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Friday, March 13, 2026

Pay Transparency vs. Privacy – Who Trumps Whom? - Employment Law Worldview

If we had to rank the most frequently asked questions regarding the Pay Transparency Directive, the question of its relationship to individual employees’ right to privacy and the GDPR would be pretty high up there.

The concern is clear: the Directive requires employers to share averages of wages of male and female employees per category of employees, either at the request of an individual employee or as part of the (tri-) annual pay reporting. But what should you do if the number of employees of a certain gender in a specific category is very low, and sharing the data per category thereby indirectly comes down to sharing individual employees’ pay data with their colleagues?

The Directive acknowledges this concern, but does not do much more than that. It states that to the extent any information provided pursuant to the individual right to information, the (tri-annual pay reporting or the joint pay assessment involves the processing of personal data, it shall be provided in accordance with the GDPR, and that such personal data shall not be used for any purpose other than for the application of the principle of equal pay. The Directive also suggests that Member States consider further measures: they may decide that, “where the disclosure of information would lead to the disclosure, either directly or indirectly, of the pay of an identifiable worker, only the workers’ representatives, the labour inspectorate or the equality body shall have access to that information”. In...



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