Quick Answer
Directive (EU) 2023/970 introduces EU-wide pay transparency and gender pay gap reporting rules. Bulgaria must transpose the Directive by 7 June 2026. Reporting obligations will begin after transposition, with first reports expected in 2027 for larger employers under the EU baseline timeline.. As of February 2026, no implementing legislation has been adopted. Reporting obligations are not yet in force, but employers should prepare now. Once transposed, transparency rules will apply to all employers, while reporting applies to companies with 100+ employees.
Article Overview
What Directive (EU) 2023/970 Requires
Directive (EU) 2023/970 strengthens enforcement of the equal pay principle through structured transparency, reporting, and enforcement mechanisms. It adds proactive compliance duties to existing anti-discrimination frameworks across the EU.
Full legal text: Directive (EU) 2023/970
1. Pay Transparency Before Hiring
- Inform candidates of the initial pay level or pay range before the interview.
- Refrain from asking about salary history.
This prevents perpetuation of historical pay inequality.
2. Employee Right to Pay Information
- Their individual pay level.
- Average pay levels, broken down by gender, for employees performing the same work or work of equal value.
Employers must respond within two months, providing information in a clear and accessible manner. This concerns average data — not disclosure of individual colleagues’ salaries.
3. Gender Pay Gap Reporting
The Directive introduces structured reporting obligations for larger employers.
EU Baseline Timeline
| Number of Employees | Reporting Frequency | EU Baseline Timeline* |
|---|---|---|
| 250+ | Annually | First report due ~June 2027 (covering 2026 data) |
| 150–249 | Every 3 years | First report due ~June 2027 |
| 100–149 | Every 3 years | First report due ~June 2031 |
*Exact dates and phasing will depend on the Bulgarian transposition act. Member States may adjust implementation details.
Reporting must include:
- Mean and median gender pay gaps
- Mean and median bonus gaps
- Proportion of women and men receiving bonuses
- Gender distribution across pay quartiles
- Differences in complementary or variable components of pay
4. 5% Gap and Joint Pay Assessment
If a gender pay gap of 5% or more persists for at least six months and cannot be objectively justified by gender-neutral criteria, the employer must conduct a joint pay assessment with employee representatives and implement corrective measures.
5. Burden of Proof and Sanctions
If a worker establishes facts suggesting discrimination, the employer must prove no breach occurred. Failure to meet transparency obligations may strengthen the presumption against the employer.
Member States must introduce effective, proportionate, and dissuasive sanctions, including fines. The precise penalties will be determined by Bulgarian implementing legislation.
6. Objective, Gender-Neutral Pay Systems
- Pay-setting criteria must be objective and documented.
- Job evaluation systems must allow comparison of work of equal value.
Informal or undocumented compensation structures increase legal exposure.
Current Legal Framework in Bulgaria
Bulgaria already guarantees equal pay under:
- Art. 243 of the Labour Code
- Art. 14 of the Protection Against Discrimination Act
These provisions ensure equal remuneration for equal or equivalent work.
However, current Bulgarian law:
- Does not require structured gender pay gap reporting.
- Does not mandate pre-hire pay range disclosure.
- Does not provide formal comparative pay information rights.
- Does not impose the 5% joint pay assessment trigger.
The Directive therefore adds to — rather than replaces — existing Bulgarian equal-pay protections. Enforcement today remains complaint-based and reactive.
Has Bulgaria Implemented the Directive?
Directive (EU) 2023/970 must be transposed by 7 June 2026.
As of March 2026:
- Bulgaria has notified zero transposition measures in the EUR-Lex database.
- No draft or final implementing legislation has been published in the State Gazette.
- The Ministry of Labour and Social Policy has established a working group to prepare transposition.
- No draft bill has yet been released for public consultation.
Structured reporting obligations and transparency rules are therefore not yet in force.
Important: Which Obligations Apply to All Employers?
- Gender pay gap reporting applies to employers with 100+ employees.
- Pre-hire transparency, salary history ban, and employee information rights apply to all employers once transposed.
Reporting thresholds represent minimum EU standards. Bulgaria may extend scope in its national law.
What Bulgarian Employers Should Prepare For
Even before transposition, preparation is prudent.
1. Review Salary Structures
- Document objective pay-setting criteria.
- Review discretionary bonuses and allowances.
- Ensure job classifications support “work of equal value.”
2. Prepare Payroll Data Systems
- Segment employees by gender.
- Categorise roles consistently.
- Generate mean and median pay gaps.
- Distinguish base salary and variable components.
For payroll system alignment, see: Payroll in Bulgaria
3. Update Hiring Procedures
- Include salary ranges in job advertisements.
- Remove salary history questions.
- Train HR personnel on compliant interviewing.
See also: Hiring Employees in Bulgaria
4. Conduct Internal Risk Assessment
- Identify potential unexplained pay gaps.
- Document legitimate differentiation criteria.
- Prepare for joint pay assessment obligations.
5. Governance & ESG Alignment
Pay transparency increasingly interacts with governance and ESG frameworks.
See: ESG & Sustainability in Bulgaria
European Perspective: Transposition Across Member States
Directive (EU) 2023/970 applies across all EU Member States and must be transposed into national law by 7 June 2026. However, implementation approaches differ.
Some Member States are adjusting existing pay gap reporting regimes, while others are introducing entirely new systems. Enforcement structures and sanction mechanisms vary across jurisdictions.
For multinational groups operating across multiple EU countries:
- Reporting timelines may differ in practice.
- Enforcement intensity may vary.
- Internal job grading and compensation frameworks may require harmonisation at group level.
Companies operating in multiple jurisdictions should monitor transposition progress in each Member State and assess cross-border compliance readiness in a coordinated manner.
Through the Aliant+ network, member firms coordinate monitoring of regulatory developments across jurisdictions to support clients with multi-country operations.
Conclusion and Next Steps
Directive (EU) 2023/970 introduces structured pay transparency obligations across the European Union.
As of March 2026, Bulgaria has not yet transposed the Directive. However, transposition must occur by 7 June 2026, and the introduction of national legislation will activate new transparency and reporting duties for employers.
Organisations — particularly those with 100+ employees — should begin reviewing pay structures, payroll systems, hiring procedures, and documentation practices now. Employers of all sizes should prepare for upcoming transparency obligations once Bulgarian implementing law enters into force.
Early preparation reduces compliance risk, strengthens governance frameworks, and allows controlled internal adjustments rather than reactive corrections.
If your organisation employs staff in Bulgaria or operates across multiple EU jurisdictions, a structured compliance review can help assess readiness and identify potential exposure.
You may contact our team for a tailored assessment or book a discovery meeting to discuss next steps.
FAQ – Pay Transparancy
Does the Directive already apply in Bulgaria?
No. As of March 2026, Bulgaria has not transposed Directive 2023/970.
When will first reports be due?
Under the Directive baseline timeline:
- 250+ and 150–249 employee companies: first reports due around June 2027.
- 100–149 employee companies: first reports due around June 2031.
These dates assume timely transposition and may vary under Bulgarian legislation.
What if Bulgaria delays transposition?
If national legislation is delayed, reporting cannot be enforced domestically until implementing law is adopted. Employers should monitor official sources closely.
Does this apply to companies under 100 employees?
Reporting does not apply below 100 employees. However, transparency obligations will apply to all employers once implemented.
Can employees request colleagues’ salaries?
No. Employees may request average pay data by gender for comparable categories, not individual salary disclosure.
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or employment law advice. Specific situations require individual analysis under applicable Bulgarian and EU legislation.
Last reviewed: March 2026
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