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The EU Pay Transparency Directive

In a bold step forward in tackling and enforcing equal pay, the EU Pay Transparency Directive was published in the Official Journal of the EU on 17 May 2023. This means the Directive will be in force by 7 June 2023 with Member States having three years to transpose it into national law. 

The central plank of the Directive is to introduce gender pay gap reporting measures, similar to those that already exist in the UK. However, the reporting requirements are backed up by powerful enforcement mechanisms, not present in the UK regime. Other key provisions include an obligation to remedy pay gaps of 5% or more and increased pay transparency for prospective and current employees.

Although the Directive (once locally implemented) will only strictly impact EU employers and non-EU employers operating in EU member states, it is likely to raise employees’ expectations regarding pay transparency and pay gaps, and influence the development of future regulation in jurisdictions outside the EU.

Pay Transparency and Equal Pay: The European Landscape

In our client publication, we look at some of the key European jurisdictions and the degree of change that will be required to comply with the Directive’s obligations. Explore the publication to find out more, including which countries should expect the biggest shift in law and practice from the introduction of the Directive. 

Clients can download a copy of the guide here
Pay Transparency and Equal Pay: The European Landscape_ map_image

What does it mean for your organisation?

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What do UK employers need to know?

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What do EU employers need to know?

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EU Pay Transparency Directive published in the OJEU

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European Parliament adopts Pay Transparency Directive: addressing the gender pay gap

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