Beneflo CEO Juris Zalāns explores the impact of the EU Pay Transparency Directive on employee benefits in his latest article for iBizness, published on 27 October 2026.
When we talk about equal pay, salary is often the first thing that comes to mind. But under the EU Pay Transparency Directive, employers will need to look at the bigger picture.
Bonuses, allowances, company cars, additional paid leave, meals, sports activities, eyewear compensation, and other employee benefits all contribute to total compensation. This means employers will need to account for more than base salary when assessing pay equality.
In his article, Juris explains what these changes mean for Latvian employers and why accurate employee benefits data will become increasingly important.
Although Latvia’s national legislation is still being developed, the first reporting cycle is expected to cover 2026 data. The directive also introduces requirements for addressing unjustified gender pay gaps of at least 5% within employee categories, subject to specific conditions.
The article examines the potential consequences of non-compliance, including fines of up to €14,000 for failing to submit required reports under Latvia’s proposed legislation.
The issue is particularly relevant in Latvia. According to Eurostat, the country’s unadjusted gender pay gap in 2024 stood at 13.9%, compared with the EU average of 11.1%. Among full-time employees, Latvia recorded the highest gap in the EU at 19.9%.
As pay transparency requirements approach, companies have an opportunity to review how they allocate, track, and evaluate employee benefits.
Read the full article (in Latvian) on iBizness.