EU Pay Transparency: What Pay Data Will Employees Gain Access To?

The EU Pay Transparency Directive, effective from June 2026, aims to close the gender pay gap across Europe. It introduces new rules that require companies to be more transparent about how they determine pay, ensuring equal compensation for employees performing the same or equivalent work. These changes will empower employees with the information needed to understand and challenge any unjustified pay disparities. Notably, the directive also shifts the burden of proof to the employer in any pay transparency claim.

So, as an HR leader in the EU, what new pay-related information will your employees gain access to? 

Employees will know the starting pay or pay range for a new role before interview 

If someone applies for a new position within your company, you will need to disclose salary ranges upfront, either in the job ad or ahead of the interview process. Take a look at this article to see how early adopter member states intend to transpose these requirements into local legislation.

Why it matters: candidates will know upfront whether it’s worth their time to interview based on the salary. It also means your managers will need to be able to accurately assess starting pay and make offers on the basis of skill and experience in comparison to others in the role.

You won’t be able to ask about a candidate’s salary history 

As part of the directive, employers can no longer ask a candidate for their current or previous salary during the hiring process. This change is designed to ensure that past salary inequities do not follow employees into new roles, and that pay decisions are based on the role's value, not your past compensation.

Why it matters: this means you’ll need to be clear about why people are paid what they’re paid for their role. Decisions must be based on gender-neutral reasons - like skills and experience - rather than previous salary.

For full information on pay transparency requirements prior to employment, see Article 5 of the directive.

Employees will receive information about how their pay is determined

Under the new rules, you must provide clear information on how pay decisions are made, including the criteria used for setting salaries and pay progression.

Why it matters: pay decisions can no longer feel like a black box. You’ll need to be able to explain which factors are influencing employees’ pay and how they can progress their pay.

Article 6 of the directive lays out obligations related to transparency of pay setting and pay progression policy.

They’ll know the average pay for men and women in their job category

One of the most powerful rights under the directive is the ability for employees to request information from their employer about the average pay of men and women in their job category (i.e. roles equivalent to theirs). This will help them see where their salary falls in relative terms and whether it aligns with what others are earning for equivalent work.

Why it matters: knowing the average pay for men and women gives employees valuable information when negotiating their salary and allows them to identify any unexplained pay gaps.

Employees will be notified annually of their information rights

Make a note in your calendar to notify your people, each year,  about their rights under the pay transparency rules, including the right to request pay information. This ensures that all employees are aware of their rights and can easily access pay data if needed.

Why it matters: this annual reminder keeps pay transparency front of mind and could prompt more employees to submit data requests.

See Article 7 of the Directive for full details of employee information rights.

Employees can see your company’s public pay gap reporting 

For companies with over 250 employees, employers will need to publish annual gender pay gap reports. Companies with 100-150 employees will need to publish every three years. Pay gap reporting is carried out at the level of the job category. The pay gap in each job category must be below 5% unless there is objcetive justification for a higher gap.

While this reporting is anonymised, it will give your people insight into whether your organisation is addressing pay disparities.

Why it matters: it holds your company accountable, and employees and potential new hires can see if pay gaps are being closed.

What if there’s a pay gap? 

It is a good idea to run a DIY pay gap audit now ahead of the effective date to understand whether your company has unjustified pay gaps. If your audit shows an unexplained pay gap of more than 5% in any job category, you must investigate the reasons for the gap and remedy it. An unexplained gap is one that can’t be justified by objective factors such as skills, responsibilities, effort, or working conditions. Once the EU Directive comes intro effect, any unjustified gaps greater than 5% will need to be remedied within six months of reporting or a joint pay assessment with employee representatives will be required.

Why it matters: understanding your level of risk is key. There’s a lot of work to ensure compliance, so start preparing now to ensure you can identify unjustified pay gaps and act.

Employers must prove equal pay

Under the new rules, the burden of proof shifts to employers in cases of pay discrimination. If there is a claim of unequal pay, you must demonstrate that the difference in pay is justified by objective criteria rather than gender or other discriminatory factors.

Why it matters: this makes it a lot easier for employees to challenge unfair pay practices. You’ll need to have carried out effective pay transparency work that meets EU and local legislation to reduce the risk of claims. 

Conclusion

The EU Pay Transparency Directive gives employees more insight and control over their pay, helping ensure fairness in the workplace. With access to information including the average pay for men and women in the same job category, starting salary ranges for specific roles, pay and pay progression criteria, and the ability to challenge disparities, your people will be a lot better equipped to make equal pay claims.

The key to reducing your company’s risk is to run the calculations and see if you need to address any unjustified gaps. So, get started with our DIY toolkit today or contact us if you would like additional expertise.