Member states have until 7 June 2026 to implement the Pay Transparency Directive. However, employers must not delay action. They should already be taking appropriate steps to meet the new regulations.  

One of the main tenets of the Directive is for employers to have compensation systems that provide equal pay for equal work or work of equal value. Every employer should look at and revise current compensation structures, as well as value jobs. Employees will gain greater access to pay information, such as access to the criteria used to determine the pay (which must be gender-neutral), pay levels and pay progression. They will be able to request information on the salaries of employees performing the same work or work of equal value. This means defining gender-neutral criteria for raises and specific pay rates and levels for all employees. Devising a proper compensation structure will be a long-term process and it will not be a one-off task. It will be necessary to periodically verify that the system meets the requirements following from the Directive. 

Another revolutionary change is the reporting of the wage gap (i.e. the difference between the average salaries of men and women). Employers should count the wage gap now to know whether they need to take corrective action. A result of at least 5% should be a warning to employers. It will then be necessary to take measures to reduce the wage gap until the directive is implemented. 

The directive will also introduce new requirements for the recruitment process. Changes in this area will be inevitable. Candidates will have the right to "informed" negotiations. This means communicating the salary range or minimum salary for the offered position before the first interview (e.g. in the content of job advertisements).  Questions about past salaries will be unacceptable, and job offers will have to be gender-neutral (feminitives and musculatives for the names of all jobs). 

Find more in the PRO HR February 2024.