EU Pay Transparency Directive

Q: Do we need to show pay ranges in job ads?

Yes—candidates must receive information about the initial pay level or range for advertised roles, either in the ad or before the first interview, and you may not ask about a candidate’s salary history.

Q: What information can workers request?

Employees can request written information on their individual pay and the average pay levels, broken down by sex, for workers doing the same work or work of equal value.

The EU Pay Transparency Directive is reshaping pay equity across Europe. By 2026, all member states must adopt the new rules — requiring employers to report gender pay gaps, disclose salary information, and take action on pay equity. We help you prepare, comply, and stay ahead.

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Are You Ready for the EU Pay Transparency Directive?

The countdown to compliance has started. All EU member states must have implemented the directive by June 7, 2026

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Fair pay is no longer optional. Transparency will be the standard.

What is the EU Pay Transparency Directive?

The Directive, which became effective in 2023, is designed to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women. It introduces measures for gender pay gap reporting and enforcement mechanisms to ensure fair pay across the EU.

Companies operating within the EU will need to comply with new requirements. These include providing pay information before employment, being transparent about pay levels, and reporting on pay gaps. If a company with over 100 employees has a pay gap of 5% or more, it must conduct joint pay assessments. Non-compliance can lead to penalties.

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Get started with your preparations

The EU Pay Transparency Directive introduces new requirements for pay reporting and disclosure. With our free checklist, you’ll get clear, practical steps to plan ahead and ensure compliance on time.

The checklist helps you to:

Identify key actions
Ensure compliance with new requirements
Build a transparent and fair pay process

Don’t wait—take the first step toward readiness today!

Download the Checklist

Get your pay transparency report from Pihr

The directive can be summarized in four key areas:

1

Pay transparency for job-seekers

This provision ensures that employers disclose pay levels or ranges in job advertisements, enabling potential employees to make informed decisions before applying.

2

Right to information for employees

Employees have the legal right to request and receive information regarding pay levels and criteria used for determining pay within their organization.

3

Reporting on the gender pay gap

Companies are required to regularly report on existing gender pay gaps, highlighting disparities in pay between male and female employees.

4

Joint pay assessment

In cases where significant pay disparities are identified, employers must conduct a joint assessment with employee representatives to analyse and address the causes of these gaps.

Potential sanctions for non-compliance:

Burden of proof falls on the employer

In disputes regarding unequal pay, the responsibility lies with the employer to prove that their pay practices are non-discriminatory and based on objective criteria.

Risk of collective claims on equal pay

This part allows groups of employees to file collective claims against discriminatory pay practices, enhancing enforcement through group litigation.

EU Member States Implementation Status

The EU Pay Transparency Directive must be implemented no later than 7 June 2026. By then, all Member States are required to incorporate the directive’s minimum requirements into their national legislation.The directive includes obligations such as pay audits, pay transparency reporting, and the right for employees to request pay information—all with the aim of reducing gender pay gaps across Europe.

At present, Belgium is the only country to have implemented the directive. Several others, including Sweden, Poland, Ireland, the Netherlands, Finland, Malta and Germany, have presented legislative proposals that are now under review at various levels.

The remaining Member States such as France, Italy, and Spain, are working on their legislative drafts but have not yet made any proposals public. Progress varies in pace, reflecting differences in labour law, politics, and administrative capacity across the EU.

Pihr is closely monitoring developments and regularly updates its overview map as new announcements are made. As the deadline approaches in 2025 and 2026, the number of finalized legislative proposals is expected to increase significantly.

Implementation by country

Click on each country's button to view detailed information about its implementation of the EU Pay Transparency Directive. This includes the current status of legislation, key dates, and any draft laws or final measures already in place. Use these buttons to easily explore how each Member State is progressing toward the 7 June 2026 transposition deadline.

Sweden Poland Belgium Ireland The Netherlands

Finland Malta

We keep a close eye on the development across Europe. Get the latest updates here!

Key definitions

Gender pay gap: the difference in average pay levels between male and female workers for an employer expressed as a percentage of the average pay level of male workers
Unexplained gender pay gap: the difference in average pay levels between male and female workers that can't be explained with objective gender-neutral criteria
Median pay level: means the pay level at which half of the workers of an employer earn more and half of them earn less
Work of equal value: means work that is determined to be of equal value in accordance with the non-discriminatory and objective gender-neutral criteria

Why start now?

The EU Pay Transparency Directive will be implemented into national law by 2026, and the first reports are due the following year. Beginning preparations now allows companies ample time to adjust their internal processes, ensuring compliance with the new regulations.

Early adoption of these practices not only mitigates the risk of penalties but also positions a company as a leader in gender equality and fair pay. Proactively addressing these changes can enhance a company’s reputation, attract and retain top talent, and improve employee satisfaction by demonstrating a commitment to fairness and transparency.

Moreover, starting early provides an opportunity to thoroughly analyse and resolve any disparities in pay structures, which can be complex and time-consuming. It’s not just about compliance; it’s about fostering a culture of equity that can significantly benefit your organization in the long run.

Get started today

HR-employees discussing pay transparency and Polen implementation plan

EU Pay Transparency Timeline

2023
Directive adopted
- EU formally adopts the Pay Transparency Directive.
- Common rules set for disclosure, reporting and redress.
2024–2025
National laws & employer preparation
- Member states translate the Directive into national law.
- Employers map job architecture, pay bands and data sources.
- Reporting processes and governance put in place.
Jun 7, 2026
Member states must implement
- Implementation deadline; national obligations start to apply.
- Employers ready to disclose pay information and report.
Post-2026
Reporting & enforcement
- Ongoing gender pay gap reporting (thresholds vary nationally).
- Remedial actions if gaps exceed legal thresholds.
- Enforcement, penalties and employee rights to information.

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FAQ: EU Pay Transparency

When does the Directive take effect?

EU member states must transpose the Directive into national law by 7 June 2026. Your obligations and timelines are defined by your country’s implementing law.

Which employers are affected?

All employers operating in the EU fall in scope. Specific reporting thresholds and obligations depend on national implementation and, in many countries, the company’s employee count.

Do we need to show pay ranges in job ads?

Yes—candidates must receive information about the initial pay level or range for advertised roles, either in the ad or before the first interview, and you may not ask about a candidate’s salary history.

What information can workers request?

Employees can request written information on their individual pay and the average pay levels, broken down by gender, for workers doing the same work or work of equal value.

What counts as “equal work or work of equal value”?

Roles are compared using objective, gender-neutral criteria such as skills, effort, responsibility, and working conditions—often anchored in a documented job architecture and evaluation method.

Will we have to publish gender pay gap figures?

Yes—periodic gender pay gap reporting will be required per national law (frequency and size thresholds vary by country). Many regimes require at least an overall and category-level gap.

What is a Joint Pay Assessment (JPA)?

If reporting shows at least a 5% gender pay gap in any category that cannot be justified by objective, gender-neutral factors, employers must perform a Joint Pay Assessment with worker representatives and define corrective actions.

What data do we need to prepare?

A clean employee dataset (FTE, base/variable pay, allowances), job architecture & families, comparable-work groupings, location and contract data, and a defensible methodology for gap calculations.

What are the risks for non-compliance?

Member states will set penalties. Typical measures include fines, compensation, and procedural rules like a reversed burden of proof in pay discrimination claims.

How should we get started?

Map your obligations, align job architecture, define pay bands, run a baseline pay-gap analysis, document a gender-neutral methodology, and plan disclosures and communication.