The directive in more detail
The Pay Transparency Directive was adopted in 2023 to close the gender pay gap where it comes from: pay that is set without clear criteria and kept out of sight. It applies to employers in the public and private sectors and to all workers with an employment contract or relationship. The country pages above show how far each national law has moved.
Work of equal value
Equal pay covers identical jobs and different jobs of equal value. Roles are compared with objective, gender-neutral criteria such as skills, effort, responsibility and working conditions. Most obligations in the directive work per category of workers doing the same work or work of equal value, so grouping roles into such categories comes first.
Before employment
Applicants receive the starting pay or its range in time to negotiate on pay, for example in the job ad or before the interview, employers may not ask about pay history, and job ads and titles must be gender-neutral. Pay in recruitment, country by country.
During employment
Employees can see the criteria used to set their pay and pay progression, and they can request their own pay level and the averages for their category, broken down by sex. Employers answer within two months and remind everyone of the right once a year. Clauses that stop employees from disclosing their own pay are prohibited. Right to pay information, country by country.
Pay gap reporting and joint pay assessment
Employers with 100 or more workers report seven pay gap measures, every year from 250 workers and every three years below that. A gap of at least 5% in a category that is neither justified nor remedied within six months leads to a joint pay assessment with workers’ representatives. Pay gap reporting, country by country.
Enforcement
Workers who suffered pay discrimination have the right to full compensation, including back pay. When an employer has not met its transparency obligations, the burden of proof shifts to the employer, unless the breach was manifestly unintentional and minor. Limitation periods are at least three years, and member states set penalties, including fines, that must be effective, proportionate and dissuasive.
How to prepare
- Build a job architecture that groups roles into categories of equal value.
- Document pay criteria for setting pay and for progression.
- Set ranges for every role so recruitment can share them.
- Analyse gaps per category and record which ones you can justify.
- Set up a process for pay information requests and the annual notice.
- Follow your country’s law: the timing and details come from national transposition.