The government has released draft legislation to transpose the EU Pay Transparency Directive (2023/970) for public consultation. While the draft largely mirrors the text of the directive, it introduces some technical deviations relating to employer requirements and pay reporting obligations. It remains to be seen whether the draft legislation will be formalized into law by the June 7, 2026, transposition deadline. As of 2024, Romania had an unadjusted gender pay gap of 3.7%, well below the EU average of 11.1% (Eurostat data).
New requirements in Romania for pay transparency include:
- Pay range disclosure during recruitment: Employers would be required to provide information on the initial pay level or pay range, either in the job postings or in writing prior to any interviews, and would be prohibited from asking candidates about their current salary or salary history
- Pay structures: Employers would need to organize pay structures and define worker categories using gender-neutral criteria. Such criteria must include skills, intellectual or physical efforts, responsibilities and working conditions; the draft also adds professional knowledge (a factor not explicitly listed in the directive). Pay structures and progression would need to align with these criteria
- Transparency on pay setting and progression: Employers would be required to provide employees with information on the criteria used to determine pay levels and pay progression (where applicable)
- Right to information: Employees would be entitled to request information on individual pay levels and on average pay levels by gender for comparable worker categories, which employers would need to provide within 30 workdays (instead of two months, as provided in the directive)
- Pay reporting: Reporting thresholds, timelines and obligations would follow the directive's framework. From June 7, 2027, organizations with 250 or more employees would be required to report gender-based pay gaps by entity and category of workers annually, while employers with 150 to 249 employees would report as from the same date, every three years. Employers with 100 to 149 employees would also be required to report every three years but as from June 7, 2031. Reports would have to be submitted to the National Agency for Equal Opportunities (ANES); ANES would act as the competent authority overseeing pay transparency reports and obligations, alongside the National Council for Combating Discrimination (CNCD) and labor inspectorates. Reporting would be voluntary for companies with fewer than 100 employees
- Remediation of unjustified pay gaps and joint pay assessments: Employees, their representatives, labor inspectorates and the CNCD would be entitled to request clarification from employers regarding pay gaps. Employers would have 30 workdays to respond and justify any differences on objective, gender-neutral criteria. Where unjustified pay differences exist between men and women performing work of equal value, employers would be required to remedy the gap within 90 workdays, in cooperation with employee representatives (or within six months if the situation justifies a longer period). Where pay gaps of 5% or more by worker category cannot be objectively justified or corrected within six months of reporting, employers would be required to conduct a joint pay assessment and develop an action plan to address the gap in cooperation with employee representatives
The draft legislation remains under discussion and may be amended before adoption. Employers should monitor its development and prepare for implementation, including establishing the necessary data collection and reporting systems, to ensure compliance.
