Spain, Portugal Propose Stricter EU Pay Transparency Rules
Draft laws in Spain and Portugal would implement the EU Pay Transparency Directive with stricter rules, including extending reporting obligations to employers with as few as 50 workers.
Spain and Portugal have published draft legislation to transpose the EU Pay Transparency Directive into their national laws, in some cases proposing stricter requirements than the directive mandates. Both countries plan to extend mandatory pay-gap reporting to employers with 50 or more workers, a significantly lower threshold than the EU's 100-employee baseline.
Counsel for multinational employers should note this "gold-plating." The Spanish draft, for instance, would require employers to implement corrective measures for unjustified pay disparities within six months of a report identifying them. The Portuguese draft introduces a powerful presumption that any dismissal or disciplinary action within three years of an equal-pay complaint is abusive, placing a heavy burden on the employer to prove otherwise.
While the bills are still in their respective legislative processes and subject to change, employers with operations in Spain and Portugal should begin assessing current pay structures and data-collection practices to anticipate the heightened compliance and enforcement landscape. The first reports for larger employers could be due as early as July 2027.