EU Pay Transparency Compliance Made Simple
Job category management + salary band documentation + gender pay gap analysis + information request handling = complete pay transparency before the June 2026 deadline.
What is the EU Pay Transparency Directive?
The EU Pay Transparency Directive (2023/970) aims to close the gender pay gap through transparency measures. It requires employers to provide job applicants with salary range information, give employees access to average pay levels by gender, and publish gender pay gap reports. Companies with 100+ employees must report; those with gaps over 5% must conduct joint assessments with workers.
Complete Pay Transparency Toolkit
From job classification to gap reporting, MultiComply guides every step.
Job Categories
Define and manage job categories based on equal work criteria. Track skills, responsibilities, and working conditions.
Salary Bands
Document salary ranges for each position. Ensure transparency for job postings and internal equity.
Pay Gap Analysis
Calculate mean and median gender pay gaps. Track quartile distribution and bonus gaps automatically.
Information Requests
Handle employee requests for pay information. Track deadlines and maintain compliance records.
Job Postings Compliance
Ensure all job postings include salary ranges. Track compliance status across all vacancies.
Joint Assessment
When pay gap exceeds 5%, generate joint assessment templates and remediation plans with worker representatives.
Reporting Dashboard
Generate authority-ready reports with all required metrics. Export in multiple formats.
Audit Trail
Complete documentation of all pay decisions and methodology. Audit-ready compliance records.
Who Must Comply?
The directive applies to all EU employers, with phased implementation.
250+ Employees
Annual reporting starting 2027. Must publish gender pay gap data and provide employee access to pay information.
150-249 Employees
Report every 3 years starting 2027. Same obligations as larger employers with extended timeline.
100-149 Employees
Report every 3 years starting 2031. Minimum company size threshold for mandatory reporting.
All Employers
Must provide salary ranges in job postings and respond to employee pay information requests regardless of size.
Frequently Asked Questions
Common questions about EU Pay Transparency compliance.
What must be disclosed in job postings?
The initial pay or pay range based on objective, gender-neutral criteria. This information must be provided before the job interview or in the vacancy notice.
What information can employees request?
Employees can request their individual pay level and the average pay levels, broken down by sex, for categories of workers doing the same or equal value work.
What penalties apply for non-compliance?
Member states must establish effective, proportionate, and dissuasive penalties. These may include fines and compensation to affected workers including full back pay.
When does the 5% gap trigger joint assessment?
If reporting reveals a 5%+ gap in any category of workers that cannot be justified by objective, gender-neutral factors, employers must conduct a joint pay assessment with worker representatives.
How is "equal work" defined?
Work is considered equal when it is the same or of equal value based on: skills/qualifications, effort, responsibility, and working conditions. Member states must develop classification systems.
What records must be maintained?
Job evaluation criteria, pay structures and policies, pay progression criteria, and records of individual pay decisions. These must be available on request.
Does this apply to pay negotiations?
Employers cannot ask about current or historical pay. Pay must be based on the role requirements, not negotiation leverage from previous salaries.
How does this interact with GDPR?
Pay data may involve personal data processing. GDPR principles apply, but cannot be used to refuse legitimate pay transparency requests. MultiComply manages both.
Get Pay Transparency Ready Before 2026
Start your compliance journey today with our comprehensive toolkit.
Complete Your Compliance Stack
Pay transparency compliance works best alongside your other HR and data protection obligations.