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Cyprus Pay Transparency Update

Implementation of the EU Pay Transparency Directive Is Now Underway

Cyprus has officially entered the implementation phase of the EU Pay Transparency Directive.

With the EU transposition deadline set for 7 June 2026, Cyprus is no longer in a preparatory “watch and wait” position — the country has already taken concrete legislative steps toward adopting the Directive into national law.

Cyprus Has Published Draft Legislation

In November 2025, Cyprus released a draft bill designed to transpose Directive (EU) 2023/970 into national legislation. This marks a clear milestone: Cyprus is actively moving forward with implementation, and the framework for future employer obligations is now visible.

The draft is titled:

The Strengthening of the Implementation of the Principle of Equal Remuneration… through Wage Transparency and Enforcement Mechanisms Law of 2026.

Cyprus Is Aligning With Core EU Pay Transparency Requirements

The draft legislation confirms that Cyprus intends to implement the Directive’s key pillars, including:

Mandatory Pay Transparency in Hiring

Employers will be expected to introduce transparency already at recruitment stage, including:

• Providing salary ranges upfront

• Ending the practice of asking candidates about pay history

Clear Rules for Pay-Setting and Progression

Cyprus is also preparing to require that pay levels are determined using:

• Objective criteria

• Gender-neutral evaluation

• Transparent progression systems

This is a major structural shift for employers who currently lack formalized pay frameworks.

Employee Right to Pay Information

Employees in Cyprus will gain strengthened rights to request information on:

• Their own pay level

• Average pay levels for comparable roles

• Gender-based pay differences

Gender Pay Gap Reporting Obligations

The draft also reflects upcoming reporting duties for larger employers, including corrective action where unjustified pay gaps are identified.

Public Consultation Has Closed — Next Step Is Adoption

Cyprus has already completed the consultation stage. Public feedback on the draft closed in December 2025, and the legislation is now expected to proceed through the formal adoption process.

Cyprus is therefore firmly in the active transposition stage, with national law expected before the June 2026 deadline.

What This Means for Employers in Cyprus

This is a clear signal: pay transparency compliance in Cyprus is no longer theoretical. Employers should begin preparing now by:

• Reviewing pay structures and job architecture

• Documenting pay-setting criteria

• Building systems for gender pay gap reporting

• Training HR teams on transparency obligations

Once the law is adopted, implementation timelines will move quickly.

Want to know more about the EU Pay Transparency Directive?

Read more here

Key Takeaway

Cyprus has formally begun implementing the EU Pay Transparency Directive. Draft legislation has been published, consultation has concluded, and the country is now on track toward adoption ahead of 7 June 2026.

For employers, the message is clear: preparation should start now.