Soon, we’ll see our colleagues’ pay – workplace conflicts on the horizon?

Equal pay for equal work — it’s a familiar slogan to many, but putting it into practice is far trickier than it first appears. That’s why European lawmakers have come up with an administrative approach to enforce it: if I can see what my colleague earns, I can also ask for the same amount, or even decide to leave if I’m not paid fairly.

Women earn significantly less than men

The professional term for this is pay transparency, a clear and open system that defines what salary range is fair and expected for a given job or position, regardless of gender.

In Hungary, for example, statistics show that women earn on average 17% less than men for the same work. Across the European Union, the gap is slightly narrower at 13%, but it still remains a long way from achieving true pay equality for identical roles.

• How much can guest workers earn in Hungary?

The EU’s pay transparency directive will apply to both private companies and the public sector, giving member states until next October to create their own regulations to promote wage transparency. From that point on, companies will have to demonstrate that their pay structures are based on objective, gender-neutral criteria, making it possible to fairly compare the value of work performed.

It’s much better if future employees know their salary in advance

The directive covers the entire remuneration system, so bonuses, premiums, and other benefits can no longer be used to mask an employee’s true earnings.

However, this doesn’t mean salaries will be personalised. Rather, the goal is for the evaluation and payment processes to be transparent and straightforward, leaving no room for discrimination.

• Minimum wage in Hungary remains among the lowest in the EU

PwC’s latest research shows that employees aren’t primarily seeking personalised pay but rather clarity on the criteria management uses to decide salaries. According to Profession.hu, job ads that include salary information are already 20% more effective, so companies are encouraged to adopt this practice voluntarily.

The law has yet to be published

Hungarian legislation on this matter has yet to be issued. To assist organisations in preparing for these changes, PwC and Profession.hu have joined forces. Their campaign, built on social media, podcasts, videos, professional articles, and events, aims to provide companies with guidance on the EU directive—offering numerous practical tips for establishing transparent pay practices even before the laws come into effect.

• Click for more articles concerning the average wage in Hungary.

In their first video, they explain exactly what data companies will need to publish and when they must disclose salary information related to specific positions during recruitment. You can watch the video, unfortunately, it is in Hungarian.