In recent years, the European Union has been consistently striving to improve the conditions of employees in the labour market. One of the new directives that will have an impact on companies and their employees as well as job applicants is the Directive on gender pay transparency. From mid-2027, the Directive will require companies to report gender-related data on pay equality and will also require them to be able to transparently inform their employees and candidates about the salary level for a given position. Overall, the Directive brings with it a number of issues and challenges that we need to start preparing for as soon as possible.
During the half-day workshop, we will look at the individual areas that will be affected by the new Directive (reporting, technology, changes to legal documents, as well as HR processes and agenda - recruitment, remuneration and more). We will then work with you to assess how prepared your company is on each topic, define and prioritise the action steps you need to take to be compliant from 2026.
Calculating the gender pay gap in your company and gender pay gap dashboard
We have created a clear and interactive dashboard that captures all the items you will need to track as part of your reporting obligations. The dashboard can be supplemented with other related reports according to your organisation's needs (e.g. pay gap by team, region, etc.).
We will carry out the initial calculation of the gender pay gap for you, analyse your result and propose measures to reduce any gap, including the quantification of the cost of reducing the gap below the required 5% level. If you wish, we can implement the dashboard in your company and you can carry out further analysis yourself, or we can carry out the calculation for you on a regular basis and provide other steps related to the reporting obligation.
Readiness audit including review of your documents
This is an extension to the Pay Transparency Workshop and the calculation of the gender pay gap. In addition, as part of this service we will analyse your documentation related to the topics in detail and then produce a report summarising all the findings and our recommendations. The output will then be presented to you at a final workshop where you will have the opportunity to discuss everything with our HR, legal and tax experts.
Comprehensive support and consideration of the directive in all relevant processes (position architecture, remuneration strategy, recruitment, communication, etc.)
Positions (or jobs of equal value) and their settings play an important role in remuneration transparency. The average remuneration of men and women performing work of equal value should not differ by more than 5%. Appropriate classification into the same categories of activities is also essential when informing employees and candidates of the salary level in their category. To be prepared to transparently communicate and report this data internally and externally, we recommend you consider a comprehensive review of your position architecture, remuneration strategy, as well as taking into account the obligation to transparently communicate pay ranges within the company or during the recruitment process.
As part of this comprehensive project, we will help you with:
Review and updates of the job architecture and its catalogue;
Evaluation and grading according to the Deloitte methodology, which will then be retained for future use;
Benchmarking and setting up remuneration bands for individual grades/job families;
Identifying outliers and setting up a pay alignment strategy;
Designing a methodology to justify any pay differentials (number of years on the job, education, overtime, performance, etc.) for EU Pay Transparency reporting purposes;
Setting up governance for the EU Pay Transparency Directive for all HR processes;
Taking into account the obligation of transparent communication within the recruitment process and within the company and towards employees.
What obligations does the Directive entail?
The Directive imposes four basic obligations on companies:
Transparency and access to information during the employment relationship and before joining
Under the Directive, employees will have the right to be informed of their individual remuneration level and of the average remuneration levels broken down by gender for categories of workers who perform the same work or work of equal value as them.
The Directive also implies a requirement to inform applicants of the starting remuneration level for the job or the pay range. In doing so, the information will have to be provided to the candidate without them having to ask for it, “for example, in a published vacancy notice, before the job interview or in any other way”.
Pay gap reporting
Under the Directive, employers will also be obliged to provide the state with a range of information relating to salaries and the gender pay gap. The average gender pay gap for each category of employee should not exceed 5% per employer. If this is the case, the employer will be obliged to justify and remedy the pay gap.
Joint remuneration review
The employer is obliged to undertake a joint remuneration review to address and remedy the pay gap in cooperation with the employees if:
The remuneration report shows an average gender pay gap of at least 5% for any category of workers;
The employer has failed to justify the difference in average remuneration levels on objective and gender-neutral criteria;
The employer has not corrected the unjustified difference in the average remuneration level within six months of the date of submission of the remuneration report.
During a joint remuneration review, the employer and the employee representatives should first identify the pay gap and the reasons for it. Subsequently, remedy the differences and take measures to prevent them.
Who will be affected by the Directive and from when will reporting be mandatory?
The new rules will affect all employers regardless of their size. Member States are required to implement the Directive by June 2026.
Under the Directive, gender pay gap reporting will only apply to companies with 100 or more employees (however, the Czech legislator may also impose obligations on smaller companies). The frequency of reporting and the deadline for submitting the first report will vary depending on the size of the company. Companies with more than 150 employees will be obliged to submit data on the gender pay gap in 2027, but data for 2026 will already be reported.
What will all be affected by the Directive?
Job architecture and evaluation
It will involve the creation a fair and comprehensive system for evaluating and comparing categories of activities, as well as setting up a monitoring process and creating appropriate job descriptions.
Wage setting and remuneration strategy
It will involve identifying of the pay gap and qualitative justification of the difference, deciding on possible changes of pay bands and the performance appraisal cycle and establishing criteria for pay bands changes.
Recruitment and selection of suitable canditates
It will concern setting up a process for informing applicants about the salary range, adressing any tension from existing employees, adjusting contracts, guidelines and documents and also training for hiring managers.
Documentation and communication
It will involve documenting the process of deciding on pay bands, setting up a reporting process and ensuring appropriate communication to employees, candidates, government authorities and other stakeholders.
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Is the gender pay gap in your company below 5%?
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