Client:
Institute of Solid State Physics, University of Latvia
Industry:
Public scientific sector
Our role:
People and organisation transformation services
Background and context
Equal pay and pay transparency requirements are becoming a mandatory standard across the European Union, so organisations in Latvia are advised to review and adjust their internal processes and documents in a timely manner.
PwC, on behalf of the client, reviewed Institute of Solid State Physics, University of Latvia (ISSP UL) internal regulations that govern the principles for forming and developing remuneration for different staff categories. The primary objective was to assess the compliance of ISSP UL’s remuneration system with the requirements of Directive (EU) 2023/970, which Latvia must implement by June 2026.
The Directive obliges employers to provide, upon employee request, information available in internal documentation regarding individual remuneration and average pay levels within the relevant employee category, broken down by gender. In addition, employers must ensure that all remuneration elements (including bonuses, allowances, benefits etc.) are determined using equal, objective, gender-neutral and documented criteria.
Key project activities
PwC Latvia’s Workforce team was tasked to evaluate transparency and gender equality in ISSP UL remuneration system in line with the requirements of Directive. This was conducted by reviewing ISSP UL’s internal documentation and practices, and providing recommendations. The scope included:
Analysis of internal regulations, focusing on remuneration structure, criteria, and their application across ISSP UL’s staff categories in the context of Directive’s requirements.
In-depth interviews with ISSP UL representatives to compare documented policies with actual implementation practices.
Preparation of an informative report outlining findings on the alignment of ISSP UL’s remuneration system with the Directive.
Development of a sample internal HR policy, aligned with Articles 6, 7, and 8 of the Directive.
Presentation of the report at the Institute’s Scientific Council meeting.
Result
As a result of the project, ISSP UL received a structured, document-based assessment of its remuneration practices across all staff categories, along with practical recommendations tailored to the organisation’s operational specifics. These included suggestions for bonus allocation procedures, bonus fund formation, and providing grounds for linking evaluation to remuneration, based on the best practices from both private and public sector organisations, including international ones.
ISSP UL also received a sample internal regulation that can be added to existing policies with legally correct provisions to ensure compliance with the Directive.
*DIRECTIVE (EU) 2023/970 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms.
