The EU Pay Transparency Directive mandates that Member States incorporate its provisions into national law by 7th of June, 2026. Latvia intends to meet the Directive's minimum requirements through a dedicated regulatory act. Officials are currently drafting this framework, alongside complementary measures to ensure practical implementation.
The Directive introduces key obligations for employers, including:
- Establishing an objective, transparent pay system.
- Providing employees with access to pay-related information, including criteria for determining pay levels and adjustments.
- Reporting pay differences to state authorities and employees.
Pay transparency extends to recruitment: job seekers must receive details on initial pay or pay ranges for the role, based on objective, gender-neutral criteria.
Employers must also disclose details of their remuneration systems. Employees can request written information on their individual pay, plus average pay by gender for comparable roles involving the same or equivalent work.
This transposition will reshape compensation practices across Latvia - we will post updates of the draft act. In case of any questions, feel free to contact Baker Tilly Baltics Corporate Advisor, Ivo Rudzītis.
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