Member states have until 7 June 2026 to implement the provisions of the EU Pay Transparency Directive (the "Directive"), which was approved by the Council of the EU on 24 April 2023 and published in June 2023.
Although some Member States already have practices which overlap to some degree with the Directive, and draft implementing legislation has been published in the Netherlands, most Member States have not yet put in place the necessary local legislation and detailed guidance to enable employers to have a clear understanding of exactly what steps they will need to take to comply in each jurisdiction, and across their EU footprint as a whole.
We set out below what we do know about the Directive's key provisions, together with a round-up of progress across key jurisdictions, and our practical tips for employers at this stage.
The Directive's stated aims are to: (i) empower employees to enforce rights; (ii) strengthen transparency; (iii) improve public understanding; and (iv) enhance enforcement.
The Directive aims to introduce consistency in gender pay gap reporting across Europe with prescribed methodology, scope and frequency. Employers across Europe will need to report gender pay gaps across their organisation and to collect pay data by "categories of workers" - defined as workers performing the same work or work "of equal value". Employers will be required to have analytical tools / methodologies for supporting the assessment of the value of work and establishing pay...
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