• HR & Compensation Consulting
    • Career & Pay Negotiation Coaching
    • Workshop & Speaking Topics
  • About
  • Community
  • Careers
  • Contact
    • Blog
    • Book Recommendations
    • Career Resources
    • Connect on Social Media
    • Free Pay Data
    • In The Media
    • Salary Surveys for Employers
    • Search This Site
    • Video Recommendations
Menu

Prosper Consulting, LLC

HR & Compensation Consulting | Pay Negotiation Coaching | Speaking

Your Custom Text Here

Prosper Consulting, LLC

  • Services
    • HR & Compensation Consulting
    • Career & Pay Negotiation Coaching
    • Workshop & Speaking Topics
  • About
  • Community
  • Careers
  • Contact
  • Resources
    • Blog
    • Book Recommendations
    • Career Resources
    • Connect on Social Media
    • Free Pay Data
    • In The Media
    • Salary Surveys for Employers
    • Search This Site
    • Video Recommendations

The Countdown to EU Pay Transparency Compliance is On

April 15, 2025 Denise Liebetrau

The EU Pay Transparency Directive is ushering in a new era of workplace equity, and while the June 2026 deadline might seem distant, the groundwork needs to start now.

This Directive requires that employers with over 100 employees regularly report on gender pay gaps. If a gap of 5% or more is identified in any job category and can't be justified by objective, gender-neutral criteria, employers have six months to address it. Failing that, a comprehensive pay audit, involving employee representatives, becomes mandatory.

Beyond reporting, the Directive empowers employees and job seekers with rights to salary transparency, bans on salary history inquiries, and protections against pay secrecy clauses.

Implementing these changes is no small feat. It requires overhauling pay structures, updating HR policies, and fostering a culture of openness. For HR, Compensation, and compliance teams, this is a significant undertaking.

As of now, only a few countries have made strides in transposing the Directive into national law:

·       Countries with Draft or Final Legislation: Belgium, Sweden, Ireland, Germany, Netherlands, and Poland

·       Countries with Preparatory Activity: Finland, Czech Republic, and Estonia

·       Countries with No Official Transposition Activity: Austria, Bulgaria, Croatia, Cyprus, Denmark, France, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Portugal, Romania, Slovakia, Slovenia, and Spain.  (While these countries have not initiated official transposition activities, some have existing legislation related to pay transparency and equity.)

For organizations operating across Europe, this is a call to action. Start by auditing your current pay structures, ensure transparency in your recruitment processes, and engage with employee representatives early.

Change is challenging, but it's also an opportunity to build trust, attract top talent, and lead to fostering an equitable workplace.

If you need help, let’s talk. 

#PayTransparency #EUCompliance #Leadership #WorkplaceEquity #EqualPay #FairPay #Compensation #HR #HumanResources #CompensationConsultant

Sources: beqom and Ius Laboris

← Compensation work is not for those who lack courage.Rethink HR/Compensation Workload: Shift to Self Service →

Copyright 2017 - 2025 Prosper Consulting, LLC. All rights reserved.