EQUAL-SALARY DIRECTIVE

In 2023, the European Union adopted the Pay Transparency Directive 2023/970, which introduces major changes in the area of pay transparency. It significantly bolsters the application of the principle of equal pay for equal work or work of equal value between men and women. This Directive, which member states must implement in their national legislation by 2026, binds employers to a number of obligations. Its implementation can be demanding and requires thorough preparation.

The new EU directive introduces obligations aimed at

  • Reducing the gender pay gap
  • Promoting equal conditions for all employees
  • Increasing the pay transparency
  • Strengthening enforcement mechanisms for the principle of equal pay

Key changes for companies

  • Pay Transparency already during the recruitment process
  • A clear system for comparing jobs by value of work
  • A reliable systematic remuneration system – transparency of pay setting and pay progression policy
  • Reporting the pay gap
    • Mandatory report for companies with more than 150 employees relating to calendar year 2026 and for companies with 100–149 employees relating to calendar year 2030
  • Gender-neutral criteria
    • Establishing transparent rules for determining remuneration
  • Quick resolution of identified inequalities
    • Differences of over 5% must be eliminated within 6 months

How can we help you?

  1. Adapting the remuneration processes
    The Directive requires transparent remuneration systems and open communication both in recruitment and during the course of employment. We will help you establish gender-neutral processes that meet the new requirements.
  2. Analysis and elimination of gender differences
    The regular reporting of gender differences will be mandatory for companies. We will help you identify any differences and suggest solutions to eliminate them.
  3. Minimising the risks
    Forvis Mazars helps you to avoid legal sanctions and to maintain a positive image of the company by properly setting up transparent processes.
  4. Equal Salary Certification
    As an accredited partner of theEQUAL-SALARY Foundation, we are entitled to carry out audits leading to EQUAL-SALARY CERTIFICATION.

Other services in the area of HR and Payroll Services that we can offer you

  • Payroll accounting services, reporting and related expertise
  • International payroll management, operations controlled and reported in aggregate
  • HR / payroll integration
  • Payroll / accounting integration
  • Payroll consultancy services (including labour-law consultations and the payroll transformation process)
  • Consultation in the area of employee mobility
  • International payroll-specific project management (transition, integration, process transformation, monitoring and general account management)
  • HR consultancy including increasing motivation, developing talents and coaching managers

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Forvis Mazars - Equal Salary_​EN

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