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ARTICLE · 02 SEPTEMBER 2024

Understanding The EU Pay Transparency Directive

Jackson Lewis P.C.
Jackson Lewis P.C.
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Jackson Lewis P.C.

Jackson Lewis P.C.

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At one time largely a U.S. concern, pay equity and transparency have rapidly become globally important to all multinational companies wherever headquartered. The EU Pay Transparency

United StatesEmployment and HR

At one time largely a U.S. concern, pay equity and transparency have rapidly become globally important to all multinational companies wherever headquartered. The EU Pay Transparency Directive is a milestone adopted with clear objectives: closing the gender pay gap and making it easier to bring equal pay claims.

The 24 Member States have until June 7, 2026, to implement the Directive into their own law. Businesses should begin taking appropriate action now to ensure compliance. Powerful enforcement mechanisms back the Directive's new reporting requirements.

The Directive came into force on June 7, 2023, introducing new employer obligations:

  1. Disclose salaries at recruitment.

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