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Ensuring Fair Pay: The New EU Directive on Pay Transparency

Ewelina Jaworska-Bien

< 1 Min Read

This directive, which must be complied with by 2026, will have significant implications for businesses operating within the EU.

The European Union has introduced a new directive aimed at reducing the gender pay gap and promoting pay transparency across all member states. This directive, which must be complied with by 2026, will have significant implications for businesses operating within the EU.

Key Points to Note

  • Salary Information During Recruitment: Employers will be required to provide clear salary information during the recruitment process. This includes disclosing the initial pay level or range for the position.
  • Employee Access to Pay Information: Employees will have the right to access information on their pay and the average pay levels, broken down by gender, for categories of employees doing the same work or work of equal value.
  • Reporting on Pay Differences: Companies will need to report on pay differences between male and female employees. This transparency is aimed at identifying and addressing any unjustified pay disparities.
  • Organisational and Financial Effort: Businesses will need to invest in adjusting salaries where necessary to close the gender pay gap. This may involve significant organisational and financial effort, particularly for companies with large disparities.
  • Compliance Deadline: The directive mandates that all businesses must comply by 2026, giving them a few years to make the necessary adjustments and ensure they meet the new requirements.

The new EU Directive on Pay Transparency is a significant step towards achieving gender pay equality across Europe. Businesses will need to take proactive measures to comply with the directive, ensuring fair and transparent pay practices. For more information or assistance with compliance, please contact our team of experts.

Ewelina Jaworska-Bien

Group Practice Leader
Health & Benefits

T +48 504 178 064

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