The (very unnecessary) taboo of salary. What's up with pay transparency in Poland?

Would you apply for a job without knowing the salary?

Recently, we asked a smilar question on our social media accounts. Out of 55 responders, the resounding 95 percent agreed in a decisive equivalent of: “Thank you, but no, thank you.”

There is little doubt that in recent years there has been a growing demand for more open salary structures.

What is the EU Directive on Pay Transparency?

In response to the push for greater pay transparency, the European Union has introduced new regulations designed to ensure that employees have access to clear information about their earnings.

The year 2023 marks a significant step toward wage transparency. With the European Parliament approving the Pay Transparency Directive on 30^th of March, member states become obligated to incorporate it into their national legal systems within three years.

For those looking for a job, or wishing for a more comprehensive salary policy in their current employment, 2026 cannot come soon enough.

Understandably, the employers might feel a tad less enthusiastic about that date. After all, this directive will bring significant changes for employers.

What will the EU’s directive on Pay Transparency change?

The most important modifications for employers and employees alike include:

Salary range disclosure in job advertisements: Employers are required to include salary ranges in job advertisements and during recruitment processes. This measure is intended to provide job seekers with clear expectations and prevent wage discrimination from the outset.

Ban on asking about pay history: Employers cannot ask about a candidate's previous pay during past employment.

Transparency of pay: Employees can request information on their individual pay and the average pay levels, broken down by sex, for categories of workers performing the same or equivalent work. Employers must inform employees of this right annually. This aims to foster a culture of openness and trust.

Arguments for pay transparency

Proponents of pay transparency tend to argue that it offers several significant benefits:

Reducing wage disparities: Regular reporting and disclosure can pressure companies to address unjustified wage gaps. This can lead to a more equitable distribution of pay, reducing the likelihood of systemic wage inequality.

Promoting fairness and equality: By making pay information readily available, transparency can help identify and rectify wage disparities based on gender, race, or other discriminatory factors. This aligns with broader social goals of equality and non-discrimination.

Empowering employees: Knowledge of pay ranges and average salaries empowers employees to negotiate better wages and benefits. It provides a benchmark for their value in the labor market, fostering a sense of fairness and boosting morale.

Attracting talent: Transparent pay practices can enhance an employer's reputation, making them more attractive to potential employees. In a competitive labor market, this can be a significant advantage in recruiting top talent.

Arguments against pay transparency

Critics of pay transparency raise several concerns, though it’s worth noticing that they mostly seem to involve the employer’s perspective:

Privacy issues: Some argue that mandatory pay disclosure infringes on personal privacy. Both employers and employees may feel uncomfortable with widespread access to salary information, fearing it could lead to envy, resentment, or other negative workplace dynamics.

Administrative burden: For many companies, particularly smaller businesses, the requirements of the directive can pose a significant administrative burden. Collecting, analyzing, and reporting pay data can be time-consuming and costly.

Competitive disadvantages (for an employer): Some businesses fear that pay transparency could undermine their competitive position. If competitors gain access to salary information, they might poach talent by offering slightly higher wages, leading to a wage spiral that could be unsustainable for some firms.

Negative impact on workplace harmony: Transparency can sometimes lead to workplace tension. Knowing colleagues' salaries might breed dissatisfaction and conflict, particularly if employees perceive pay differences as unfair, even if they might be justified.

What should we do with the taboo of salary?

All in all, the topic of pay transparency is a divisive one.

While employers might have reasons for wanting to keep their salary structure more clandestine, the proponents of payment transparency have equally, if not more, compelling arguments. And in 2026, when the EU directive will come to life in EU countries, they will also have the regulations on their side.

In the end, while businesses will need to make additional efforts to adapt to the new rulings, they stand to benefit from them, too. They stand to gain more equality in the workforce, and while sports cards and fruit Thursdays are all well and good, the information about money will attract more talent to the company than all the apples in the world ever could.

Sources:

Official Journal of the EU (OJEU), “Directive (EU) 2023/970 Of The European Parliament And Of The Council of 10 May 2023”