Frequently Asked Questions
What is the EU Pay Transparency Directive and when does it take effect?
The EU Pay Transparency Directive, effective from June 2026, will require employers to provide more detailed information—both internally and externally—about the factors determining pay decisions, pay levels, and pay gaps for roles of equal value. See the full list of employer obligations here (https://eu1.hubs.ly/H0ckRB60).
Why should I care about the Directive now?
The Directive applies to all companies in the EU (though requirements differ by company size). Compliance may require significant changes to your pay practices, therefore it is important to identify problems as soon as possible.
How does pay transparency help my company?
Pay transparency is a major factor in employee satisfaction and trust—it directly impacts morale, engagement, and retention. Complying with the Directive not only demonstrates a commitment to pay fairness but also avoids the reputational risk and financial penalties of non-compliance.
How difficult is it to comply?
This depends on your current set-up. The Directive requires evaluating jobs using clear, objective criteria and reporting on pay for roles of equal value. 1) If you already have a solid job architecture—with jobs evaluated using objective criteria like skills, effort, and responsibility, consistent pay practices, and a system to track pay gaps—compliance should be straightforward. 2) If you currently lack structured job evaluations or job levelling, make pay decisions on a case-by-case basis, and don’t track pay gaps, there’s work to be done. You’ll need to create a job framework and evaluation process to meet the requirements of the Directive.
What is included in your Pay Transparency Readiness Check-up?
This includes a free 30-minute consultation to evaluate your current pay practices, policies, and processes. After the interview, we provide you with a custom action plan, identifying steps to align with EU pay transparency requirements and a timeline to help you meet those goals. You can invite others from your team to join this call if you would like.
What is a Transparency-Ready Job Architecture & Pay Gap Audit?
This involves building a job evaluation framework for your organisation, including job levels, families, and salary bands. This framework enables you to track and report on your pay practices as required under the upcoming EU legislation. More information on how to do this can be found here: https://skillstrust.org/resources/preparing-for-the-eu-pay-transparency-directive-what-does-a-compliant-job-levelling-framework-look-like
How long does it take to create a job architecture?
Typically, this takes up to 30 days from receiving the required job documentation and pay data. This timeline allows us to carefully analyse, structure, and build a framework that meets compliance standards.
How does the Pay Gap Audit work?
The Pay Gap Audit is a practice run for the pay gap reporting required by the EU Pay Transparency Directive. It assesses pay gaps by job category based on your job architecture. According to the Directive, pay gaps in each job category must be under 5% or resolved by the employer within 6 months. The audit checks if your pay gaps fall within this limit. It concludes with a report that highlights any risks, analyses root causes, and provides suggested actions.
How do you ensure the confidentiality of our data?
We take data privacy seriously. SkillsTrust is fully GDPR compliant, using anonymised data wherever possible and following best practices to minimise data usage. We prioritise confidentiality and ensure that all insights are securely processed.
Can you help consult with our internal stakeholders?
Yes, we offer managed support for consultation with internal stakeholders, helping you communicate findings, align on action steps, and foster buy-in throughout your organisation.
