Fast read | Pay Transparency Directive in Romania: key implications ahead of the law’s publication

The Directive establishes minimum rules on pay transparency and introduces mechanisms designed to ensure compliance with the principle of “equal pay for equal work or work of equal value.”

In Romania, the first draft legislation aimed at transposing the Directive was published by the Ministry of Labour on 30 March 2026. As the legislative process progresses, organisations are gaining a clearer understanding of what compliance with the new requirements will entail in practice.

Although Romania continues to rank among the European countries with the lowest gender pay gap, estimated by Eurostat at 3.8%, the reality within many organisations, particularly in the private sector, is far more complex.

For many companies, the challenge lies not only in reporting pay gaps, but, more importantly, in the fact that they do not yet have sufficiently well-defined and documented pay systems in place. In the absence of objective criteria, consistent practices and effective mechanisms for monitoring internal pay equity, compliance with the new requirements becomes significantly more difficult.

Scope

The draft legislation transposing the Directive into Romanian law provides that the new rules will apply to all workers in both the public and private sectors, including civil servants and military personnel.

1. Key authorities and their role in implementing the Directive

• National Agency for Equal Opportunities between Women and Men (ANES)

ANES will play a central role in monitoring compliance with pay transparency legislation. The agency will collect and centralise gender pay gap reports submitted by employers, request additional clarifications where necessary and provide aggregated data on compliance levels to the European Commission. ANES will also develop methodologies and tools for pay assessment and provide technical support to employers and social partners.

• National Council for Combating Discrimination (CNCD)

CNCD will be responsible for investigating and resolving cases of pay discrimination based on sex, including situations where pay differences cannot be justified by objective criteria. The Council may request information on pay disparities, broken down by categories of workers. It may also intervene following individual or institutional complaints and provide support to affected individuals.

• Labour Inspectorate (ITM)

The Labour Inspectorate will be responsible for verifying compliance with pay transparency obligations and with any corrective measures adopted by employers. In cases of non-compliance, the Inspectorate may impose administrative sanctions. It will also be entitled to request documentation during inspections and will monitor the implementation of remedial actions.

2. Employees’ rights

• The right to request information about their own pay and the average pay levels for comparable roles, broken down by gender.
• The right to receive such information within a maximum of 30 working days from the date of the request.
• The right to disclose information about their own remuneration, without being restricted by pay confidentiality clauses.
• The right to full compensation where the principle of equal pay has been violated.
• The right to protection against any form of retaliation or adverse treatment resulting from requesting information or raising concerns regarding pay equity.

3. Employers’ obligations

• Provide, in writing, information on the salary or salary range associated with a position before the interview stage and refrain from requesting candidates’ salary history.
• Draft recruitment advertisements in a gender-neutral manner.
• Inform employees annually, by the end of the first quarter, about their rights related to pay transparency.
• Provide, upon request, information on pay levels and the criteria used to determine remuneration within a maximum of 30 working days.
• Assess and remedy unjustified pay differences between women and men within 90 working days, with the possibility of extending this period to up to six months in justified cases.
• Implement pay structures and job evaluation systems based on objective, transparent, and gender-neutral criteria.
• Make available to employees the criteria used to determine and progress remuneration, subject to certain exceptions applicable to smaller employers.
• Engage trade unions or employee representatives in defining remuneration criteria and evaluating the value of work by granting access to relevant methodologies and information, responding to requests for clarification, and cooperating in the assessment of remuneration practices, the correction of any identified inequities, and the verification of the accuracy of reported data.

4. Reporting pay gaps under the Directive

Reporting obligations are among the most significant requirements introduced by the Pay Transparency Directive and have been fully incorporated into the Romanian draft legislation.

Employers will be required to measure, monitor, and report a range of indicators designed to assess pay equity within their organisations. These include:

• Gender pay gaps between women and men.
• Differences in bonuses and other variable pay components.
• The distribution of female and male employees across pay bands.
• Pay differences for comparable roles or for work of equal value.

The reporting schedule set out in the Romanian draft legislation is aligned with the timeline established under the EU Pay Transparency Directive:

• Employers with more than 250 employees will be required to report annually, starting from 7 June 2027.
• Employers with 150-249 employees will be required to report every three years, starting from 7 June 2027.
• Employers with 100-149 employees will be required to report every three years, starting from 7 June 2031.
• Employers with fewer than 100 employees will not be subject to mandatory reporting requirements; however, regular internal monitoring of pay equity remains advisable as a matter of good governance and risk management.

Where a gender pay gap exceeding 5% is identified and cannot be justified by objective and gender-neutral criteria, employers will be required to take corrective action within the timeframes specified by law.

5. Consequences of non-compliance with Pay Transparency obligations

The draft legislation establishes an administrative sanctions regime for employers that fail to comply with their pay transparency obligations. Sanctionable breaches include:

• Failing to inform candidates about the remuneration level or salary range associated with a position.
• Requesting candidates’ salary history during the recruitment process.
• Failing to provide access to remuneration criteria and pay-setting mechanisms.
• Refusing to provide information that employees are entitled to receive under the legislation.
• Failing to comply with reporting obligations.
• Failing to carry out a joint pay assessment where such an assessment is legally required.

These infringements may result in fines ranging from three to five gross national minimum wages. In cases of repeated non-compliance, the penalties increase to five to ten gross national minimum wages, with repeated breaches being treated as an aggravating circumstance.

The value of the fines is calculated by reference to the gross national minimum wage in force at the time the sanction is imposed.

6. What should employers do to prepare for compliance with the Directive?

Experience from pay transparency readiness projects shows that compliance involves far more than updating internal policies. It requires organisations to reassess how roles are evaluated, how salaries are determined, and how remuneration decisions are justified and documented. For many employers, such a process can take several months, making early preparation a significant advantage. Proactive action can help reduce both compliance risks and the operational pressure associated with implementing the new requirements within a limited timeframe.

Preparation for the new requirements can be structured around several key steps:

Readiness assessment

Organisations should begin with a realistic assessment of their current position, including the structure of their remuneration framework, the availability and quality of relevant data and the maturity of their governance mechanisms. Without this foundation, any compliance initiative risks becoming fragmented and ineffective.

Identifying equal work and work of equal value and aligning salary structures

Before conducting any pay gap analysis, organisations should identify groups of roles that constitute equal work or work of equal value, based on an objective and gender-neutral job evaluation methodology. These role groupings provide the basis for establishing equitable salary structures, enable meaningful pay comparisons and support the organisation’s ability to demonstrate compliance with the Directive’s requirements.

Calculating pay gaps and supporting remedial actions

Not all pay differences necessarily represent a compliance issue. What is essential is that organisations can demonstrate, through clear documentation and objective criteria, the reasons behind any pay disparities. Where differences cannot be justified, appropriate corrective measures should be developed and implemented.

Reviewing internal policies

Internal policies, particularly those relating to remuneration, recruitment, promotion and salary progression, should be reviewed and aligned with the principles of transparency, fairness and compliance. Consistency between documented policies and actual organisational practices will become increasingly important.

Developing a communication strategy

Transparency is not solely about providing access to information; it is also about ensuring that information is communicated clearly and effectively. Organisations should be prepared to explain the principles, processes and criteria underpinning remuneration decisions in a way that strengthens employee trust and understanding.

Training managers

Managers play a critical role in embedding these principles throughout the organisation. As discussions regarding remuneration and career progression become more frequent, managers must understand the new requirements and be equipped with the tools and knowledge necessary to communicate pay-related decisions in a consistent, objective and transparent manner.

Given the high level of detail already included in the draft legislation currently under parliamentary review, organisations have sufficient guidance to begin advancing their compliance efforts. Taking action early can help reduce compliance risks and enable a more controlled and efficient implementation process. The publication of the final law should not mark the beginning of preparation activities, but rather the point at which measures already developed are validated and finalised.

Our team is only a phone call or email away and would be pleased to support you with any questions or challenges you may encounter throughout your pay transparency journey.