Portugal has missed the June 7 deadline to transpose a landmark European Union directive designed to close the gender pay gap, drawing sharp criticism from the nation's largest trade unions. The Portugal Ministry of Labour has yet to implement EU Directive 2023/970, which mandates sweeping pay transparency reforms across all member states, leaving employers, workers, and enforcement agencies in a legal grey zone.
Despite assurances that the legislation is being "finalized" and will enter the parliamentary circuit "very soon," the government's delay marks a significant regulatory lapse. The directive was intended to arm workers with concrete rights—including salary band disclosure before job interviews and the prohibition of questions about previous earnings—starting with the June 7 deadline now passed.
Why This Matters
• Women in Portugal earn 14.4% less than men on average, equivalent to roughly €205 per month in net salary, according to the Portuguese National Statistics Institute (INE).
• Employers can still legally ask about your salary history until national legislation is enacted, despite the EU directive entering force on June 7.
• Banks and large firms are under pressure from unions to voluntarily implement the directive's principles immediately, even without Portuguese law on the books.
• Fines and infringement proceedings from the European Commission could follow if Portugal's delay extends much longer.
Historic Frustration Resurfaces
The Confederation of Portuguese Workers (CGTP), the country's largest union federation, issued a joint statement with the Commission for Equality between Women and Men accusing the government of operating at "maximum speed to change labour laws" while applying "the handbrake to combat pay discrimination." The union drew a pointed historical parallel: in June 1968, women workers at Ford's Portuguese plant went on strike demanding equal pay after discovering male colleagues earned 15% more for identical work. Fifty-eight years later, the Portugal Government has failed to meet the EU deadline designed to address the same issue.
Current INE data show women's average net monthly earnings trail men's by 14.4%—a figure that climbs sharply in senior roles. Among top-tier managers, the pay gap reaches 25.4%, or €729 per month, while middle management sees a 15.6% differential. Nearly 59% of female workers in Portugal earn €1,000 or less per month, compared to 53.5% of men, and one in five women receives only the national minimum wage of €870.
What the Directive Requires
EU Directive 2023/970 imposes a detailed framework designed to combat pay discrimination and increase transparency. Under the new rules, which are now in effect across the EU as of June 7, employers must:
• Disclose salary information in job postings or before the first interview, enabling candidates to understand compensation expectations.
• Stop asking candidates about prior earnings, shifting the focus to future expectations rather than salary history.
• Provide detailed pay information to current employees upon request, including gender-disaggregated average salaries for workers performing equal or equivalent roles.
• Base all pay decisions on objective, gender-neutral criteria such as skills, effort, responsibility, and working conditions.
• Justify any unexplained pay differences based on objective factors rather than protected characteristics like gender.
The directive also shifts the burden of proof in discrimination disputes: employers must demonstrate they did not discriminate, rather than workers having to prove bias.
Unions Demand Immediate Compliance
Mais Sindicato, a union affiliated with the General Union of Workers (UGT) and representing banking sector employees, has taken a more aggressive stance. In a statement released after the June 7 deadline, the union argued that employers—including banks—should apply the directive's provisions directly, even in the absence of Portuguese implementing legislation. "Workers must not bear the consequences of the state's omission," the union declared, urging the Labour Conditions Authority (ACT) and the Commission for Equality at Work and Employment (CITE) to begin enforcement immediately based on EU law.
Mais Sindicato emphasized that transparency means ensuring clear criteria, adequate information, and effective mechanisms to detect and correct discriminatory pay practices. The union called for zero tolerance toward companies using the government's delay as an excuse to maintain "opaque practices" or refuse information requests.
What This Means for Residents
If you are currently job hunting in Portugal, you are entitled under EU law to request salary information before accepting a role, though enforcement mechanisms remain unclear until national legislation passes. Legal experts suggest that candidates can cite the directive directly in negotiations, particularly with multinational firms or companies operating in multiple EU jurisdictions that may already comply elsewhere.
For current employees, the situation is more ambiguous. While the directive's provisions are binding on member states as of June 7, individual workers may struggle to enforce rights without domestic legal backing. The ACT has indicated it will begin inspections based on the directive's requirements, even before official transposition, meaning some companies may face penalties for non-compliance. However, formal complaint mechanisms and appeal processes remain tied to Portuguese law, which does not yet incorporate the new standards.
Existing Portuguese legislation, including Law 60/2018, already requires companies with 50+ employees to maintain transparent pay policies and contribute to annual equality reports. The EU directive significantly expands these obligations and introduces explicit worker rights. The CITE, whose role in oversight is reinforced by recent government directives, will serve as a primary avenue for complaints and enforcement once transposition is complete.
Crucially, the directive protects workers' right to discuss their pay openly. Employment contracts that include salary confidentiality clauses will be unenforceable under the new regime, allowing colleagues to compare compensation and identify potential discrimination.
Regional Context and Enforcement
Portugal's delay is not unique—the European Trade Union Confederation (CES) estimates most member states will miss the June 7 deadline. However, the European Commission has signaled it will launch infringement proceedings against laggards, with potential financial penalties escalating over time.
Labour advocates argue the government's inaction undermines Portugal's stated commitment to gender equality, particularly given that Portuguese salaries already lag the EU average by 42%. Women earning 14.4% less than men in an economy where wages are structurally depressed face compounded disadvantage.
What Happens Next
The Portugal Ministry of Labour has not responded to repeated queries about the transposition timeline. Political observers note the government has been focused on broader labour code reforms in recent months, which unions characterize as prioritizing employer flexibility over worker protections. The pay transparency directive, by contrast, imposes clear compliance costs on businesses, including data systems, audits, and potential remediation expenses.
Legal scholars suggest that even without formal transposition, Portugal courts may begin applying the directive's principles in discrimination cases, particularly given EU law's supremacy over national legislation in areas of Union competence. Workers who believe they are experiencing pay discrimination based on gender could file complaints with the CITE or pursue civil litigation, arguing the directive creates direct rights enforceable against employers.
For now, the standoff leaves workers with moral authority but limited practical recourse, employers uncertain about compliance obligations, and enforcement agencies awaiting legislative clarity. The contradiction—that a transparency law remains opaque in its application—is not lost on the unions marking nearly six decades since Ford workers demanded the same fundamental principle: equal pay for equal work.
