Pay Transparency Directive: What employers need to know

In 2023, the European Union adopted Directive (EU) 2023/970 on Pay Transparency, introducing major changes to strengthen the principle of equal pay for equal work or work of equal value between women and men. Member States must transpose this Directive into national legislation by 2026, and its implementation will require employers to make substantial adjustments.

The obligations introduced by the new EU directive on equal pay

The directive aims to:

  • Reduce pay gaps between women and men
  • Promote equal conditions for all employees
  • Increase pay transparency
  • Strengthen mechanisms for enforcing the principle of equal pay

Key changes for businesses

Transparency during recruitment
Candidates must have access to pay information before employment begins.

Job evaluation based on value of work
Employers must implement clear systems for comparing roles.

Transparent remuneration and progression policies
Pay-setting and career advancement must follow documented, objective criteria.

Gender-neutral criteria
Remuneration rules must be transparent and free from bias.

Corrective measures
Pay differences exceeding 5% must be addressed within 6 months.

Mandatory pay gap reporting

  • 250 or more employees – first report for 2026, then annually
  • 150 to 249 employees – first report for 2026, then every three years
  • 100 to 149 employees – first report for 2030

How Forvis Mazars can help

  1. Adapting remuneration processes
    We help design gender-neutral, transparent systems for recruitment and employment.
  2. Analysis and elimination of pay gaps
    Our experts identify disparities and propose actionable solutions.
  3. Risk mitigation
    Avoid legal sanctions and protect your company’s reputation through compliance.
  4. EQUAL-SALARY certification
    As an accredited partner of the EQUAL-SALARY Foundation, we will guide you through the certification process.

Additional HR & Payroll services

  • Payroll accounting and reporting
  • International payroll management
  • Advisory and transformation of payroll processes
  • Employee mobility consulting
  • Management of international payroll projects
  • HR and leadership resilience advisory (team resilience, organisational ethics, women’s leadership, psychological safety, etc.)

Are you ready for the Pay Transparency Directive?

Contact us for a tailored proposal and ensure your company is fully compliant.

Request a proposal

Document

Forvis Mazars - Pay transparency

Contact us