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Gender Pay Gap is an indicator expressing the difference between the remuneration of men and women. According to the European Commission data, gender pay gap in Croatia is 11,2%.
To an increasing extent, equal pay is becoming a hot topic in Croatia and it should be a priority for Croatian businesses. Companies with a well-set wage policy are given a competitive edge not only in the area of employer branding, but also within its business as a whole. Research proves that promoting equality and employing women in management positions significantly contributes to better financial results and better corporate governance.
Demonstrating your commitment to equal pay for men and women for equal work or work of equal value is no longer just about strengthening your company's position in the labour market. If your company has at least 100 employees, demonstrating fairness is now a legal obligation.
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The EU Pay Transparency Directive entered into force on 6 June 2023. The Directive sets out pay transparency requirements and enforcement mechanisms to strengthen the application of the principle of equal pay for equal work or work of similar value between men and women, as well as gender pay gap reporting obligations for companies with more than 100 employees (both public and private).
EU member states will have three years to transpose the directive into national legislation.
One way of demonstrating equal pay for male and female employees is via the internationally recognised EQUAL-SALARY certification.
Internationally recognised certification awarded by the independent Swiss EQUAL-SALARY Foundation to companies that demonstrate compliance with prescribed conditions and criteria in the area of equal pay.
The methodology used to verify eligibility for certification has been developed by the University of Geneva, which is recognised by the European Commission and has been accepted as evidence in several pay discrimination lawsuits.
By getting certified, your organisation becomes a part of a solution, builds employee trust and commitment, attracts talent, ensure sustainability and builds reputation.
It demonstrates a commitment to fair and non-discriminatory remuneration.
It leads to an inclusive, respected corporate culture
It provides proof that your company provides equal employment opportunities for women and men.
It earns you a place among the best employers that don’t just talk about their commitment to equality, but can also demonstrate it.
Company employee data is provided to the EQUAL-SALARY Foundation for analysis through a secured IT platform. All data is made anonymous prior to analysis and compensation data is destroyed after the audit report has been transmitted. The EQUAL-SALARY statistical regression model analyses the wage difference; this difference needs to be inferior or equal to 5% and the regression strength (R²) must exceed or equal 90% in order to proceed to Step 2. A list of individual employee cases falling outside these criteria is generated, enabling the company to put in place a specific action plan.
PwC’s EQUAL-SALARY team carries out an on-site visit to assess:
Depending on the result of PwC’s visit, the EQUAL-SALARY Foundation grants the EQUAL-SALARY certificate. This gives the company the right to use the EQUAL-SALARY label. The EQUAL-SALARY label can be used on all company communications, such as the website, recruitment ads, letterheads and annual reports.
The EQUAL-SALARY Certification is valid for three years. During this period, the certified company undergoes two monitoring visits to demonstrate its ongoing commitment and fulfilment of actions to apply a policy of fair, non-discriminatory treatment.