A summary

The key minimum requirements of the Directive are set out below. Some divergence to potentially go above these minimum requirements is expected during local implementation.

Implementation of the Directive

  • EU member states have until 7 June 2026 to transpose the Directive into their national legal systems. A number of countries have already commenced this process
  • Individual rights will apply immediately on local laws coming into effect, while reporting obligations will come into effect later (timing and frequency depending on size of the company)

Applicable workers

  • The Directive applies to workers who have an employment contract/employment relationship, as defined by law/collective agreements/practice in each Member State

Obligations during recruitment

All employers (regardless of size) will:

  • be prohibited from asking candidates about their pay history with current or former employers
  • be required to provide candidates (e.g. in a job vacancy notice) with information about
  1. the initial pay or pay range for the role, based on objective, gender-neutral criteria
  2. where applicable, the relevant provisions of the collective agreement applied by the employer in relation to the position

Employee information rights

  • All employers will be required to make easily accessible to workers information about the criteria (which must be objective and gender neutral) used to determine:
  • pay
  • pay levels
  • pay progression (Member States may exempt employers with fewer than 50 workers from this requirement)
  • Workers shall have a right to request and receive information on average pay for their category of work (for workers doing the same work or work of equal value), broken down by sex
  • Workers may request reasonable clarifications of the information provided
  • Workers must receive an annual notice reminding them of their right to information
  • Information must be provided within a reasonable period once requested (but in any event within two months from the date on which the request is made)
  • Contractual terms that restrict workers from disclosing information about their pay will be prohibited

Reporting obligations

  • All employers with 100 or more workers will have reporting requirements, with the timing and frequency of reporting depending on the size of workforce:
  • Employers with 250 or more workers must report by 7 June 2027 and do so annually thereafter
  • Employers with 150-249 workers must first report by 7 June 2027 but thereafter need only do so every three years
  • Employers with 100-149 workers must first report by 7 June 2031 but thereafter need only do so every three years
  • Reports must cover information relating to the previous calendar year
  • Reports must include:

a) mean gender pay gap salary b) mean gender pay gap in complementary or variable pay c) median gender pay gap salary d) median gender pay gap in complementary or variable pay e) the proportion of female and male workers receiving complementary or variable pay f) the proportion of female and male workers in each quartile pay band g) the gender pay gap by categories of workers broken down by ordinary base pay and complementary or variable pay

  • The Report’s accuracy must be confirmed by the employer’s management, after consulting with workers’ representatives
  • Reports must be sent to the authority in charge of compiling and publishing the data
  • Employers may publish a) to f) information on its website/another manner
  • Information at g) must be provided to all workers and workers’ representatives

Joint pay assessments

  • Employers are under an obligation to conduct a joint pay assessment obligation where 3 conditions are met:
  1. there is a pay gap of 5% or more in any category of workers
  2. such a difference cannot be objectively justified by reference to gender neutral reasons; and
  3. the employer has not put right the unjustified difference within 6 months of reporting it
  • The joint pay assessment must:
  • be conducted in cooperation with workers’ representatives
  • be made available to all workers and workers’ representatives and communicated to the monitoring body. It must also be made available to the labour inspectorate and the equality body upon request
  • The assessment must include:

a) an analysis of the proportion of female and male workers in each category of workers

b) information on average female and male workers’ pay levels and complementary or variable components for each category of workers

c) any differences in average pay levels between female and male workers in each category of workers

d) the reasons for such differences in average pay levels, on the basis of objective, gender-neutral criteria, if any, as established jointly by the workers’ representatives and the employer

e) the proportion of female and male workers who benefited from any improvement in pay following their return from maternity or paternity leave, parental leave or carers’ leave, if such improvement occurred in the relevant category of workers during the period in which the leave was taken

f) measures to address differences in pay if they are not justified on the basis of objective, gender-neutral criteria

g) an evaluation of the effectiveness of measures from previous joint pay assessments

The assessment must lead to measures to remedy the unjustified differences within a reasonable period.

Enforcement

  • National legislation will govern enforcement. There must be ‘real and effective’ compensation
  • When workers establish facts from which it may be presumed that there has been direct or indirect discrimination, it will be for the employer to prove that there has been no direct or indirect discrimination in relation to pay (a shift in the burden of proof)
  • Equality bodies and other representative groups may bring claims on behalf of, or in support of, workers
  • The limitation period for equal pay claims must be no less than 3 years
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