Equal Pay for Equal Work: The Principle in Practice

In interpreting and applying this principle, companies can rely not only on the Pay Transparency Directive but also on EU case law, which provides useful methodological guidance for objectively comparing the value of different job roles. However, the Hungarian implementing regulation has not yet been adopted.

Can Different Job Roles Represent the Same Value?

While it is relatively straightforward to require equal pay and conditions for identical positions, the comparison of different roles raises more complex questions. How, for example, can one assess and compare the value of the work performed by sales assistants and warehouse workers?

Nevertheless, every job must be evaluated in an objective and gender‑neutral manner. Relevant assessment criteria may include required education, professional knowledge, skills, length of training, the physical or mental effort involved, the level of responsibility, working conditions, and soft skills (such as courtesy, patience, and similar attributes). These and similar factors must be weighted and scored, and the aggregated results of different job roles must then be compared.

Based on this methodology and in cooperation with employee representatives, employee categories can be established in which remuneration is equal. These categories do not coincide with job titles or positions: entirely different tasks may fall into the same category if they are deemed to be of equal value. This categorisation process must not be arbitrary or based on subjective considerations.

Naturally, pay differences may continue to exist in the future where they are justified by objective and gender‑neutral criteria, such as demonstrable differences in performance.

How Can the Pay Transparency Directive Be Applied During Recruitment?

Pay transparency obligations do not apply only to large companies. Regardless of company size, job applicants are entitled to receive information about the initial salary or salary range associated with the position. Although this information does not have to be included in the job advertisement itself, candidates must be informed in such a way that enables them to negotiate their pay in an informed and transparent manner.

Pay Transparency During Employment

Employers are required to make accessible the objective and gender‑neutral criteria used to determine pay levels and pay increases. This means that, irrespective of company size, all employees have the right to request information about their own pay and the average pay levels—broken down by gender—within their category. At the same time, any restriction on communication about pay is prohibited.

Reporting Obligations and Joint Pay Assessments: Companies with More Than 100 Employees

Companies employing more than 100 workers are required to prepare regular reports on gender pay gaps. If, in any category, the difference exceeds 5% without objective justification and the employer fails to correct it within six months, a joint pay assessment must be carried out together with employee representatives.

What Are the Legal Consequences of Breaching the Pay Transparency Directive?

The specific sanctions will be set out in Hungarian legislation and are therefore not yet known, but they must be effective and dissuasive. Employees are entitled to full compensation retroactively for up to three years, and the burden of proof lies with the employer.

How Can LeitnerLaw and LeitnerLeitner Support You?

Feel free to contact LeitnerLaw and the LeitnerLeitner World of Work practice group with any questions related to pay transparency. We develop employee competency maps that systematise required skills and capabilities, uncover organisational potential, and form the basis for a coherent job structure. Building on this foundation, you can confidently establish a transparent, lawful and defensible remuneration system.

Although the national implementing rules are not yet known, companies should already begin reviewing their organisational and pay structures and defining job categories and pay levels. An objective and gender‑neutral pay system can only be defended if it is consciously and carefully designed. Given that many companies will have reporting obligations in the near future, preparation should not be delayed.

Further details on deadlines and company‑size‑specific obligations can be found in our article.

This article summarises the Pay Transparency Directive: Directive (EU) 2023/970 of the European Parliament and of the Council.