EU Pay Transparency Directive Guide

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EU Pay Transparency Directive Guide

EU Pay Transparency Directive Guide

The EU Pay Transparency Directive mandates that by the second half of 2027, employers with over 100 employees in any EU Member State must submit their first report on pay transparency, which aims to ensure equal pay for equal work and address gender pay gaps.

Aon has created this guide to help businesses prepare for the EU Pay Transparency Directive by providing comprehensive support for compliance and highlighting the wider business advantages of pay equity and transparency. This guide explores the necessary steps for businesses to take, from understanding the regulations to implementing robust frameworks and developing effective communication strategies.

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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
Human Capital Solutions Advisory Partner, UK

Download the guide to learn more about:

  1. Directive Implementation: Employers with more than 100 employees in any EU Member State, including non-EU businesses, must comply with the Directive by the second half of 2027.
  2. Core Principles: The Directive mandates identifying and addressing gender pay gaps, ensuring equal pay for equal work, and eliminating pay secrecy clauses.
  3. Reporting Requirements: Employers must report gender pay gaps across the company and within job categories, and work on action plans to correct unjustified pay gaps of 5% or more.
  4. Compliance Timeline: Member States have until 7 June 2026 to transpose the Directive into national law, and employers should start preparing immediately for compliance.
  5. Benefits of Compliance: Complying with the Directive can help businesses create fairer reward policies, enhance DE&I strategies, and improve talent management.

13%

Average pay gap across the EU.