Pay Transparency Directive: New Employee Rights To Pay Information

The impact of the new Pay Transparency Directive extends beyond gender pay gap reporting. Alongside requiring employers to report gender pay disparities, it also grants employees new rights to information about pay. Employers need to start preparing for much greater openness.

Employees in the EU will soon be entitled to information about pay before applying for a role, to details of how their employer sets pay, and to data about what those performing work of equal value to them are being paid.

In this article, we take a closer look at the new rights to pay information created by the EU Pay Transparency Directive.

Which employers are in scope of these new rights?

The Directive will apply to all employers in the EU. The gender pay gap reporting requirements will only apply to employers above certain headcount thresholds. The pay information requirements, however, will for the most part apply to all employers, whatever their size.