(A) Framework
Directive (EU) 2023/970 of the European Parliament and of the Council (“Directive”) strengthened the principle of equal pay between men and women for equal work or work of equal value, introducing new obligations for employers regarding pay transparency and expanding the range of employees’ rights in this area.
The deadline for transposition of the Directive into national law expired on 7 June 2026. At the date of this memorandum, Portugal has not yet adopted specific national legislation transposing the Directive.
Nevertheless, Law No. 60/2018 of 21 August already includes some relevant measures in this context. Indeed, many companies have been notified in recent years by the Authority for Working Conditions to submit Pay Gap Assessment Plans, under the principle of equal pay for equal work or work of equal value.
Below, we set out the main obligations arising from the Directive for organisations, highlighting the impact they may have on their internal policies.
(B) Main obligations for employers
1. Information in recruitment processes
Employers must ensure that job applicants are informed about the initial pay or the applicable pay range, as well as about the relevant provisions of the applicable collective agreement. This obligation may be fulfilled in the job vacancy notice or before the interview, enabling informed and transparent negotiation.
Furthermore, the possibility of questioning applicants about their current or previous pay is restricted. The obligation to use gender-neutral language in job vacancy notices and job titles is also noteworthy.
2. Objective and gender-neutral pay structures
Companies must ensure that their pay policies are based on objective, transparent and gender-neutral criteria, guaranteeing easy access for employees to the criteria used to determine pay, pay levels and pay progression.
3. Employees’ right to information
Employees’ rights to information are strengthened, as employees must have access to information on their individual pay level and on average pay levels, broken down by sex, for categories of employees performing the same work as them or work of equal value to theirs. This information must be requested and provided in writing, within a reasonable period not exceeding two months from the date on which the request is made.
4. Periodic reporting of existing pay gaps
Companies with at least 100 employees must periodically report on the pay gap between female and male employees with reference to the previous calendar year. In this regard, it should be noted that national legislation may extend the scope of this obligation to companies with fewer than 100 employees.
(C) Conclusions
The Directive introduces a significant strengthening of requirements regarding equal pay and pay transparency, covering the entire employment relationship, from the opening of the recruitment process with the publication of the job vacancy notice.
Despite the fact that Portugal has not yet transposed the Directive, companies should begin preparing for the new obligations referred to above, by analysing and adapting their current remuneration policies.
In this context, anticipating these measures may prove decisive to ensure compliance with the applicable legislation and an adequate transition to the new pay transparency regime.