The EU Pay Transparency Directive (EUPTD) introduces binding measures to enhance pay transparency and promote fair compensation practices across all EU member states. While implementation timelines and approaches to transpose the EUPTD into national law vary by country, companies face similar challenges in preparing for compliance. This article provides a multinational perspective, covering the EUPTD’s core objectives, country-specific insights, and practical steps to meet transparency requirements across Europe.

The EUPTD establishes, for the first time, uniform and legally binding standards across all EU member states aimed at promoting pay equity through enhanced transparency. The Directive will enter into force on 7 June 2026, with the first reporting obligations due by 7 June 2027. Key requirements include:

Mandatory pay transparency measures before and during employment

• Disclosure of salary information: Employers must provide information on salary ranges or starting salary during the recruitment process. Questions about applicants’ previous remuneration are prohibited.
• Information obligation: Employers are required to proactively inform employees about the objective, gender-neutral criteria used to determine, set, and develop compensation.
• Right to information: Employees have the right to access information on their individual pay as well as the average pay for comparable roles, broken down by gender.

Regular gender pay gap reporting obligations consisting of...

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