By Benjamin Kerner
BLOG OVERVIEW: Latvia published standalone draft legislation on March 26, 2026, to transpose the EU Pay Transparency Directive ahead of the June 7, 2026, deadline. The draft is stricter than or diverges from the Directive's baseline in several areas, including required pay disclosures in job advertisements (rather than later in the application process), the option to report a gross salary or hourly rate in place of a pay range, a narrower definition of "pay," a narrower set of job evaluation criteria, and a shifted June 1 annual reporting deadline. Timely transposition by the June 7, 2026 deadline remains feasible, though the draft is still subject to change.
On March 26, 2026, Latvia published draft legislation with the purpose of implementing the European Union Pay Transparency Directive (the Directive). Unlike some other European Union (EU) member states, this legislation is standalone rather than an amendment to existing labor laws and largely reflects the language of the Directive. However, it deviates from or lays out a stricter interpretation of the baseline requirements of the Directive in several key areas.
In reference to the pay transparency requirements outlined in Article 5 of the Directive, Latvia's draft currently requires employers to include pay information in job advertisements while the Directive requires employer to do so at a later step of the application process prior to the interview. In addition, Latvia's legislation currently requires employers to report either the specific gross pay amount (either monthly or annual) or the anticipated hourly rate of the pay range to applicants for employment. This is stricter than the option to report a pay range and could significantly alter the way in which Latvian job openings are advertised depending on the option chosen.
After the initial pay gap report deadline of June 7, 2027, Latvia is set to require an annual June 1 reporting deadline rather than retaining the June 7 timeframe from the Directive. Fines for violations of this law are capped for corporate employers at the current equivalent of €14,000 (the current cap is set at 2,800 "fine units," which is dependent on a conversion rate that is not fixed). There is also no additional fine framework for repeat offenses.
Furthermore, the job evaluation criteria used to determine work of equal value in Latvia's draft law references factors that are "essential" or "material" to a specific job or position, a slight deviation from the "relevant" factors called for under the Directive. This would represent a narrower framework that could lead to fewer facets of a given job being considered as part of an equal work evaluation in comparison to other member states.
Latvia's proposed legislation also has a narrower definition of "pay" than the Directive. Currently, Latvia is seeking to limit the definition of "pay" or "remuneration" to amounts paid on a regular basis. This includes wages, allowances, bonuses, and any other payments made in relation to work. This limitation may result in Latvian employers' pay reporting being narrower in scope than employers of other EU member states.
Finally, should this version of the draft be passed, Latvia will require that employer responses to employee requests for information regarding their wage be furnished within two months. This deviates from and simplifies the baseline set by the Directive, which requires this data to be provided within a "reasonable period of time, and in any event within two months…."
While Latvia released its draft legislation later than several other EU member states, its legislative system leaves open the possibility of passing and implementing the law by the June 7, 2026 deadline. However, timely implementation is not guaranteed.
Latvia's draft legislation remains subject to change and DCI will continue to monitor its progress. Sign up for DCI's EU Pay Transparency Navigator to stay on top of the latest in EU Pay.