employees, rather than limiting it to those with fewer than 50 workers. The European Trade Union Confederation (ETUC) calculated that blocking the transparency would cost EU women at least €4.8 billion per year, potentially rising to €7.2b. This is equivalent to €465–€700 per woman annually. Despite these efforts, salary transparency in job postings remains very low in some of Europe's largest economies including Germany, with rates below 20%, according to hiring platform Indeed. 'The European Commission must include strong measures to support equal pay in its upcoming Roadmap for Women's Rights,' Isabelle Schömann, ETUC Deputy General Secretary, said. 'Equality thrives on transparency. The more we can shine a light on discrimination, the more we can force action to address its injustice.' Related Women's parity vital to EU competitiveness drive, says agency director Average salary rankings in Europe: Which countries pay the highest? ETUC estimates that the companies in Europe with between 100 and 250 employees — which could be subject to a transparency exemption — employ over 10 million women in total. 'Companies have been playing the card of being overburdened by regulation, but it is women workers who for too long have been overburdened with low pay,' Schömann said. ETUC emphasises that transparency has been shown to be a crucial lever for women workers and their unions to reduce the gender pay gap. Women in SMEs could lose €465–€700 per year ETUC found that if pay transparency requirements reduced the gender pay gap by 15%, the gap for 10.4mn women working in enterprises with 100 to 249 employees would decline from €4,640 per year to €3,944. That would result in a gain of around €700 per woman, or €7.2b in total. With a more conservative estimate of a 10% reduction, the gender pay gap would decrease to €4,176 per year, giving each woman a boost of around €465. In this case, excluding these workers in small and medium-sized enterprises from pay transparency would cost €4.8b annually. Reporting obligations ETUC states that lobby group BusinessEurope is advocating for the Commission to exclude the majority of companies covered by the Pay Transparency Directive from gender pay gap reporting requirements. In its report, Reducing Regulatory Burden to Restore the EU's Competitive Edge, BusinessEurope proposed that 'the scope of this article needs to be changed to exclude all SMEs with less than 250 workers from the reporting obligations'. 'BusinessEurope supports reasonable measures to reduce the gender pay gap. Unfortunately, the pay transparency directive imposes very burdensome pay reporting obligations and incomprehensible requirements ...on companies, which will not advance the cause of gender equality. It is a very clear case of necessary simplification,' the organisation told Euronews Business. Salary transparency significantly varies in top economies According to Indeed, as of the end of 2024, the UK had the highest salary transparency among six European countries, with 70% of job postings including salary information. In France, salary transparency stood at 51%, slightly above the 50% mark. In the Netherlands and Ireland, it ranged between 40-45%. ADVERTISEMENT However, Germany (16%) and Italy (19%) lagged significantly behind, with transparency rates falling below 20%. Reasons behind huge differences 'There is a stark contrast in salary transparency across Europe,' Lisa Feist, an economist at Indeed Hiring Lab, told Euronews Business. 'Labour markets have their marked differences and come with their own history and culture around pay.' She explained that differences in sectoral composition and wage-setting institutions likely also contribute to these very different transparency levels. ADVERTISEMENT 'Surveys indicate that comfort levels in discussing salaries differ significantly across Europe, making the transposition of the EU directive into national law a significant shift for many market participants.' she added. Transparency supports women and marginalised groups Lisa Feist also emphasised the key role of salary transparency in addressing the gender pay gap . 'Pay transparency—whether through salary data in job ads or early in the hiring process—helps reduce information asymmetry between employers and candidates,' she said. Noting that women and other marginalised groups often have less access to informal networks and may face penalties for negotiating assertively, she added: 'Providing salary information upfront strengthens their position in pay negotiations and promotes fairer outcomes.' Salary transparency is lowest in high-paid jobs Indeed data reveals that salary transparency is lowest in high-paying occupations. Among the six countries analysed, cleaning & sanitation had the highest transparency, followed by driving, education & instruction, and food preparation & services. ADVERTISEMENT In contrast, industrial engineering, software development, information design & documentation, project management, and law were among the least transparent job categories. Employers in high-wage industries tend to be less inclined to disclose salaries. This trend is consistent in five countries, except for the Netherlands. For example, in France, salary transparency was 68% in low-wage jobs, compared to 39% in high-wage positions. This pattern is even more strong in Ireland: 57% vs 18%.
Euronews
15-03-2025
- Politics
- Euronews
Tens of thousands attend anti-government protest in Serbia's capital
Europe needs to be able to defend itself against Russia, with or without the United States. That's the consensus in Brussels in light of Donald Trump's increasing alignment with the Kremlin. The EU reacted with proposals for massive defense spending programmes worth 800 billion euros. Other countries like the United Kingdom, Canada and Turkey are part of the process too. Are Europeans ready for a new geopolitical reality and defend itself? This comes with a hefty price tag. Germany is approaching the issue with a whatever-it-takes mentality… Should Europe be willing to do that? Questions to this edition's guests, all of them members of the European Parliament: Li Andersson from the Left group, Krzysztof from the Socialists & Democrats and Pekka Toveri from the European People's Party (EPP). When the Berlin Wall came down, Europe was jubilant. It symbolized the end of the Cold War - and the beginning of chronic under-investment in defense. Many European countries stopped mandatory military service and reduced arsenals and troop strength. The gaps were filled by 100,000 U.S. troops and nuclear weapons under the NATO umbrella. That era seems to be coming to an end. Trump's dizzying changes to the post-war order leaves European leaders scrambling to re-organize Europe's own defense, no matter the hefty price tag. The aim is twofold: to continue to stand 'shoulder to shoulder' with Ukraine and to be ready for the moment that may or may not come - the moment America turns it back on Europe completely. Is Europe finally waking up and smelling the coffee brewing in Washington and Moscow? Another topic: Trump's long-term vision of replacing taxes with tariffs has already caused nervousness among consumers - and among investors, who hate nothing more than uncertainty. Yet Washington keeps punishing its major trading partners Canada and Mexico, only to grant deferrals or exemptions the next morning. Meanwhile, the EU hit back at Trump's imposed 25% global steel and aluminum announcing retaliation. Can a trade war still be avoided? Donald Trump hates the European Union. According to him, the bloc was only created to "screw the United States". Now he's on a mission to seek payback for past decades during which the Europeans took advantage of America, as he believes it. Is Europe prepared for an economic rollercoaster that could end up in a global recession? Trump was elected on a pro-growth platform, but now the 'Trump bump' risks becoming the 'Trump slump' across financial markets. Can Europe escape such an economic downturn? Where should we look for support? Finally, the panel discussed women's rights in the EU. A few days ago, the European Commission unveiled a roadmap for women's rights – the only mention of equality in its entire work programme. Last term, key legislation for equality was passed, including the Pay Transparency Directive, new EU rules on gender balance on corporate boards and the Work-Life Balance Initiative. This time, however, equality doesn't appear to be a priority. Yet, Europe remains far from achieving gender equality, with persistent pay gaps, gender-based violence and unequal domestic labour still posing major challenges. A deafening sound of whistles and vuvuzelas echoed throughout downtown Belgrade on Saturday as a major rally was held against populist President Aleksandar Vucic and his government. Huge crowds converged on downtown Belgrade for the rally, which is a culmination of months of almost daily anti-corruption protests that have posed the biggest challenge to Vucic's 13-year firm grip on power in Serbia. Many city residents came out to welcome the protesters, most of them university students, who came into Belgrade from across the country, waving flags and chanting slogans. With public transport suspended, columns of people flowed into the city centre from nearby municipalities. A large number of cars also headed towards the city, decorated with Serbian national flags, greet citizens with their horns, creating a carnival atmosphere. President Vucic has repeatedly warned that violence is planned at the rally and threatened arrests over any incidents. Vucic supporters have been camping in the city centre, further fuelling fears of clashes. Hundreds of pro-Vucic bikers also placed themselves in a line in front of Serbia's parliament, seemingly to protect it if any protesters were considering gathering in front of it. He's also warned and repeated claims that Western intelligence services were behind the protests that aim to oust him from power. 'I do not accept blackmail, I will not agree to pressure, I am the president of Serbia and I won't allow the street to set the rules,' Vucic said. Students have led the nationwide anti-graft movement, which started after a concrete canopy collapsed at a train station and killed 15 people in Serbia's north more than four months ago. A 15-minute silence was held just before midday to remember the victims. Earlier, police detained six opposition activists on suspicion of 'preparing actions against the constitutional order and security' a day after an alleged recording of their meeting was broadcast on pro-government television stations on Thursday. 'The Serbian state will do everything to secure peace,' Vucic said. 'Those disrupting peace will be arrested and severely punished.' Previous student-led rallies in other Serbian cities have been peaceful while drawing huge crowds. In Belgrade, tensions soared after Vucic's supporters, including former paramilitary fighters, set up a camp in a park outside the presidency building. Tractors were parked around the camp on Friday. Authorities said that the parliament building across the street would be locked for the next three days because of security reasons. Railway traffic was suspended, along with many bus links to Belgrade. Responding to tensions, the European Union's mission in Serbia said on Friday that 'freedom of assembly is a fundamental right' and the safety of participants and institutions must be ensured. 'Violence must be avoided,' warned the EU. Serbia is formally seeking EU membership, but the incumbent government has been accused of stifling democratic freedoms while strengthening relations with Russia and China. Russia announced on Friday that its forces had recaptured another settlement in the Kursk region previously held by Ukraine. The Russian Defence Ministry specified in a statement that it had reclaimed the settlement of Goncharovka, in addition to 28 other settlements in western Kursk over the past week. Russian state media released a video on Friday showing drone footage from Sudzha to support their recapture claims. Sudzha, with a reported population of about 5,000 people before the offensive, was the biggest town seized by Ukrainian forces last year as part of their surprise cross-border offensive. Ukraine's top military commander, Oleksandr Syrskyi, said on Thursday that Russian aircraft conducted so many strikes on Kursk, adding that Sudzha was almost completely destroyed. Kyiv says it was able to successfully repel close to two-dozen Russian attacks in the region. He did not comment on whether Ukraine still controlled the settlement, but says Ukraine was 'manoeuvring troops to more advantageous' positions. The Kremlin says that Ukrainian forces suffered major losses in military assets in their counteroffensive. A spokesperson for the defence ministry note that more than 260 Ukrainian troops were killed in Russian operations. Additionally, five armoured personnel carriers, two combat armoured vehicles, four artillery pieces, two mortars and three UAV control points on the frontlines in Kursk were destroyed. More than 200 civilians were evacuated from their homes in Sudzha during the Russian offensive. The Kremlin says evacuees were moved into temporary shelters until the settlement is deemed safe for civilians.
Euronews
15-03-2025
- Politics
- Euronews
Brussels, my love? Europe's defense against Trump and Putin
Europe needs to be able to defend itself against Russia, with or without the United States. That's the consensus in Brussels in light of Donald Trump's increasing alignment with the Kremlin. The EU reacted with proposals for massive defense spending programmes worth 800 billion euros. Other countries like the United Kingdom, Canada and Turkey are part of the process too. Are Europeans ready for a new geopolitical reality and defend itself? This comes with a hefty price tag. Germany is approaching the issue with a whatever-it-takes mentality… Should Europe be willing to do that? Questions to this edition's guests, all of them members of the European Parliament: Li Andersson from the Left group, Krzysztof from the Socialists & Democrats and Pekka Toveri from the European People's Party (EPP). When the Berlin Wall came down, Europe was jubilant. It symbolized the end of the Cold War - and the beginning of chronic under-investment in defense. Many European countries stopped mandatory military service and reduced arsenals and troop strength. The gaps were filled by 100,000 U.S. troops and nuclear weapons under the NATO umbrella. That era seems to be coming to an end. Trump's dizzying changes to the post-war order leaves European leaders scrambling to re-organize Europe's own defense, no matter the hefty price tag. The aim is twofold: to continue to stand 'shoulder to shoulder' with Ukraine and to be ready for the moment that may or may not come - the moment America turns it back on Europe completely. Is Europe finally waking up and smelling the coffee brewing in Washington and Moscow? Another topic: Trump's long-term vision of replacing taxes with tariffs has already caused nervousness among consumers - and among investors, who hate nothing more than uncertainty. Yet Washington keeps punishing its major trading partners Canada and Mexico, only to grant deferrals or exemptions the next morning. Meanwhile, the EU hit back at Trump's imposed 25% global steel and aluminum announcing retaliation. Can a trade war still be avoided? Donald Trump hates the European Union. According to him, the bloc was only created to "screw the United States". Now he's on a mission to seek payback for past decades during which the Europeans took advantage of America, as he believes it. Is Europe prepared for an economic rollercoaster that could end up in a global recession? Trump was elected on a pro-growth platform, but now the 'Trump bump' risks becoming the 'Trump slump' across financial markets. Can Europe escape such an economic downturn? Where should we look for support? Finally, the panel discussed women's rights in the EU. A few days ago, the European Commission unveiled a roadmap for women's rights – the only mention of equality in its entire work programme. Last term, key legislation for equality was passed, including the Pay Transparency Directive, new EU rules on gender balance on corporate boards and the Work-Life Balance Initiative. This time, however, equality doesn't appear to be a priority. Yet, Europe remains far from achieving gender equality, with persistent pay gaps, gender-based violence and unequal domestic labour still posing major challenges. Serbia's capital, Belgrade, was on edge on Friday night as thousands of people participated in a 'joyful prelude' protest to a major anti-government rally on the weekend against President Aleksandar Vucic. Serbians came out to welcome thousands of university students who converged on Belgrade from across the country for the rally planned for Saturday. Saturday's protest is regarded as a culmination of months of anti-graft demonstrations in the Balkan country that have posed the biggest challenge so far for Vucic's decade-long firm grip on power in Serbia. Protesters waved flags, chanted slogans and lit up flares and fireworks in the downtown streets of Belgrade. The image painted a contrast to weeks of fear-mongering spread by Vucic's populists with an aim to dissuade people from attending Saturday's rally. The autocratic leader has repeatedly warned that violence is planned at the rally and threatened arrests over any incidents. Vucic supporters have been camping in the city centre, further fuelling fears of clashes with security forces. Vucic warned and reiterated claims that Western intelligence services were behind the protests that aim to oust him from power. 'I do not accept blackmail, I will not agree to pressure, I am the president of Serbia and I won't allow the street to set the rules,' Vucic said. Students have led the nationwide anti-graft movement, which started after a concrete canopy collapsed at a train station and killed 15 people in Serbia's north more than four months ago. Earlier, police detained six opposition activists on suspicion of 'preparing actions against the constitutional order and security' a day after an alleged recording of their meeting was broadcast on pro-government television stations on Thursday. 'The Serbian state will do everything to secure peace,' Vucic said. 'Those disrupting peace will be arrested and severely punished.' Previous student-led rallies in other Serbian cities have been peaceful while drawing huge crowds. In Belgrade, tensions soared after Vucic's supporters, including former paramilitary fighters, set up a camp in a park outside the presidency building. Tractors were parked around the camp on Friday. Authorities said that the parliament building across the street would be locked for the next three days because of security reasons. Railway traffic was suspended, along with many bus links to Belgrade. Responding to tensions, the European Union's mission in Serbia said on Friday that 'freedom of assembly is a fundamental right' and the safety of participants and institutions must be ensured. 'Violence must be avoided,' warned the EU. Serbia is formally seeking EU membership, but the governing populists have been accused of stifling democratic freedoms while strengthening relations with Russia and China.
