Driving pay equity and transparency by 2026: what companies need to know about the implementation of the directive

The directive, which must be transposed into national legislation by all member states by 2026, introduces new obligations for employers and signals a broader cultural shift towards fairness, transparency, and equality in the workplace. As companies begin preparing for these upcoming requirements, the implementation process is expected to be both complex and transformative.

The new directive outlines a series of changes that will reshape how companies approach remuneration. First and foremost, greater transparency will be required from the earliest stages of recruitment, with employers obligated to disclose remuneration levels, for example in job postings, and ensure that candidates have access to clear information about remuneration policies.

To support fair pay practices, companies will need to adopt a structured job evaluation system that compares roles based on the value of the work performed, rather than on subjective or biased criteria. A reliable and transparent remuneration framework - with clearly defined rules for setting and progressing pay - will become essential.

Companies with more than 150 employees will be required to publicly report their gender pay gaps annually, starting with the reporting year 2026. From 2030, this obligation will extend to organisations with 100 to 149 employees, with reporting in 2031. Where unjustified pay differences exceed 5%, corrective measures must be implemented within six months. This proactive approach reinforces the directive’s commitment to eliminating systemic pay inequality.

Pay equity is more than just a legal or compliance issue - it is a matter of fairness and efficient business. Eliminating unjustified pay disparities positively influences company culture, boosting employee morale and fostering greater trust across teams. It also strengthens talent retention, as employees are more likely to remain with companies that demonstrate respect, inclusiveness, and fairness.

Moreover, companies that champion equal pay strengthen their employer brand and reputation, making them more attractive to prospective employees, clients, and investors. On a broader scale, closing the gender pay gap contributes to a more sustainable and equitable economy, fostering inclusive growth and long-term social progress.

To help companies demonstrate their commitment to pay equity, the EQUAL-SALARY certification - issued by the non-profit EQUAL-SALARY Foundation - offers a rigorous and internationally recognised framework. This certification confirms that an organisation pays its workers equally for equal work, based on objective and transparent processes.

Forvis Mazars in Romania, in partnership with Forvis Mazars in the Czech Republic, supports companies seeking to obtain the EQUAL-SALARY certification - demonstrating their commitment to a fair and responsible work environment. Our team helps companies understand the certification requirements, guides them through the necessary steps to align with European pay transparency standards, and supports their efforts to promote gender equality in the workplace.

As we approach the 2026 implementation deadline, the time for organisations to act is now. Forward-thinking companies that proactively align with the EU directive’s principles and integrate transparent pay structures into their corporate strategies will not only fulfill their legal obligations but also position themselves as responsible, modern employers. This proactive approach enables organisations to secure sustainable business growth, enhance their reputation in the marketplace, and contribute meaningfully to the creation of a fairer business environment.

Ready to lead in pay transparency and fairness? Let’s talk about your journey toward compliance, certification, and building a more equitable workplace.