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EU Pay Transparency Directive · Practical guide

Pay transparency is a system, not a report.

The Directive does not prescribe a pay model. It requires that whatever model you use is explainable, consistent and gender-neutral.

Start self-checkWhat the Directive requires

Timeline

Four dates to plan around.

  1. 7 Jun 2023

    Directive (EU) 2023/970 enters into force.

  2. 7 Jun 2026

    Deadline for transposition into national law.

  3. 7 Jun 2027

    First reports: 250+ employees annually, 150–249 every three years.

  4. 7 Jun 2031

    First reports for employers with 100–149 employees.

Six requirements at a glance

What the Directive asks of you.

Art. 4

Objective, gender-neutral criteria

Read more
Art. 5

Pay ranges for applicants

Read more
Art. 6, 7

Accessible criteria and right to information

Read more
Art. 9

Regular gap reporting

Read more
Art. 10

Joint pay assessment with worker representatives

Read more The works council's role
Art. 18

Burden of proof – document every decision

Read more

Build your pay system

Six building blocks, one system.

  1. 01Job evaluation
  2. 02Job families & architecture
  3. 03Pay bands
  4. 04Processes & progression
  5. 05Leadership
  6. 06Reporting & equal pay
See the building blocks

Featured · Pay progression

Seven ways to move people through a pay band.

From fixed steps to fit scores — each rated on explainability, consistency and neutrality, with worked examples on one reference band.

Compare the seven models

The Directive doesn't reward the most complex model – it rewards the one you have under control.