Latvia: Draft legislation to transpose the EU Pay Transparency Directive

A draft bill transposing the EU Pay Transparency Directive was published for public consultation by the Ministry of Welfare. The draft is broadly in line with the directive and, following the consultation process, will be taken to the Cabinet of Ministers before being submitted to Parliament. The transposition deadline is June 7, 2026.

New requirements would include

• Pay transparency during recruitment: Employers would be required to provide information on the initial remuneration in the job postings and would be prohibited from inquiring into job applicants’ prior salary histories. Companies would also be required to inform candidates about provisions of applicable collective bargaining agreements (if any) on remuneration, before the start of employment
• Transparency on pay setting and progression: Employers would be required to provide employees with easily accessible information on the objective and gender-neutral criteria used to determine pay levels and pay progression. Companies with fewer than 50 employees would not be required to make information on the criteria for pay progression available but could do so voluntarily
• Right to information: Employees would be entitled to request information on individual pay levels and on average pay levels, broken down by gender, for categories of workers performing the same work or work of equal value. The information would need to be provided within a reasonable time, and in any case no later than two months from the date of the request. Employers would also be required to inform employees annually of their right to this information and how to obtain it. Employers could not prohibit employees from disclosing their salary for the purpose of enforcing equal pay
• Pay gap reporting: From June 7, 2027, companies with 250 or more employees would be required to report gender-based pay gaps for the entity and each category of worker annually, while employers with 150 to 249 employees would report as from the same date, every three years. Employers with 100 to 149 employees would also have to report every three years but from June 7, 2031. Subsequent reports would be required by June 1 in the relevant year. Reporting would be voluntary for companies with fewer than 100 employees. Regulations outlining the procedure to follow would be set by the Cabinet. Where reports reveal unjustified pay gaps of 5% or more that are not corrected within six months of reporting, employers would be required to conduct a joint pay assessment in cooperation with employee representatives

Latvia’s unadjusted gender pay gap was 13.9% in 2024, compared with the EU average of 11.1% (Eurostat data). Employers should monitor the development of the draft bill, which may be amended following the public consultation, while preparing to comply with the new requirements.