Employee Benefits Transparency

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EU Pay Transparency Directive – Benefits Transparency

Guide to the EU Pay Transparency Directive – Benefits Transparency

Time is running out for employers to prepare for the new European Union (the “EU”) Pay Transparency Directive (the “Directive”).
This landmark legislation aims to address the enduring 13 percent average gender pay gap across the EU, requiring employers to analyse, report and address gaps within their organisations. Each EU Member State has until 7 June 2026 to transpose the Directive into local law, and employers anywhere in the globe with more than 150 employees in a Member State must get ready to deliver their first pay transparency report from 2027 onwards. Employers with 100-149 employees must deliver their first report by 7 June 2031. Between now and that deadline, there is a lot that employers can and need to do to prepare.

Crucially, the requirements of the Directive go beyond salary alone. Bonuses and employee benefits (such as pensions and private medical insurance) are also included. This means that organisations should also understand to what extent bonuses, pensions and other benefits such as health programmes impact the pay gap in a country.

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The EU Pay Transparency Directive reinforces equal pay for equal work and addresses gender pay gaps. Aon’s guide helps organisations understand the Directive's implications and provides a roadmap for pay transparency readiness.

Adithi Jagannathan
Head of Employee Rewards, Talent Solutions, United Kingdom

Download this guide to learn more about:

  1. How your firm can prepare for regional regulations related to pay transparency today.
  2. What the EU Pay Transparency Directive means for benefits and rewards.
  3. How organisations can identify and reduce pay gaps caused by benefits, including the current challenges in reporting benefits cost.
  4. How the design of benefits and total reward strategies can become more robust and well-positioned for future compliance.

19%

of organisations consider themselves ready for pay transparency

Source: Aon’s 2025 Global Pay Transparency Study