Understand the key Directive requirements
External gender pay gap reporting
Organisations must report on their gender pay gap annually or every three years, depending on their size. Your report must include pay disparities by categories of workers performing the same work or work of equal value.
Internal equal pay assessment
If the external report reveals a pay gap of more than 5% in any category of worker that can’t be justified by objective, gender-neutral criteria, you must act. This means conducting a joint pay assessment to address unjustified disparities.
Employers and employee representatives carry out this collective evaluation to analyse and identify pay disparities in an organisation.
Employee right to request
Employees can request information about average pay levels broken down by sex and for their category of worker. Employers must provide this information within two months. They must also ensure pay criteria are objective and gender-neutral.
Recruitment pay transparency
Employers must disclose the starting salary or pay range for advertised positions in vacancy notices or ahead of interviews. They cannot ask candidates about their pay history.
Pay philosophy
Organisations should develop and communicate a clear pay philosophy that outlines their approach to compensation. This should include criteria for raises, promotions and career progression.
Worker compensation
Employers must ensure fair compensation practices, including addressing pay gaps and providing compensation in cases of pay discrimination.
Key focus areas to prepare for compliance
1. Agree strategic principles
Embedding compliance with the directive into your organisation’s broader strategy ensures it supports long-term goals rather than acting as a standalone obligation.
The directive can be a powerful lever to drive operational efficiency, strengthen your brand and promote workplace equity. PwC’s immersive workshops uncover these opportunities to align compliance with your strategic priorities.
2. EU pay transparency readiness assessment
To ensure you’re prepared for compliance, identify priority gaps now. Our experts can assess your organisation against the directive requirements to understand if you need to address any gaps urgently. This includes assessing your data, policies, processes and technology.
3. Roadmap to compliance
A clear, structured plan is essential to ensure your organisation makes the right changes to meet the Directive’s requirements.
We can help design a tailored roadmap to compliance that:
outlines the key actions
identifies potential risks
clarifies stakeholder roles
establishes governance processes.
We are here to help you
The EU Pay Transparency Directive is more than compliance—it's a chance to lead on equity, build trust and turn data into meaningful change.
Whether you need help with reward strategy, compliance, HR technology, communications or change management, we bring together the right specialists at the right time to support you on your journey.
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