French companies were soon forced to publish the salaries of all employees

France is one of the countries where the gender pay gap still applies. However, the new law is supposed to change that. It calls for full transparency on pay to encourage companies to end inequalities.

It must be said that this approach is not new. The index, which was introduced in 2019, made it possible to assess the level of salary discrimination within the company. According to certain criteria, companies were given a score. When it was wrong, corrective action including multiple sanctions was applied. However, this initiative, criticized in particular by MPs and the Supreme Council for Gender Equality (HCE), did not bring the expected results.

Salary transparency until 2026

According to data published by INSEE, women’s salaries will be up to 15% lower than men’s in 2023. However, a new European directive, voted in June 2023, intends to shake things up. This requires companies to be fully transparent about pay, starting with the announcement of compensation to candidates during recruitment and subsequent internal communications. Until then, talking about salary in the company is considered taboo, especially by the older generation. This is precisely what will be changed by the European directive, which will be gradually implemented by 2026.

The aim of the latter is primarily to put an end to inequalities at the level of private companies through a transparency law in the absence of control over salaries. Indeed, if the government can impose a legal minimum wage on employers, it cannot control the remuneration of employees. In case of violation of the European directive, sanctions will be applied. At the moment it is not clear how it will be implemented.

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