New Polish regulations on wage transparency are approaching, obligating employers to report pay gaps and potentially adjust salaries by June 2026.
Upcoming Wage Transparency Regulations
New regulations regarding wage transparency are set to take effect, imposing numerous obligations on employers, including submitting reports on issues such as the gender pay gap.
Work is underway to implement the so-called directive on transparency and equal pay (Directive 2023/970 of May 10, 2023, concerning the strengthening of the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency measures and enforcement mechanisms). The directive should be implemented by June 7, 2026, but this deadline is unlikely to be met.
Polish Implementation Legislation
The Polish implementing act will be titled “Act on Strengthening the Application of the Right to Equal Pay for Men and Women for Equal Work or Work of Equal Value” and has not yet been submitted to the Sejm (Parliament).
Employer Obligations: Pay Gap Reporting
Regardless of future changes to the draft law, certain obligations will be imposed on employers, primarily reporting on wage structures in the form of “pay gap reports.” This obligation will apply to employers employing at least 100 employees.
Failure to submit a pay gap report will result in a fine of up to 50,000 PLN.
Contents of the Pay Gap Report
The pay gap report must include information regarding the previous calendar year.
The law introduces new concepts, such as the gender pay gap and the median pay gap.
Defining the Gender Pay Gap and Median Pay Gap
The gender pay gap is the difference between the average wage of female employees and the average wage of male employees employed by the employer, expressed as a percentage of the average wage of male employees.
The median gender pay gap is the difference between the median wage of female employees and the median wage of male employees employed by the employer, expressed as a percentage of the median wage of male employees.
Employee Category and Work Value
An employee category refers to employees performing the same work or work of equal value, grouped by the employer in a non-arbitrary manner, based on non-discriminatory and objective, gender-neutral criteria, as outlined in Article 183c § 3 of the Labor Code.
Work of equal value requires comparable professional qualifications, confirmed by documents or experience, as well as comparable responsibility and effort.
Supplementary and Variable Components of Pay
Supplementary or variable components include all elements of remuneration under Article 183c § 2 of the Labor Code, excluding wages resulting from the employee’s personal classification, determined by an hourly or monthly rate, and other benefits received from the employer, directly or indirectly, in monetary or non-monetary form.
Remuneration encompasses all components, regardless of their name or nature, as well as other work-related benefits provided in monetary or non-monetary form.
Report Verification and Frequency
Employers must confirm the accuracy of the information in the report after consulting with existing trade unions; if multiple unions exist, consultation with all is required.
Employers must provide trade unions with access to the methodology used to prepare the pay gap report. The report’s accuracy is confirmed by the employee(s) managing the workplace on behalf of the employer.
Pay gap reports must be submitted by March 31st annually, with the first reports having special deadlines.
Data Recipient and Publication
Employers will submit the report to the monitoring authority, which is the body responsible for monitoring and supporting the implementation of equal treatment in employment regarding equal pay for men and women.
The monitoring authority will publish the information, no later than May 31st each year, on its website, providing access to data from the previous four years, if available.
With limited exceptions, almost all information in the report will be publicly available.
Information Sharing with PIP and Unions
Employers must provide the Chief Inspectorate of Labour (PIP) and trade unions with information on the gender pay gap within employee categories, based on hourly or monthly rates and supplementary/variable components, by May 31st each year.
This information must be stored for five years from the end of the calendar year for which the report was prepared. Employers must provide data from the previous four years upon request within 14 days.
Consequences of Identifying a Pay Gap
If the report reveals a gender pay gap of at least 5% in any employee category, and it is not justified by objective, gender-neutral criteria, the employer must take effective remedial action within six months of submitting the report.
Employees, PIP, trade unions, and the monitoring authority can request additional explanations regarding the report, including differences in pay based on gender. Employers must respond within 14 days, and if the pay gap is unjustified, take remedial action within eight months of providing the explanations.
Joint Pay Assessment – Principles
Employers must conduct a joint pay assessment in consultation with the trade union when certain conditions are met.
If no trade union exists, the employer will consult with employees selected by the workforce to represent their interests.
The assessment aims to identify unjustified pay differences and take corrective action.
Information from the assessment will be provided to employees and trade unions within 14 days, and may also be requested by PIP and the equality authority. Employers are obligated to implement the assessment’s findings.
