EU Pay Transparency Directive:
What employers need to know in 2026
The European Pay Transparency Directive sets uniform standards across Europe to strengthen gender equality in the labor market and effectively combat the gender pay gap. Member States must transpose the directive into national law by June 7, 2026; failure to comply will result in penalties. We explain what employers need to know now and how they can efficiently meet the requirements.
Click here for Directive (EU) 2023/970
When will the directive come into force?
All member states must transpose the EU directive into national law by June 7, 2026, otherwise they face penalties. The regulations will apply to all employers from that date onward.
Countries are free to implement the directive at an earlier date – for example, Belgium: On September 12, 2024, the Parliament of the French Community (Fédération Wallonie-Bruxelles, FWB) implemented the EU directive on pay transparency. Although it only applies to employers under the jurisdiction of the FWB, it could serve as a model for the whole of Belgium.
Who is affected by the directive?
All member states must transpose the EU directive into national law by June 7, 2026, otherwise they face penalties. The regulations will apply to all employers from that date onward.
Countries are free to implement the directive at an earlier date – for example, Belgium: On September 12, 2024, the Parliament of the French Community (Fédération Wallonie-Bruxelles, FWB) implemented the EU directive on pay transparency. Although it only applies to employers under the jurisdiction of the FWB, it could serve as a model for the whole of Belgium.
The most important regulations
Transparency obligations in job advertisements (Article 5)
Employers must provide information about the salary range or starting salary of applicants when advertising job openings.
Employers are not allowed to ask applicants about previous salaries.
Right to pay transparency in the workplace (Article 6)
Employers must disclose the objective and gender-neutral basis on which wages and salary increases are determined. This can include, for example, qualifications, area of responsibility, or professional experience.
This information must be clearly understandable and easily accessible to everyone.
Offenlegung der Entgeltkriterien und Auskunftsrecht (Artikel 7)
Employees have the right to receive information about the salary of colleagues in comparable positions (groups of equivalent work), broken down by gender.
And: Employers are not allowed to forbid their employees from speaking openly about their salary.
Berichtspflichten (Artikel 9)
Employers with 100 or more employees must regularly report on the status of salary development in their company (see section Reporting Obligations).
Gemeinsame Entgeltbewertung (Artikel 10)
If the report (pursuant to Article 9) reveals a gender pay gap of 5% or more in even one group of equivalent work, employers must conduct a pay assessment together with employee representatives and demonstrably take measures to eliminate the gender pay gap.
Beweislastumkehr (Artikel 18 & 19)
The burden of proof is set in such a way that, in the event of a dispute, employers must prove that there is no pay discrimination.
Sanktionen (Artikel 23 & 24)
EU countries are obliged to introduce effective sanctions if employers violate the directive – for example, fines or exclusion from public procurement.
Reporting obligations
What is being reported?
Article 9 (1) of the Pay Transparency Directive specifies which key figures the reports must contain:
the gender pay gap;
the gender pay gap in supplementary or variable components;
the average gender pay gap;
the average gender pay gap with supplementary or variable components;
the proportion of employees who receive supplementary or variable components;
the proportion of employees in each pay quartile;
The gender pay gap between employees in groups of employees, broken down by normal basic wage or salary as well as by supplementary or variable components.
Who has to report?
Employers with 100 or more employees are required to report regularly on the status of salary development in their company.
Member States may, under national law, require employers with fewer than 100 employees to provide information on wage trends. They may not prevent companies from voluntarily providing information on wage trends.
When and how must reports be filed?
Depending on the number of employees, employers are subject to different deadlines by which the reports must be submitted:
For companies with 250 or more employees, the first deadline is June 7, 2027, for the preceding calendar year, and thereafter annually.
150 to 249 employees for the first time by June 7, 2027 for the preceding calendar year, then every 3 years thereafter
100 to 149 employees for the first time by June 7, 2031 for the preceding calendar year, then every 3 years thereafter
Be prepared with
With PAY_transparency, you can take action today, before the law comes into effect in your country . Our software offers:
All-in-one compliance solution
A fully automated software for easily fulfilling the requirements of the EU Pay Transparency Directive.
Reportable key performance indicators
All legally required pay transparency indicators are presented clearly and understandably.
Objective job evaluation
A scientifically sound method for identifying equivalent activities – or seamless integration of existing evaluation systems.
Efficient information provision
Enables fast and legally compliant answers to salary inquiries through structured salary comparisons.
Start today!
Further information can be found on the PAY_transparency page.