Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
The EU Pay Transparency Directive introduces binding rules to strengthen equal pay for equal work or work of equal value across the EU.
This page explains the Directive’s key requirements and how organisations can prepare by building transparent, objective and explainable pay structures.
The EU Pay Transparency Directive introduces EU-wide minimum standards designed to:
Strengthen the application of the principle of equal pay
Improve transparency of pay-setting and pay progression
Enable workers to exercise their right to information
Reduce unjustified gender pay differences
Under the Directive, Member States must require employers to assess and compare pay for categories of workers performing the same work or work of equal value, based on objective and gender-neutral criteria.
Employers must use objective, gender-neutral criteria —such as skills, effort, responsibility and working conditions — to assess whether work is of equal value. These criteria must be applied consistently across the organisation.
Employers must provide information on initial pay or pay range to job applicants prior to employment. Employers may not ask candidates about their pay history.
Workers have the right to request information on:
Their individual pay level
The average pay levels, broken down by sex, for categories of workers performing the same work or work of equal value
Employers must also explain the criteria used to determine pay levels and pay progression.
Employers meeting defined employee thresholds must report on:
Gender pay gaps in base pay
Median gender pay gap
Gender pay gap in bonus payments
Proportion of employees receiving bonuses
Proportion of employees receiving variable pay components
Country-specific legislation defines the reporting obligations under the Pay Transparency Directive in more detail
Where a reported gender pay gap exceeds 5%, cannot be justified by objective and gender-neutral criteria, and persists over time, employers must carry out a joint pay assessment in cooperation with workers’ representatives.
In cases of alleged pay discrimination, the burden of proof lies with the employer, making documented evaluation methods and decision logic essential.
gradar provides a structured system that supports the Directive’s emphasis on objectivity, consistency and explainability.
Analytical, point-factor-based job evaluation grounded in gender-neutral criteria supports consistent definitions of work of equal value.
Clear job levels, job families and role definitions support the creation of categories of workers for comparison and reporting purposes.
Pay analysis is grounded in evaluated job data rather than job titles alone, supporting transparent identification of pay differences.
Centralised documentation of job evaluation outcomes and pay structures supports consistent responses to right-to-information requests and repeatable reporting.
Guidelines, directives & best practices for achieving pay transparency.
Reporting, pay equity analysis & gender pay gap tools - all in one place.
The EU Pay Transparency Directive places structure and clarity at the centre of fair pay practices. gradar is the platform you can trust to help build and maintain this foundation.
Job evaluation
Compensation
Pay transparency