The EU Pay Transparency Directive (2023/970) requires all employers to state the starting pay or range before hiring, stop asking about pay history, make pay criteria accessible and answer workers’ requests for pay information. Employers with 100 or more workers report their gender pay gap: from 250 workers every year and from 150 every three years, both starting in June 2027, and from 100 workers from 2031. An unexplained gap of 5% or more leads to a joint pay assessment.
What the directive is
Directive (EU) 2023/970 strengthens the right to equal pay for women and men for the same work or work of equal value. It does that through pay transparency: employers have to be open about pay before and during employment, and larger employers report their gender pay gap. Member States had to put it into national law by 7 June 2026.
Most did not make that deadline. By October 2026, Italy (Legislative Decree 96/2026, in force since 7 June 2026), Malta, Slovakia and Lithuania had completed it. Poland has applied the recruitment rules since 24 December 2025 and has a bill for the rest. The Netherlands, Germany, France and Spain have bills or drafts in progress. The obligations below reach employers through their national law, so the exact dates and details depend on the country.
Rules for every employer, whatever its size
Most of the directive applies to all employers in the public and private sector, not only large ones.
- Before hiring: tell candidates the starting pay or its range, in the job advert or before the interview, and do not ask what they earn now or earned before.
- Pay setting: make the criteria used to set pay, pay levels and pay progression easy for workers to find. They must be objective and gender-neutral. Member States may exempt employers with fewer than 50 workers from the progression part.
- Right to information: workers can ask for their own pay level and the average pay levels, by sex, of workers doing the same work or work of equal value. The employer answers within two months and reminds workers of this right every year.
- No pay secrecy: contract terms that stop workers from disclosing their pay are not allowed.
Gender pay gap reporting by company size
Employers with 100 or more workers report their gender pay gap to a national monitoring body. Employers with 250 or more report every year, starting by 7 June 2027 for 2026. Employers with 150 to 249 also start by 7 June 2027, then report every three years. Employers with 100 to 149 start by 7 June 2031, then every three years. The report covers:
- The mean and median gender pay gap.
- The mean and median gap in complementary or variable pay, such as bonuses.
- The share of women and men receiving complementary or variable pay.
- The share of women and men in each quarter of the pay distribution.
- The gap by category of workers doing the same work or work of equal value, split into basic pay and complementary or variable pay.
The joint pay assessment
If the report shows a difference in average pay between women and men of at least 5% in any category of workers, the employer cannot justify it with objective, gender-neutral criteria, and has not corrected it within six months, the employer carries out a joint pay assessment with the workers’ representatives. It analyses the causes and sets measures to remove unjustified differences.
Enforcement
A worker who claims pay discrimination no longer has to prove it alone: where the employer did not meet its transparency duties, the burden of proof shifts to the employer. Workers can claim full compensation, including back pay and bonuses, and Member States set fines. Equality bodies and workers’ representatives can act on behalf of workers.
Preparing now
The hardest part is not the calculation but the groups: deciding which jobs are the same work or work of equal value, based on skills, effort, responsibility and working conditions. Start there. Then collect a full year of pay data per worker, including bonuses, allowances and benefits in kind, calculate the gap per category, and look at every difference of 5% or more before you have to report it.
Doing it in Greener Ahead
Greener Ahead is not a payroll system and does not file pay gap reports with the authorities. Sustainability reporting in Greener Ahead prepares a VSME report, which includes the gender pay gap where the law already requires you to report it, next to your other workforce figures. It costs €995 per year with unlimited users, and you can try it free for 14 days without a card. Check the pricing page for current details.
Pay gap reporting at a glance
When each employer reports, under the directive.
| Workers | First report | Then |
|---|---|---|
| 250 or more | By 7 June 2027, on 2026 | Every year |
| 150 to 249 | By 7 June 2027, on 2026 | Every three years |
| 100 to 149 | By 7 June 2031, on 2030 | Every three years |
| Fewer than 100 | Not required by the directive | Member States may require it |
Steps to get ready
A workable order before the first report.
- Add the starting pay or range to every job advert and remove pay history questions from interviews.
- Write down the criteria for pay levels and progression and make them available to workers.
- Group jobs into same work or work of equal value using skills, effort, responsibility and working conditions.
- Calculate the mean and median gap per group from a full year of pay data, including bonuses and allowances.
- Explain every difference of 5% or more with objective criteria, or correct it.
Sources and scope
- EUR-Lex: Directive (EU) 2023/970 on pay transparency
- Normattiva: Legislative Decree 96 of 7 May 2026 on pay transparency
- European Commission: equal pay and pay transparency
These resources explain a preparation workflow. Check your selected standard and recipient requirements before sharing your report.
Joost ThissenFounder
