(sth) – A law that entered into effect in December 2016 makes gender pay gaps in Luxembourg an infraction that can cost employers up to 50,000 euros.

Equal Rights Minister Lydia Mutsch and Labour Minister Nicolas Schmit on Wednesday presented a brochure and tool for companies that want to make sure they are in compliance with the new law.

The brochure is a collaboration of both ministries.

Even though gender equality is inscribed in the Grand Duchy's constitution, a 'règlement grand-ducal' prohibited gender pay gaps starting from 1974, and the government adopted a 'plan d'égalité des femmes et des hommes 2015-18' in 2014, a gender pay gap of approximately 8.6% remains to this day.

While the law -- which entered into effect in December 2016 -- is more commonly known for introducing a quota seeking to have balanced electoral lists for political elections, it also has important ramifications for the labour market.

Mutsch said: ''From now on, it will not be possible to refer to lack of awareness to justify gender pay gaps any more.

"On the contrary, by making gender pay gaps a criminal offence, employers will have to assume their responsibilities and identify the causes of this injustice and look for solutions for the problem.''

Gender pay gaps -- although prohibited by the 'règlement grand-ducale' from 1974 onwards -- were previously not subject to fines.

Based on the new law, fines from 251 euros to 25,000 euros can be issued to employers for every infraction.

In the case of a repeated infraction within two years, the fine can be doubled up to a maximum of 50,000 euros.

An infraction is given when a pay gap cannot be justified for objective reasons but is based on gender considerations.

The implementation and supervision of the law is taken on by the 'inspection du travail', under the authority of the labour minister.

The brochure presented on Wednesday introduces the new 'Logib-Lux' tool that companies can use to see if they are in compliance with the law.

Companies with more than 50 employees can use the tool and send in their information, which is then being evaluated by a company based in Hamburg.

The tool should help companies define their payment structures and identify causes for possible pay gaps.