The Principle of Equal Pay for Men and Women for Equal Work or Work of Equal Value

In October 2021, the Government of the Republic of Serbia adopted the Gender Equality Strategy for the period 2021 to 2030 (“the Strategy”).

The Strategy states, among other things, that the gender pay gap in 2018 was 8.8%, meaning that women were paid 8.8% less than men in the Republic of Serbia. When the data is analyzed by level of education, the gap is much wider—for women with no education, incomplete primary education, or only primary education, the gap amounts to 21.2%.

When broken down by occupation, the largest pay gaps are found in the following professions: craftspeople (23.8%), professionals and artists (19%), engineers, associates, and technicians (19.3%), elementary occupations (15.45%). Analyzed by age group, the deepest pay gap is seen among women aged 30–49. Even among young people (aged 15–29), a pay gap of 4.6% exists between women and men.

The adopted Strategy is based on international law as well as national regulations that cover the entities and areas addressed by the Strategy, focusing on eliminating the gender gap and achieving gender equality as a precondition and driver of societal development.

Considering Serbia’s EU accession process, the country has a commitment to align its national legislation with EU-level rules. Thus, the latest EU Directive from May 10, 2023 is of significance:
Directive on strengthening the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency and enforcement mechanisms.
This Directive must be implemented into the national laws of EU member states by June 7, 2026, at which point the rules it prescribes will take effect.

This EU Directive sets minimum rules for strengthening:

  • Respect for the principle of equal pay for men and women for equal work or work of equal value;
  • The prohibition of any direct or indirect pay discrimination based on gender;
  • Pay transparency and stronger enforcement of the right to equal pay.

The Directive applies to employers in both the public and private sectors, as well as to all employees with an employment contract or relationship, as defined by law, collective agreements, and/or practices in force in each member state, in accordance with relevant case law of the Court of Justice of the European Union.

Equal Pay for Equal Work or Work of Equal Value

Employers must establish pay structures that ensure equal pay for equal work or work of equal value, and eliminate any pay discrimination based on gender.

Pay Transparency Before Hiring

Job applicants have the right to receive information from potential employers about the starting salary or salary range for the job they are applying for. This must be based on objective, gender-neutral criteria, and if applicable, relevant provisions of collective agreements used by the employer.

Employers must ensure that job advertisements and job titles are gender-neutral, and that recruitment processes are non-discriminatory, so as to safeguard the right to equal pay.

Right to Compensation

EU member states must ensure that any worker who has suffered harm due to a violation of any right or obligation related to the principle of equal pay has the right to claim and receive full compensation or restitution, as determined by the member state.

Such compensation must place the affected worker in the same position they would have been in had there been no discrimination or violation of the principle of equal pay.

EU member states must ensure that compensation includes full back pay and any associated bonuses or payments, compensation for missed opportunities, non-material damages and damages caused by other relevant factors, which may include intersectional discrimination, as well as interest in delayed payments.

Reversal of the Burden of Proof

EU member states must take appropriate measures to ensure that, in judicial systems, when workers present facts suggesting discrimination, the burden of proof shifts to the employer to prove that no direct or indirect pay discrimination occurred.

If an employer fails to fulfill transparency obligations, the burden of proof in cases of alleged discrimination also shifts to the employer.

Statute of Limitations

EU member states must ensure that national rules on statutes of limitations for filing equal pay claims define when the time limit starts, how long it lasts, and the conditions under which it may be suspended or interrupted.

The limitation period must not begin before the claimant becomes aware or can reasonably be expected to become aware of the violation. Member states may also decide that the period does not begin until the violation ceases or until the employment relationship ends. The limitation period must not be shorter than three years.

Member states must ensure that the limitation period is suspended or interrupted once the claimant takes any relevant legal action—such as notifying the employer or filing a legal claim, either directly or via a workers’ representative, labor inspectorate, or equality body.Employer Data Obligations

EU member states must ensure that employers provide data regarding pay differentials based on job type and gender, supplementary and variable pay components, the proportion of men and women in each pay grade, any other relevant data requested by member states.Conclusion

Although Serbia is still on an uncertain path toward EU membership, and the Directive is not yet binding for Serbia, the adoption of the Strategy and the setting of clear goals demonstrate a commitment to progress and to implementing key changes in the area of fundamental human rights and social justice, where everyone has the right to equal treatment.

Accordingly, the Strategy aims to move away from sectoral policies and instead focuses on neglected areas such as environmental protection, climate change, property access, and systematic recognition of vulnerable groups.

By implementing this Strategy, the goal is to build a culture of gender equality and overcome gender stereotypes in all areas of life.

Reducing the gender gap in the economy and improving the economic status of women is directly linked to the Strategy’s goals, as well as to the rules expected to be applied at the EU level in the near future.

The Republic of Serbia has recognized the existing gender gap, visible through the unequal position of women and men in the labor market, differences in salaries, pensions, and other income, access to resources for entrepreneurial activities, differences in property ownership, the presence of many especially vulnerable groups (rural women, single mothers, Roma women, women with disabilities, etc.).

Eliminating the gender gap and achieving gender equality is a prerequisite for societal development and for improving the daily lives of citizens of the Republic of Serbia. It is also a step toward alignment with EU regulations and the EU accession process. The vision is of a gender-equal country where women and men are equal and have equal rights and opportunities for personal and professional development, contributing equally to the development and betterment of all aspects of society.

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