New pay transparency rules to take effect in June

Every employee will have the right to receive information regarding the average salary levels within the enterprise for the same job level. This is provided for by amendments to the Protection Against Discrimination Act, which are set to enter into force on June 7, 2026.

The changes are being introduced due to the requirements of a European directive on pay transparency and equal pay for women and men. Bulgaria must incorporate the new rules into its legislation within specific deadlines to avoid infringement proceedings by the European Union.

According to the explanatory memorandum of the bill, the gender pay gap in our country reached approximately 12% in 2024, which is above the EU average of 11.1%.

The new texts grant employees the right to request in writing information about their remuneration and the average pay levels for employees performing the same or work of equal value, including a breakdown by gender. The employer will be required to provide this information within two months.

When the data could lead to the disclosure of a specific salary of another employee, the employer may provide the information through a trade union organization or the Commission for Protection Against Discrimination. They will have the right to consult employees regarding protection options in cases of unequal pay.

The amendments also introduce new obligations for employers. If a pay gap between women and men of at least 5% is established, a joint assessment with employees must be conducted to determine the causes and measures for overcoming it.

For companies with 100 or more employees, an obligation is introduced for periodic reporting of pay gaps based on seven indicators, as well as mechanisms for correcting unjustified differences exceeding 5%.

Companies with over 250 employees will submit such information annually, while enterprises with 100 to 249 employees will do so once every three years. Some of the new requirements will be implemented gradually starting from 2027 and 2031.

According to the authors of the bill, the reasons for pay gaps are related to a lack of transparency, insufficient control, and limited access to legal protection mechanisms.