Directive (EU) 2023/970, known as the Pay Transparency Directive, was adopted on 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between women and men. It does this through pay transparency measures and reinforced enforcement mechanisms, building on the equal-pay principle already set out in Article 157 of the Treaty on the Functioning of the EU.
The Directive is not directly applicable. EU Member States must transpose it into national law by 7 June 2026 (Article 34). National implementing laws may go further than the Directive's minimum standards, so exact obligations, definitions, and enforcement will vary by country. Phased gender pay gap reporting duties begin to bite from 7 June 2027.
What does the Directive actually require?
The Directive establishes minimum requirements to make pay structures more transparent and to make it easier to detect and challenge pay discrimination based on sex. Core elements include:
- Equal pay for equal work or work of equal value, supported by objective, gender-neutral criteria for setting pay, pay levels, and pay progression.
- Pre-employment pay transparency for job applicants.
- A right to information on pay for current workers.
- Gender pay gap reporting for larger employers, phased by size.
- A joint pay assessment where an unjustified gap of 5% or more persists.
- A shift in the burden of proof to the employer in equal-pay disputes.
Member States must apply these rules through national law by 7 June 2026.
What are the pre-employment pay transparency rules?
Under Article 5, applicants have the right to receive information on the initial pay or its range for the advertised position, based on objective, gender-neutral criteria, before any interview (or otherwise before the employment relationship begins). The Directive also points to providing this in or alongside the job notice.
Employers may not ask applicants about their pay history in their current or previous employment relationships.
Job vacancy notices and job titles must be gender-neutral, and recruitment processes must be conducted in a non-discriminatory way. These hiring-stage obligations apply regardless of employer size.
What information can current workers request about pay?
Article 7 gives workers the right to request and receive, in writing, information on:
- their own individual pay level, and
- the average pay levels, broken down by sex, for categories of workers doing the same work or work of equal value.
Workers can make this request directly or through their representatives. Employers must respond within a reasonable period, and in any event within two months, and must inform all workers annually of their right to this information.
Employers cannot prevent workers from disclosing their own pay for the purpose of enforcing equal pay, and contractual terms restricting such disclosure are prohibited.
Who must report on the gender pay gap, and how often?
Article 9 introduces gender pay gap reporting to a national monitoring body, phased by workforce size:
- 250+ workers: report annually, with the first report due by 7 June 2027.
- 150–249 workers: report every three years, with the first report due by 7 June 2027.
- 100–149 workers: report every three years, with the first report due by 7 June 2031.
Employers with fewer than 100 workers have no reporting obligation under the Directive, though Member States may extend reporting voluntarily or by national law. Reports cover prescribed indicators, including the overall and median gender pay gap and the gap in complementary or variable components.
What is a joint pay assessment and when is it triggered?
Under Article 10, a joint pay assessment is required when reporting shows a difference in average pay level between female and male workers of at least 5% in any category of workers, where the employer:
- has not justified the difference on the basis of objective, gender-neutral criteria, and
- has not remedied the difference within six months of submitting the pay report.
The assessment is carried out in cooperation with workers' representatives. It analyses the causes of the gap and requires the employer to take remedial measures within a reasonable time, in collaboration with those representatives.
How does the Directive change enforcement and the burden of proof?
The Directive strengthens remedies and enforcement. Workers who suffer pay discrimination based on sex are entitled to full compensation, including recovery of back pay and related bonuses.
Article 18 shifts the burden of proof to the employer: where a worker establishes facts from which discrimination may be presumed, the employer must prove there was no direct or indirect discrimination. The burden also shifts where the employer has not complied with its pay transparency obligations, unless the infringement was manifestly unintentional and minor. Member States must also provide for effective, proportionate, and dissuasive penalties.
When does it apply and what should employers do now?
Member States must transpose the Directive into national law by 7 June 2026 (Article 34). The exact text, thresholds, and enforcement will be set by each country's implementing legislation, which may exceed the EU minimum.
Preparation typically focuses on:
- Defining objective, gender-neutral criteria for pay and progression.
- Auditing current pay data to identify gaps by worker category.
- Updating recruitment to publish pay ranges and stop pay-history questions.
- Building processes to respond to worker pay-information requests.
- Preparing reporting capability ahead of the first deadlines in 2027.
This page summarises the Directive at EU level and is not a substitute for the applicable national implementing law or legal advice.
Frequently asked questions
What is the transposition deadline for the EU Pay Transparency Directive?
Member States must bring the necessary laws into force by 7 June 2026 (Article 34). National rules apply from that point, subject to each country's implementing legislation.
Do the pay transparency rules apply to small companies?
The hiring-stage rules (salary range disclosure, ban on asking pay history) and the worker right-to-information apply regardless of employer size. However, gender pay gap reporting obligations only apply to employers with 100 or more workers, phased by size.
Can an employer ask a job applicant about their current or previous salary?
No. Under Article 5, employers may not ask applicants about their pay history in current or previous employment. Applicants are also entitled to know the initial pay or pay range for the role before the process advances.
What happens if a gender pay gap of more than 5% is found?
If an unjustified gap of at least 5% exists in any worker category and is not remedied within six months of reporting, the employer must conduct a joint pay assessment with workers' representatives and take remedial measures (Article 10).
How does the burden of proof work in equal pay claims?
Article 18 shifts the burden to the employer: once a worker shows facts suggesting discrimination, the employer must prove none occurred. The burden also shifts if the employer breached its transparency obligations, unless the breach was manifestly unintentional and minor.
When do the first gender pay gap reports have to be submitted?
Employers with 250+ workers and those with 150–249 workers must submit their first report by 7 June 2027. Employers with 100–149 workers have until 7 June 2031, then report every three years.