Salary Transparency: What Changes Are Coming in Portugal?

The transposition of the European Pay Transparency Directive into Portuguese law is beginning to take shape and could significantly change recruitment practices, remuneration-setting processes and the management of pay equality within companies.

The draft bill published by the Portuguese Government introduces new rules on recruitment, remuneration policies, employees’ access to salary information, and the reporting of pay disparities. The text may still be amended throughout the legislative process.

What is at stake?

The European Pay Transparency Directive aims to strengthen equal pay between men and women and increase transparency around the criteria used by companies to determine salaries.

For organisations, this represents a significant shift: pay policy is no longer solely an internal matter and will require greater transparency, objective criteria and the ability to demonstrate how remuneration is determined.

FAQ: Pay Transparency in Portugal

1. Is the Pay Transparency Directive already in force in Portugal?

The European Directive establishes obligations that must be transposed into national legislation. In Portugal, the legislative process for its transposition is still underway, meaning that the draft bill published may still be subject to changes.

2. What will change for companies?

The main areas of impact include recruitment, salary-setting criteria, employees’ access to information, the identification of pay disparities and reporting. The specific obligations will depend on the Portuguese legislation that is ultimately approved.

3. What can a company do now to prepare?

Companies can start by analysing their pay structure, mapping roles of equal or comparable value, reviewing remuneration and progression criteria, assessing recruitment processes, and ensuring that salary data is organised and auditable.

Find out more about the Pay Transparency Directive and the changes envisaged in the full article: