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EU Pay Transparency Directive: key timelines and obligations

The EU Pay Transparency Directive (2023/970) introduces new requirements on pay transparency and gender pay gap reporting across the EU.
Adoption and transposition
– The Directive was adopted in 2023
– EU Member States must transpose it by 7 June 2026

From 7 June 2026 (assuming the Member State implements the Directive):
– The Directive will apply to all employers
– Pay transparency obligations apply regardless of company size
– This includes pay transparency prior to employment (for job applicants)
– And transparency for employees during employment.

Gender pay gap reporting:
– Starts in 2027 for employers with 150+ employees
– Smaller employers will follow in later phases
Takeaway: Pay transparency is becoming a core compliance obligation across the EU, and companies should begin reviewing pay structures and policies now.