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ARTICLE · 20 NOVEMBER 2023

Pay Transparency In The EU: It's Time To Prepare

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On 10 May 2023, the EU adopted a new Directive to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay...

European UnionEmployment and HR
Inger Verhelst (Claeys & Engels)
Inger Verhelst (Claeys & Engels)
Didier Houttequiet (Claeys & Engels)
Didier Houttequiet (Claeys & Engels)

15 November is European Equal Pay Day. To mark the occasion, we take a look at the EU's Pay Transparency Directive, passed earlier this year. What will it mean for businesses? And what can employers do now to prepare for implementation in 2026?

Background

On 10 May 2023, the EU adopted a new Directive to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms (the Pay Transparency Directive). The principle of equal pay was the first human rights principle to be included in the EU Treaties, since its inclusion in the Treaty of Rome in 1957. Despite its long history, however, pay discrimination remains a reality in the EU. According to Eurostat, the gender pay gap in the EU was still 12.7% in 2021. That is why the Pay Transparency Directive introduces new rights and obligations for employees and employers to ensure pay equality. This article explores

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