Unjustified Wage Gaps: New Employer Reporting Obligations and Sanctions

Employers with 100 or more staff will soon face mandatory gender pay gap reporting, forcing them to justify pay disparities or risk legal repercussions under incoming Polish labor regulations.

Reporting timelines and requirements

Employers with 150 or more employees must submit their first wage gap reports by June 7, 2027, while those with 100–149 employees have until June 7, 2031. This legislation implements the EU Directive 2023/970 regarding wage transparency.

Companies must report several metrics, including the overall gender pay gap and disparities within specific employee categories. These metrics are based on gross annual remuneration and hourly pay rates, excluding actual hours worked.

Calculating the gender pay gap

The gap is calculated by determining the average annual and hourly wages separately for men and women. Employers must also report disparities specifically concerning variable and supplementary components, excluding base hourly or monthly rates.

For every identified category of employees—defined as those performing work of equal value—the employer must compute four separate indicators. Failure to provide objective, gender-neutral justifications for these gaps can lead to legal complications.

Joint wage assessments and remediation

If a gender pay gap of at least 5% persists in any category without objective justification, the employer is required to conduct a joint wage assessment with employee representatives or trade unions.

This assessment involves an analysis of wage differences to identify root causes. Following the process, the employer must implement remedial actions within 10 months to eliminate unjustified disparities and ensure gender-neutral pay structures.

Penalties for non-compliance

Violating the regulations regarding mandatory joint wage assessments constitutes a legal offense. Employers failing to meet these obligations face potential fines ranging from 2,000 to 60,000 PLN.