EU Pay Transparency Directive

Are you ready to comply?

The EU Pay Transparency Directive is coming. Deloitte helps organisations assess their readiness, develop and implement a robust pay equity strategy, and achieve compliance.

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We are a single source solution spanning reward, employment law, behaviour change and analytics.

What is the EU Pay Transparency Directive (EUPTD)?

The EUPTD aims to improve equal pay and reduce the gender pay gap by setting core requirements for pay transparency and reporting across all EU Member states. Member states must implement these minimum requirements into local laws by June 2026, though they may choose to go further. In short:

Aims to improve equal pay laws and reduce the gender pay gap.
Affects organisations with employees in EU member states (regardless of headquarters).
Key requirements: Pay band disclosure to job seekers, ban on salary history questions in interviews, right to information on individual and average pay levels by sex, ban on pay secrecy, equal pay for equal work, mandatory gender pay gap reporting for employers with 100+ workers, remediation for unjustified pay gaps of 5% or more.
Deadline for transposition into local law: 7 June 2026. Reporting commences in 2027.

What should companies be thinking about?

Have you conducted a readiness assessment?
Does your job architecture allow you to categorise workers?
Are your pay setting and pay progression criteria gender neutral?
Have you analysed your pay data to understand gender pay gaps?
Are you ready to make pay transparent for your employees and job applicants?
Have you engaged with worker representatives?
Have you considered the implications for your globally mobile workforce?

5 practical steps to prepare for compliance with the EU Pay Transparency Directive

Conduct a preliminary pay gap assessment
Establish governance structures and budget
Review and enhance job architecture and pay bands
Prioritise data accuracy and availability
Review recruitment practices and engage with employee representatives.

How Deloitte can help

Reward strategy & job architecture
Legal advice & employee relations
Assessments & reporting (including pay gap analysis technology)
Governance, policies & processes
Behavioural change & communication

EUPTD progress in select member states

Several EU member states have already begun their local law implementations (in various ways) and momentum will increase as the June 2026 deadline nears. Hover below for country specific updates.