If your job involves hiring, paying, or explaining pay (bonjour HR and Comp teams), the deadline for the EU Pay Transparency Directive is rolling in faster than the Eurostar between London and Paris. You have until June 7, 2026. Less than a year.
Like Eurovision, every country will have its own twist, and the judges (aka the regulators) will be watching closely. And yes, some performers (Buongiorno, your pay data) may need a remix before going live. Your employees and prospective employees are ready to cast their votes.
The good news? Even with some details still TBD, you don’t need to panic or book a one-way ticket out of the EU. With some preparation now, you can avoid the dreaded “nil points” and shine when transparency takes the stage.
Here’s how you can get started preparing for the EU Pay Transparency Directive sooner rather than later.
Step #1: Figure out where this hits you: EU coverage and and country-specific rule changes
First things first: where do you have employees in the EU? Which EU offices will be covered? How many employees do you have in each EU member state?
Countries will roll this out in different ways, so don’t assume a one-size-fits-all approach. Keep a running list of deadlines and local rules so you’re not scrambling later.
Bonus tip: know who to reach out to for questions about each individual country's laws. Do you need to keep your European employment counsel on speed dial for each country where you have employees? Do you partner with an organization like Trusaic (see more on our partnership with them below)? Have a plan and a rolodex of folks who can help.
Step #2: Clean up your compensation data (yes, all of it)
Think of it like spring cleaning for your HRIS.
- Collect and centralize salaries, bonuses, allowances, and benefits
- Build (or fix) your job architecture: clear roles, levels, grades, and “equal value” groupings
- Document how pay decisions are made and what criteria you use
Head’s Up: job architecture is likely the heaviest lift in preparing for the EU Pay Transparency Directive.
Without it, you can’t run meaningful pay equity analyses, respond to employee requests for pay, or explain differences with confidence. It takes time, cross-functional alignment, and good software. But cleaning up your compensation data right now will save you endless headaches later.
Trust me, your future self will thank you.
Step #3: Do a pay equity analysis, now. Yes, now.
Run your pay equity analysis now. Where do you see any gender pay gaps? Are there any anomalies? Can you explain them?
The EU Pay Transparency Directive sets a minimum standard: any pay gap wider than 5% needs to be explained. If you can’t explain it, and you can’t close it for 6 months, you’ll have to conduct a joint pay assessment with work councils to find a way to fix it.
But remember, that’s just the EU-wide floor. Individual countries may set stricter thresholds, add extra reporting requirements, or shorter timelines.
Addressing these gaps early gives you the option to close them now if you can, or build them into future budgets and workforce planning to reduce disparities over time. This is particularly important before reporting deadlines kick in.
Either way, getting ahead means you’re not rushing later when regulators (or your own employees) inevitably turn on the floodlights.
Step #4: Budget for remediation
After running your pay equity analysis, you may find some gaps you can’t justify. Don’t ignore them. Here’s how you can tackle them.
- Prioritize big pay gaps: any gap greater than 5% is a big red flag under the EU Pay Transparency Directive. Remember, this is the floor. Individual countries may be stricter, so don't wait.
- Set aside budget now: closing gaps often means adjusting pay and your compensation strategy. If you don’t plan for it, you’ll be stuck scrambling when the reporting deadline arrives.
- Plan how to close those gaps: not every gap has to be closed overnight, and maybe you can’t afford to close them in one go. But, you do need a credible, documented plan that shows how you’ll address disparities over time.
- Document everything: regulators (and employees) will expect clear, objective reasons for how you closed any pay gaps or why a differential is justified. Remember, under the EU Pay Transparency Directive, the burden is on you, not the employee.
Bottom line: treating remediation as optional is like walking on stage at Eurovision without rehearsing — you’re guaranteed a “nil points.” Start budgeting now so you can close gaps with confidence instead of panic.
Budgeting tip: don’t blow your budget all at once. Be creative. Maybe phase remediation into existing merit cycles, promotion reviews, or annual comp adjustments. This spreads the cost, keeps internal equity in balance, and avoids chaos and confusion in the workplace.
Step #5: Audit your hiring habits: pay transparency and salary ranges
Time to give your recruiting playbook a makeover. This is an easy step you can take today.
- Ditch salary history questions: they’ll be banned under the EU Pay Transparency Directive, and honestly, they skew pay equity anyways.
- Start posting salary ranges: even if your country hasn’t made it law yet, it’s only a matter of time. And even if it never becomes law, Payscale has a lot of evidence that it improves the hiring process with better suited candidates.
- Check your job postings: are your titles, languages, or “requirements” accidentally biased? Are your jobs and job posting gender neutral?
Step #6: Kill the "pay secrecy" rules
If your employment contracts or employment policies still ban employees from talking about their pay, it’s time to delete them.
Under the EU Pay Transparency Directive, employees can share, compare, and ask about pay. And employers can’t stop them.
Step #7: Upgrade your systems
Imagine being asked, “what’s the average pay for women in Director-level roles?” and being able to answer in 10 seconds. That’s the goal. Get your HRIS and comp tools ready for reporting, requests, and audit trails.
Each EU country is still working to turn the EU Pay Transparency Directive into national law, and many will add their own requirements on top of the EU minimum standards.
With so much up in the air, you probably need some guidance.
That's why we have an exclusive partnership with Trusaic, the leading pay equity technology firm with ample experience helping organizations tackle international pay equity compliance. Trusaic gives organizations the confidence to identify and fix gender pay gaps.
At the risk of sounding like a broken record, you can't afford to wait.
Some countries like Belgium (Wallonie-Bruxelles), Ireland, the Netherlands, Poland, Sweden, Finland, Malta (and many others) have begun drafting or passing local measures. June 7, 2026, is coming quickly, and the window to comply is closing.
The good news is that you don’t need to delay. Many of the important steps, like cleaning up your data, building a job architecture, planning for remediation, and setting up processes can be done now. If you start early and get the basics right, you will be in a much stronger position when the spotlight turns on.
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