Rules for Equal Pay for Men and Women
As of April 2021, all companies with 100 or more employees must have an equal pay plan for women and men. This is set out in Royal Decree 902/2020 of October 13, which requires such companies to comply with the principle of transparency in remuneration, in order to obtain sufficient and meaningful information about remuneration.
These are the main points:
- A remuneration registry must be created, i.e. a file in which the salaries of the employees must appear broken down by sex. This record should be dynamic.
- The calculation of the staff must be made before the end of each semester of the year, and all contracts of an employment nature – regardless of their duration – must be calculated without exception, including executive personnel.
- The registration must be done after a remuneration audit that diagnoses the company’s retribution policyand the assessment of the jobs according to the collective agreements to ensure proper categories and professional groups. Only in this way will it comply with the obligation of equal remuneration for work of equal value. The audit will be valid for the duration of the equality plan of which it forms a part, unless it is determined in the plan.
- The remuneration must be broken down into basic salary, supplements and other salary payments.
- Workers have the right to access the salary registry through the company’s legal representative. If there is no legal representation, the registry may be accessed, but the data will not be provided in full, just with percentage differences that may exist between men and women.
- Workers also have the right to participate in the design of the salary registrythrough their legal representative and should be consulted.
- Wage discrimination is considered a very serious offense according to the Law of Infractions and Sanctions of Social Order, and can lead to fines between 6,251 and 178,500 euros.
This regulation is another step forward in our employment system and at KEPLER-KARST we have the required knowledge and extensive experience to ensure that your equality plans achieve the desired goal in a meaningful way, gaining the practical relevance that consolidates and improves the relationship between the company and its workers.