Christodoulou urges Cyprus businesses to see pay transparency as an opportunity

Nicosia, Cyprus. Cyprus businesses should regard forthcoming pay transparency rules as a commercial opportunity rather than an administrative burden, Gender Equality Commissioner Josie Christodoulou said on Wednesday.

She said greater transparency in salary-setting could help address gender pay differences while improving employee satisfaction, talent retention and competitiveness.

Conference remarks

Speaking at a conference on pay transparency and job evaluation at the University of Cyprus, Christodoulou said openness about how salaries are determined would be central to tackling differences in pay between women and men.

“Businesses should not view pay transparency as an administrative ‘burden’, but as an opportunity,” she said, adding that equality across an organisation could strengthen profitability and competitiveness.

Christodoulou said transparency was particularly important because pay inequality could not be addressed while the factors behind it remained hidden.

Legislation preparation

The issue is gaining practical importance for employers as the government prepares legislation to align Cyprus with the EU Pay Transparency Directive.

Cyprus missed the June 7, 2026 deadline set by the directive for member states to transpose the rules into national law. Labour Minister Marinos Mousiouttas said earlier this month that the bill is expected to go before the Council of Ministers in September before being submitted to parliament.

The draft law has undergone public consultation and discussions with employers’ organisations and trade unions. It has also been sent to the legal service for review.

Requirements for employers

Under the EU rules, workers will have greater access to information on how their pay is determined, while employers will be required to apply objective, gender-neutral criteria when setting pay and determining progression.

Job applicants will be entitled to information on the initial salary or salary range for a post. Employers will not be permitted to ask candidates about their previous pay.

Employers with at least 250 workers will be required to report annually on gender pay differences. Companies employing between 150 and 249 people will report every three years from 2027, while businesses with 100 to 149 workers will be included in the reporting requirements from 2031.