Denmark's Draft Pay Transparency Law: What Employers Need To Know

On 26 February 2025, Denmark published draft legislation implementing the EU Pay Transparency Directive, setting out how pay transparency and gender pay gap reporting rules will apply to employers operating in Denmark.

Based on the current draft, it appears that Denmark has taken a measured approach instead of directly transposing the Directive which could lead to practical implications for employers operating in Denmark. We highlight the key elements and divergences arising from the Danish proposal.

The EU Pay Transparency Directive, adopted in 2023, introduces new obligations on employers across the EU including pay transparency in recruitment, employee rights to pay information, and mandatory gender pay gap reporting.