EU Pay Transparency Directive Also Impacts Benefits

Under the EU directive, "pay" also includes benefits and must be included in pay equity analyses.

Since the European Parliament earlier this year approved the Pay Transparency Directive, employers have been learning the new rules and preparing to respond to its requirements. Few however have considered that the directive also relates to employee benefits. Benefits can impact the pay gap, and therefore employers should start assessing their benefits now.

Employers worldwide are increasingly focused on addressing diversity, equity and inclusion (DEI). Company values, employee expectations and investors' views are just some of the drivers. Legislation, and particularly legislation focused on transparency, is playing an important role in accelerating focus and progress on DEI.