Brightmine guide to the EU Pay Transparency Directive
In May 2023, the European Parliament adopted a directive that will require the 27 member states of the European Union to implement a variety of measures aimed at advancing pay equity and increasing pay transparency. Member states have until June 7, 2026, to enact and implement national legislation carrying out its requirements.
For employers that operate or hire in the EU, the time to prepare is now. While 2026 may seem far in the future, some countries may choose to proceed on a quicker timeline. What’s more, implementing a pay equity and pay transparency strategy is not as easy as flipping a switch. An employer must carefully consider how its approach to pay transparency fits in with its overall strategy—while simultaneously ensuring that it is in compliance with any applicable laws. The opportunities for missteps are abundant, and an employer that takes a haphazard approach to pay transparency risks alienating its employees, damaging its public reputation, and more.
While there will likely be some variation from country to country in the laws that result from the pay transparency directive, employers with an EU presence should prepare to address the core areas outlined in this guide.
In partnership with Brightmine (FKA XpertHR)
Brightmine is a leading, global provider of people data, analytics and insight.
