The Pay Transparency Directive (Directive (EU) 2023/970 of the European Parliament and of the Council) was adopted on 10 May 2023 and published in the Official Journal of the EU on 17 May 2023. Its objective is to strengthen the principle of equal pay for equal work or work of equal value by introducing obligations for employers regarding pay transparency and eliminating gender-based discrimination. Member States, including Bulgaria, are required to transpose the directive into national law by 7 June 2026 and to gradually implement the new employer obligations according to the prescribed timeline.
Although Directive (EU) 2023/970 was adopted in May 2023, Bulgaria has yet to take concrete steps toward its transposition into national legislation. While the Ministry of Labour and Social Policy has announced the formation of an interinstitutional working group, no draft legislation or proposed amendments to existing acts have been published. This raises concerns about whether the country will meet the transposition deadline of 7 June 2026.
In a previous publication, we outlined the main obligations that employers will face.
We revisit the expected legal framework and share practical guidance on how to begin preparing for the upcoming changes. It is important to consider proactive steps now, even though the legislative process in Bulgaria is still delayed.
Key Rights and Obligations
- Pre-employment transparency – employers must indicate the starting salary or salary range in job postings or prior to interviews.
- Ban on asking about prior pay – employers may not request information on a candidate’s previous salary.
- Right of access to pay information – employees may request individual and average pay levels, broken down by gender, for workers doing the same or equivalent work.
- Reporting obligations – employers must submit regular reports on gender pay disparities.
- Prohibition of pay confidentiality clauses – employees must be free to disclose and discuss their pay.
Timeline for Implementation
From 7 June 2026:
- Salary ranges must be included in job advertisements
- Prohibition on requesting salary history
- Obligation to provide pay data on comparable employees upon request
Starting from 7 June 2027, the mandatory reporting of gender pay gaps will be introduced. Employers with more than 250 employees will be required to report annually, while those with between 150 and 249 employees will report every three years. For employers with 100 to 149 employees, the requirement will apply from 7 June 2031, also with a three-year reporting cycle.
Recommended Steps for Employers
- Review existing internal salary policies and draft appropriate clauses for implementation once the directive is transposed in Bulgaria.
- Examine standard employment contracts for pay confidentiality provisions that may need to be removed.
- Review internal labor rules and regulations and prepare to eliminate or amend any language that may conflict with the new pay transparency obligations.
- Based on your workforce size and projected growth over the next 1–2 years, determine when and which reporting obligations will apply to your organization.
- Analyze your workforce structure and identify potential job categories. Consider whether a uniform job classification system is in place.
- Assess whether your current job levels and grading system are objective, transparent, and non-discriminatory.
- Consider whether your recruitment strategy needs to change and review existing job posting templates and hiring procedures. If you work with external recruiters, discuss how compliance will be ensured.
- Reevaluate recruitment processes – including advertised salaries, instructions to recruitment agencies, and interview questions – to ensure alignment with the new requirements.
- Review all internal HR documentation and, if necessary, create new policies or materials to ensure all relevant parties are informed and prepared for compliance.
