EU Pay Transparency Directive: Prepare for implementation

At a glance

The EU Pay Transparency Directive brings new regulatory requirements that impact how private and public organizations disclose and manage pay information. Compliance will require significant operational, structural, and policy changes. 

A closer look

The EU Pay Transparency Directive intends to bolster existing laws on equal pay and help reduce the gender pay gap across Europe.

Key measures include the following:

• Job seekers will have the right to receive information about the pay band for their role prior to interview.
• Candidates cannot be asked about pay history.
• Existing workers will have the right to information on their individual pay level and the average pay levels, broken down by sex, for categories of workers performing the same work as them or work of equal value to theirs.
• Pay secrecy will be banned.
• Employers must ensure that female and male workers are paid equally for the same work or work of equal value. Pay structures should use objective and gender-neutral criteria agreed with workers’ representatives.
• Employers with 100+ workers must report on the company's gender pay gap by categories of workers who perform the same work or work of equal value; this includes reporting on variable pay elements and benefits in kind as well as basic pay.

How Deloitte can help

Our team of experienced professionals are well-equipped to help you navigate the intricacies of this Directive. Our specialists can assist in various areas. These include:

• Reviewing and/or implementing job architectures to facilitate the reporting and pay banding required by the Directive
• Developing comprehensive pay transparency and HR policies that comply with the Directive's requirements
• Conducting gender pay gap analysis to identify pay discrepancies and develop strategies to address them
• Reviewing existing pay structures and providing recommendations to ensure they are transparent and equitable
• Conducting training sessions for HR professionals and line managers to ensure they are fully equipped to implement and comply with the Directive

Author:

Marie-Cécile Legrand | Senior Manager - Banking & Human Capital