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It became EU law in 2023, but EU member states have until 2026 to transpose the Directive into local law.",[1166],{"start":1167,"end":1168,"type":586,"data":1169},21,50,{"link_type":588,"url":1170,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Fthe-time-to-prepare-is-now-eu-pay-transparency-directive",{"type":306,"text":1172,"spans":1173,"direction":309},"As expected, different jurisdictions are at different places in the transposition process. In addition, they are all starting from different points: some nations already have existing pay equity and\u002For pay transparency laws in place, while others may only have broad anti-discrimination legislation.",[],"article_text$34385aee-3a3c-46e9-b910-417dbe2c5fd9",{"variation":689,"version":690,"items":1176,"primary":1177,"id":1201,"slice_type":1202,"slice_label":5},[],{"section_id":5,"image":1178,"content":1184,"link_url":1196,"link_label":1199,"background_color":1200},{"dimensions":1179,"alt":1180,"copyright":5,"url":1181,"id":1182,"edit":1183},{"width":565,"height":566},"graphic with a booklet image and a green background","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ1mh3JbqstJ98VFE_beqom_Checklist_PrismicBanner.jpg?auto=format,compress","Z1mh3JbqstJ98VFE",{"x":571,"y":571,"zoom":572,"background":573},[1185,1188],{"type":757,"text":1186,"spans":1187,"direction":309},"Do you have your 2026 EU Directive compliance plan ready?",[],{"type":306,"text":1189,"spans":1190,"direction":309},"We’ve put together a 6-Step Readiness Checklist that breaks down the Directive's requirements into action items to help you ensure every strategic step is covered before the deadline.",[1191,1193],{"start":1192,"end":813,"type":580},20,{"start":1194,"end":1195,"type":580},28,47,{"link_type":588,"key":1197,"url":1198},"c9c7ef6f-2c92-4f40-a30e-05a7ee0d7077","https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Feu-pay-transparency-directive-readiness-checklist","Download the free checklist","Beige","article_image_and_text$c52e3484-1dbf-4a13-9808-1fe8011c13c5","article_image_and_text",{"variation":689,"version":690,"items":1204,"primary":1205,"id":1214,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":1206,"text_size":1212,"background_color":1213},[1207],{"type":306,"text":1208,"spans":1209,"direction":309},"We’ve created this page to keep track of transposition activity at the jurisdiction level. We’ll keep it updated regularly as the EU member states continue on their journeys towards full legal implementation of the Directive.",[1210],{"start":813,"end":1211,"type":580},63,"Large","Green","article_text$c3e7e704-b1b6-4bba-b185-32c704710f92",{"variation":689,"version":690,"items":1216,"primary":1217,"id":1886,"slice_type":1887,"slice_label":5},[],{"introduction_text":1218,"heading_map_legend":1222,"country_list":1223},[1219],{"type":695,"text":1220,"spans":1221,"direction":309},"EU Pay Transparency Directive transposition activity by member state",[],"Transposition Stage",[1224,1244,1301,1316,1328,1348,1373,1403,1421,1442,1472,1494,1506,1518,1548,1580,1600,1628,1640,1667,1721,1746,1767,1787,1810,1822,1844],{"euptd_page":1225,"country_code":1226,"stage":1227,"member_state":1228,"status":1229,"draft_legislation":1238,"final_legislation":1238,"effective_date":1239,"resources":1243},{"link_type":31},"at","Low or no activity","Austria",[1230],{"type":306,"text":1231,"spans":1232,"direction":309},"As of our most recent update, there is no known transposition activity in Austria. However, the country has current legislation in effect. The existing legislation requires employers with over 150 employees to provide employees with a pay report.",[1233],{"start":1234,"end":1235,"type":586,"data":1236},108,127,{"link_type":588,"url":1237,"target":1078},"https:\u002F\u002Fwww.bundeskanzleramt.gv.at\u002Fen\u002Fagenda\u002Fwomen-and-equality\u002Fgender_equality_in_the_labour_market\u002Fpay_transparency.html","No",[1240],{"type":306,"text":1241,"spans":1242,"direction":309},"TBC",[],[],{"euptd_page":1245,"country_code":1246,"stage":1247,"member_state":1248,"status":1249,"draft_legislation":1279,"final_legislation":1279,"effective_date":1280,"resources":1284},{"link_type":31},"be","Full or partial transposition","Belgium",[1250,1253,1256,1259,1262,1266,1269,1273,1276],{"type":306,"text":1251,"spans":1252,"direction":309},"A motion for a resolution was submitted to the Belgian Chamber of Representatives on January 2026, regarding the implementation of the European Union Directive on pay transparency (Directive (EU) 2023\u002F970).\nMain points in the proposal:",[],{"type":800,"text":1254,"spans":1255,"direction":309},"Avoid \"gold-plating\": Not create new legislation that goes beyond the strict requirements of the EU Directive.",[],{"type":800,"text":1257,"spans":1258,"direction":309},"Legislative adjustments: Limit actions in the private sector to minor textual changes to existing social laws while extending pay transparency to all federal public employment following the example of the Flemish draft.",[],{"type":800,"text":1260,"spans":1261,"direction":309},"Screen administrative burdens: Propose a thorough screening of increasing administrative burdens at the informal European summit on February 12, 2026, to protect business competitiveness.",[],{"type":306,"text":1263,"spans":1264,"direction":309},"French Community of Belgium",[1265],{"start":571,"end":813,"type":580},{"type":306,"text":1267,"spans":1268,"direction":309},"In September 2024, this region, also known as the Wallonia-Brussels Federation or Fédération Wallonie-Bruxelles, became the first EU jurisdiction to transpose the EU Pay Transparency Directive into law.",[],{"type":306,"text":1270,"spans":1271,"direction":309},"Flanders",[1272],{"start":571,"end":770,"type":580},{"type":306,"text":1274,"spans":1275,"direction":309},"In late 2025, the Flemish government published a draft decree partially transposing the Directive for the public sector.",[],{"type":306,"text":1277,"spans":1278,"direction":309},"Additionally, Belgium has other pay equity and transparency legislation in effect. The required annual audit, which companies are required to send to the National Bank, must include the pay difference between men and women. Companies with 50 or more employees also need to submit a more detailed pay structure analysis every two years.",[],"Yes, but partial",[1281],{"type":306,"text":1282,"spans":1283,"direction":309},"January 1st, 2025",[],[1285,1293],{"type":306,"text":1286,"spans":1287,"direction":309},"We go into Belgium's transposition activity in more depth in this article, including updates on the French Community.",[1288],{"start":1289,"end":1290,"type":586,"data":1291},11,73,{"link_type":588,"url":1292,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Fbelgium-pay-equity-laws-eu-pay-transparency-directive",{"type":306,"text":1294,"spans":1295,"direction":309},"For updates on the Flemish Region, see this article.",[1296],{"start":1297,"end":1298,"type":586,"data":1299},39,51,{"link_type":588,"url":1300,"target":1078},"https:\u002F\u002Fwww.linkedin.com\u002Fpulse\u002Feu-pay-transparency-flanders-takes-partial-action-beqom-emyje\u002F?trackingId=ZwoFAgFjRIiL7i%2F1wl7Atw%3D%3D",{"euptd_page":1302,"country_code":1303,"stage":1304,"member_state":1305,"status":1306,"draft_legislation":1310,"final_legislation":1238,"effective_date":1311,"resources":1315},{"link_type":31},"bg","On track","Bulgaria",[1307],{"type":306,"text":1308,"spans":1309,"direction":309},"In May 2026, Bulgaria published a draft law to implement the Directive, which is open for consultation until June 2nd. This small window reflects the country's aim to adhere to the Directive's deadline of June 7th, 2026.",[],"Yes",[1312],{"type":306,"text":1313,"spans":1314,"direction":309},"June 7th, 2026",[],[],{"euptd_page":1317,"country_code":1318,"stage":1227,"member_state":1319,"status":1320,"draft_legislation":1238,"final_legislation":1238,"effective_date":1324,"resources":1327},{"link_type":31},"hr","Croatia",[1321],{"type":306,"text":1322,"spans":1323,"direction":309},"As of our most recent update, there is no known transposition activity in Croatia.",[],[1325],{"type":306,"text":1241,"spans":1326,"direction":309},[],[],{"euptd_page":1329,"country_code":1330,"stage":1304,"member_state":1331,"status":1332,"draft_legislation":1310,"final_legislation":1238,"effective_date":1336,"resources":1340},{"link_type":31},"cy","Cyprus",[1333],{"type":306,"text":1334,"spans":1335,"direction":309},"The Department of Labor Relations published a draft law transposing the Directive's requirements into law. The draft is currently under consultation and is expected to go into effect on June 1st, 2026",[],[1337],{"type":306,"text":1338,"spans":1339,"direction":309},"June 1st, 2026",[],[1341],{"type":306,"text":1342,"spans":1343,"direction":309},"Read all the details of Cyprus' transposition draft in our article.",[1344],{"start":1345,"end":1298,"type":586,"data":1346},24,{"link_type":588,"url":1347,"target":1078},"https:\u002F\u002Fwww.linkedin.com\u002Fpulse\u002Fpay-transparency-legislation-cyprus-beqom-ub1ue\u002F?trackingId=2c3XCPmxQ7Sd9i2R%2F%2BP7PQ%3D%3D",{"euptd_page":1349,"country_code":1350,"stage":1351,"member_state":1352,"status":1353,"draft_legislation":1310,"final_legislation":1238,"effective_date":1360,"resources":1364},{"link_type":31},"cz","Delays announced","Czech Republic",[1354],{"type":306,"text":1355,"spans":1356,"direction":309},"On March 16th, the Ministry of Labour and Social Affairs (MPSV) introduced a draft amendment to the Labour Code to implement the Directive. The country has opted for a minimalist approach, sticking to the minimum Directive requirements to ease the burden on employers. However, the country is joining the delay trend, setting the effective date to January 1st, 2027.",[1357],{"start":1358,"end":1359,"type":580},348,365,[1361],{"type":306,"text":1362,"spans":1363,"direction":309},"January 1st, 2027",[],[1365],{"type":306,"text":1366,"spans":1367,"direction":309},"More details on Czech Republic's pay transparency legislation changes.",[1368],{"start":1369,"end":1370,"type":586,"data":1371},16,69,{"link_type":588,"url":1372,"target":1078},"https:\u002F\u002Fwww.linkedin.com\u002Fpulse\u002Fczechia-unveils-eu-pay-transparency-draft-joins-delays-trend-beqom-nhujf\u002F?trackingId=gRFE35E1RiKzTAdGIYIX5Q%3D%3D",{"euptd_page":1374,"country_code":1375,"stage":1351,"member_state":1376,"status":1377,"draft_legislation":1310,"final_legislation":1238,"effective_date":1390,"resources":1394},{"link_type":31},"dk","Denmark",[1378,1381,1384,1387],{"type":306,"text":1379,"spans":1380,"direction":309},"Denmark published its draft proposal in February 2026.",[],{"type":306,"text":1382,"spans":1383,"direction":309},"Following the delay trend like the Netherlands, the Danish draft is expected to come into effect in January 2027, with the first round of reporting due by September 2028.",[],{"type":306,"text":1385,"spans":1386,"direction":309},"Key provisions in the transposition draft include using DISCO codes for job classification (although they won't be valid as a \"work of equal value\" framework), a new monitoring body, and pay transparency before salary negotiations.",[],{"type":306,"text":1388,"spans":1389,"direction":309},"The country also has current legislation in effect, requiring employers with 35 or more employees to provide employees with a pay report.",[],[1391],{"type":306,"text":1392,"spans":1393,"direction":309},"January 2027",[],[1395],{"type":306,"text":1396,"spans":1397,"direction":309},"We go into more detail in this article about Denmark's proposed implementation of the EU Pay Transparency Directive.",[1398],{"start":1399,"end":1400,"type":586,"data":1401},45,115,{"link_type":588,"url":1402,"target":1078},"https:\u002F\u002Fwww.linkedin.com\u002Fpulse\u002Fdenmarks-eu-directive-draft-other-compliance-updates-beqom-ifrof\u002F?trackingId=447RUHGnieRUi%2B9HuKQjFA%3D%3D",{"euptd_page":1404,"country_code":1405,"stage":1351,"member_state":1406,"status":1407,"draft_legislation":1238,"final_legislation":1238,"effective_date":1417,"resources":1420},{"link_type":31},"ee","Estonia",[1408,1411,1414],{"type":306,"text":1409,"spans":1410,"direction":309},"In April 2026, the Minister of Economic Affairs requested that the EU Commission postpone the Directive's deadline to reduce the administrative burden on employers. However, one week later, the Ministry of Economic Affairs proposed some legislative amendments to current laws that would implement some parts of the Directive, including salary range disclosure and a ban on salary confidentiality and salary history questions.",[],{"type":306,"text":1412,"spans":1413,"direction":309},"The country has asked for a two-year delay to implement the Directive's reporting requirements.",[],{"type":306,"text":1415,"spans":1416,"direction":309},"The government is currently developing a digital solution, called Palagapeegel or Pay Mirror, that employers will use for their reporting activity when the transposed legislation takes effect in 2026.",[],[1418],{"type":306,"text":1241,"spans":1419,"direction":309},[],[],{"euptd_page":1422,"country_code":1423,"stage":1351,"member_state":1424,"status":1425,"draft_legislation":1310,"final_legislation":1238,"effective_date":1432,"resources":1435},{"link_type":31},"fi","Finland",[1426,1429],{"type":306,"text":1427,"spans":1428,"direction":309},"In May 2026, Finland's Ministry of Social Affairs and Health updated the project schedule for the legislation that will transpose the Directive. The draft is expected to be presented in the middle of June, which suggests that the country might miss the June 7th, 2026 deadline.",[],{"type":306,"text":1430,"spans":1431,"direction":309},"The draft legislation would enact a full transposition of the EU Directive by amending Finland’s existing Act on Equality Between Women and Men. The government holds that this legislation is at the minimum level required by the Directive; however, a few employer groups disagree.",[],[1433],{"type":306,"text":1241,"spans":1434,"direction":309},[],[1436],{"type":306,"text":1437,"spans":1438,"direction":309},"See our full article for a few nuances of the draft legislation.",[1439],{"start":770,"end":1192,"type":586,"data":1440},{"link_type":588,"url":1441,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Ffinland-transposes-eu-pay-transparency-directive",{"euptd_page":1443,"country_code":1444,"stage":1351,"member_state":1445,"status":1446,"draft_legislation":1310,"final_legislation":1238,"effective_date":1461,"resources":1464},{"link_type":31},"fr","France",[1447,1450,1455,1458],{"type":306,"text":1448,"spans":1449,"direction":309},"Current legislation in France dates to 2018 and is based on the nation’s gender equality index. The law mandates that employers with over 50 employees must submit an annual pay gap report.",[],{"type":306,"text":1451,"spans":1452,"direction":309},"In March 2026, the nation’s government drafted new legislation to update its index and align it with the Directive’s key requirements. This includes the pay transparency mandates, rules for pay assessments if an employer’s gender pay gap is over 5%, and fines for noncompliance.",[1453],{"start":1297,"end":1454,"type":580},133,{"type":306,"text":1456,"spans":1457,"direction":309},"The planned legislation exceeds the Directive’s minimum requirements in one area. While the Directive states that employers with 100 or more employees must report their pay gap metrics, France plans to keep its current reporting threshold of 50 employees.",[],{"type":306,"text":1459,"spans":1460,"direction":309},"This new legislation is predicted to miss the Directive’s transposition deadline of June 7th, 2026; rather, it is expected to take effect on January 1st, 2027.",[],[1462],{"type":306,"text":1362,"spans":1463,"direction":309},[],[1465],{"type":306,"text":1466,"spans":1467,"direction":309},"For more detail on the current pay equity reporting requirements in France, see our local requirements page.",[1468],{"start":636,"end":1469,"type":586,"data":1470},107,{"link_type":588,"url":1471,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Flocal-requirements\u002Ffrance",{"euptd_page":1473,"country_code":1474,"stage":1351,"member_state":1475,"status":1476,"draft_legislation":1238,"final_legislation":1238,"effective_date":1483,"resources":1486},{"link_type":31},"de","Germany",[1477,1480],{"type":306,"text":1478,"spans":1479,"direction":309},"In October 2025, a German government committee issued a report that provides guidance on EU Directive transposition. Based on the recommendations, Germany’s new pay transparency and equity requirements would stay fairly close to the Directive’s set thresholds. The committee also recommends digital tools, like reporting portals and pay gap analysis tools, to ease the administrative burden on employers. Pay equity experts speculate that reporting will not be required until 2027. ",[],{"type":306,"text":1481,"spans":1482,"direction":309},"Germany already has pay transparency legislation in place: the 2017 Transparency in Wage Structures Act (Entgelttransparenzgesetz) requires all organizations with over 200 employees to be ready to provide pay structure information to employees on request, including information about how that individual’s pay is determined. Employers with over 500 employees are required to report on gender equality and equal pay every few years.",[],[1484],{"type":306,"text":1241,"spans":1485,"direction":309},[],[1487],{"type":306,"text":1488,"spans":1489,"direction":309},"For more information, check out our article on Germany's pay transparency and pay equity law and reporting.",[1490],{"start":818,"end":1491,"type":586,"data":1492},43,{"link_type":588,"url":1493,"target":590},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Fgermany-pay-equity-transparency-laws",{"euptd_page":1495,"country_code":1496,"stage":1227,"member_state":1497,"status":1498,"draft_legislation":1238,"final_legislation":1238,"effective_date":1502,"resources":1505},{"link_type":31},"gr","Greece",[1499],{"type":306,"text":1500,"spans":1501,"direction":309},"As of our most recent update, Greece has begun developing a working group to transpose the Directive.",[],[1503],{"type":306,"text":1241,"spans":1504,"direction":309},[],[],{"euptd_page":1507,"country_code":1508,"stage":1227,"member_state":1509,"status":1510,"draft_legislation":1238,"final_legislation":1238,"effective_date":1514,"resources":1517},{"link_type":31},"hu","Hungary",[1511],{"type":306,"text":1512,"spans":1513,"direction":309},"As of our most recent update, there is no known transposition activity in Hungary.",[],[1515],{"type":306,"text":1241,"spans":1516,"direction":309},[],[],{"euptd_page":1519,"country_code":1520,"stage":1351,"member_state":1521,"status":1522,"draft_legislation":1279,"final_legislation":1238,"effective_date":1537,"resources":1540},{"link_type":31},"ie","Ireland",[1523,1526,1534],{"type":306,"text":1524,"spans":1525,"direction":309},"On January 15th, 2025, Ireland published draft legislation that would partially transpose the EU Directive, specifically with regard to its pay transparency provisions. The first provision of this legislation would require a remuneration rate or range in all job postings. The second would prohibit employers from asking applicants about their pay history. There is no official information about when this draft legislation will be considered. ",[],{"type":306,"text":1527,"spans":1528,"direction":309},"The draft legislation does not address pay gap reporting requirements. Ireland does already have legislation in this area; see our local resources page for more detail. ",[1529],{"start":1530,"end":1531,"type":586,"data":1532},131,151,{"link_type":588,"url":1533,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Flocal-requirements\u002Fireland",{"type":306,"text":1535,"spans":1536,"direction":309},"As of June 1st, 2025, all organizations with over 50 employees are required to report. The current reporting requirement specifies that employers must report gender pay gaps (mean and median), statistics on benefits in kind and bonuses, and gender distribution in each salary quartile. Since the EU Directive lays out more specific and detailed reporting requirements, Ireland is expected to change its reporting legislation to make it Directive-compliant.",[],[1538],{"type":306,"text":1241,"spans":1539,"direction":309},[],[1541],{"type":306,"text":1542,"spans":1543,"direction":309},"For more information on Ireland's transposition activity, see our in-depth article.",[1544],{"start":1545,"end":706,"type":586,"data":1546},66,{"link_type":588,"url":1547,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Fireland-eu-pay-transparency-directive-pay-gap-reporting",{"euptd_page":1549,"country_code":1550,"stage":1247,"member_state":1551,"status":1552,"draft_legislation":1310,"final_legislation":1310,"effective_date":1568,"resources":1572},{"link_type":31},"it","Italy",[1553,1558,1565],{"type":306,"text":1554,"spans":1555,"direction":309},"On April 30th, Italy's Council of Ministers approved the final text of the legislative decree implementing the Directive, which is now awaiting the President's signature. Key requirements include a ban on pay secrecy clauses, mandatory pre-employment transparency, employees' right to information, and a 5% threshold for pay gaps.",[1556],{"start":705,"end":1557,"type":580},67,{"type":306,"text":1559,"spans":1560,"direction":309},"The draft decree follows legal activity back in 2024 with the passing of Law no. 15\u002F2024, which laid the legal foundation for transposition and set a 2026 deadline.",[1561],{"start":1290,"end":1562,"type":586,"data":1563},88,{"link_type":588,"url":1564,"target":1078},"https:\u002F\u002Fwww.gazzettaufficiale.it\u002Feli\u002Fid\u002F2024\u002F02\u002F24\u002F24G00027\u002FSG",{"type":306,"text":1566,"spans":1567,"direction":309},"Italy already has existing reporting requirements dating back to 2021, which requires employers with 50 or more employees to report on gender and pay data every two years.",[],[1569],{"type":306,"text":1570,"spans":1571,"direction":309},"2026",[],[1573],{"type":306,"text":1574,"spans":1575,"direction":309},"See our article for more information about Italy’s established reporting requirements and the new legislation.",[1576],{"start":1491,"end":1577,"type":586,"data":1578},109,{"link_type":588,"url":1579,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Fitaly-pay-gap-reporting-eu-pay-transparency-directive-transposition",{"euptd_page":1581,"country_code":1582,"stage":1304,"member_state":1583,"status":1584,"draft_legislation":1310,"final_legislation":1238,"effective_date":1588,"resources":1592},{"link_type":31},"lv","Latvia",[1585],{"type":306,"text":1586,"spans":1587,"direction":309},"In Spring 2026, the Latvian government published a draft law transposing the Directive's requirements into national legislation. The draft aligns with the Directive's requirements. However, it doesn't specify an effective date for the requirements to come into force, which signals adherence to the Directive's timeline.",[],[1589],{"type":306,"text":1590,"spans":1591,"direction":309},"June 2026",[],[1593],{"type":306,"text":1594,"spans":1595,"direction":309},"For more information on Latvia's draft, read this article.",[1596],{"start":1597,"end":1030,"type":586,"data":1598},40,{"link_type":588,"url":1599,"target":1078},"https:\u002F\u002Fwww.linkedin.com\u002Fpulse\u002Feu-directive-baltic-divide-dutch-pivot-beqom-mge9f\u002F",{"euptd_page":1601,"country_code":1602,"stage":1247,"member_state":1603,"status":1604,"draft_legislation":1310,"final_legislation":1310,"effective_date":1617,"resources":1620},{"link_type":31},"lt","Lithuania",[1605,1608,1611,1614],{"type":306,"text":1606,"spans":1607,"direction":309},"On May 20th, 2025, Lithuania published draft legislation that would partially transpose the EU Directive. This legislation builds on the existing framework of Lithuania’s Labour Code and Administrative Code.",[],{"type":306,"text":1609,"spans":1610,"direction":309},"On May 2026, the country published the final law transposing the Directive. While the effective date aligns with the 7th June 2026 deadline, some provisions have been pushed: the \"Right to Information\" requirement will enter into force on January 1st, 2027, and the first reporting deadline is set for March 1st, 2028.",[],{"type":306,"text":1612,"spans":1613,"direction":309},"The pre-existing legislation includes a gender pay gap reporting requirement for employers with 20 or more workers, and if the gap exceeds 5%, the organization is required to take action to close it. In terms of pay transparency, employers must provide salary range information for open jobs and cannot ask applicants or employees about salary history.",[],{"type":306,"text":1615,"spans":1616,"direction":309},"The draft legislation expands existing law and transposes many elements of the EU Directive. It includes the Directive’s pay transparency provisions that guarantee employees’ right to information, and it requires employers to have formal pay systems based on objective, gender-neutral criteria. Two of the Directive’s requirements (reporting and joint assessment) will need to be addressed separately.",[],[1618],{"type":306,"text":1313,"spans":1619,"direction":309},[],[1621],{"type":306,"text":1622,"spans":1623,"direction":309},"See our full discussion of Lithuania’s draft legislation.",[1624],{"start":1297,"end":1625,"type":586,"data":1626},56,{"link_type":588,"url":1627,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Flithuania-eu-pay-transparency-directive-transposition-updates",{"euptd_page":1629,"country_code":1630,"stage":1227,"member_state":1631,"status":1632,"draft_legislation":1238,"final_legislation":1238,"effective_date":1636,"resources":1639},{"link_type":31},"lu","Luxembourg",[1633],{"type":306,"text":1634,"spans":1635,"direction":309},"As of our most recent update, there is no known transposition activity in Luxembourg.",[],[1637],{"type":306,"text":1241,"spans":1638,"direction":309},[],[],{"euptd_page":1641,"country_code":1642,"stage":1247,"member_state":1643,"status":1644,"draft_legislation":1279,"final_legislation":1279,"effective_date":1654,"resources":1658},{"link_type":31},"mt","Malta",[1645,1648,1651],{"type":306,"text":1646,"spans":1647,"direction":309},"Malta has taken initial steps towards transposing the EU Directive with a Legal Notice that was published by the Maltese parliament on June 27th, 2025 and took effect on August 27th, 2025.",[],{"type":306,"text":1649,"spans":1650,"direction":309},"The Legal Notice gives employees the right to request a written assessment between their pay level and the categories of workers performing the same work. (Note that this does not address the comparison to “work of equal value,” as required under the EU Directive.) The Legal Notice also entitles job-seekers to receive written information about the pay range, along with any relevant collective agreements, prior to starting employment.",[],{"type":306,"text":1652,"spans":1653,"direction":309},"However, in May 2026, a new debate started in the country regarding the transposition timeline. The Malta Employers Association (MEA) has requested a delay in the implementation, while the General Workers' Union (GWU) is opposing the delay.",[],[1655],{"type":306,"text":1656,"spans":1657,"direction":309},"August 27th, 2025 (pay transparency provisions)",[],[1659],{"type":306,"text":1660,"spans":1661,"direction":309},"For all the details of the partial transposition in Malta, read our full article.",[1662],{"start":1663,"end":1664,"type":586,"data":1665},68,80,{"link_type":588,"url":1666,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Fmalta-implements-eu-pay-transparency-directive",{"euptd_page":1668,"country_code":1687,"stage":1351,"member_state":1688,"status":1689,"draft_legislation":1310,"final_legislation":1238,"effective_date":1711,"resources":1714},{"id":1669,"type":1670,"tags":1671,"lang":13,"slug":1672,"first_publication_date":1673,"last_publication_date":1674,"uid":1675,"url":1676,"data":1677,"link_type":31,"key":1686,"isBroken":33},"afomLhYAAJuaPzFG","euptd_page",[],"eu-pay-transparency-directive-legislation-at-a-glance","2026-05-05T17:20:57+0000","2026-06-03T13:30:22+0000","netherlands","\u002Feuptd\u002Fnetherlands",{"meta_title":1678,"meta_description":1679,"meta_image":1680},"Netherlands: EU Pay Transparency Directive Tracker","Track the Netherlands' transposition of the EU Pay Transparency Directive — from early drafts to the legislation amending the Equal Treatment Act.",{"dimensions":1681,"alt":1682,"copyright":5,"url":1683,"id":1684,"edit":1685},{"width":565,"height":566},"A graphic with the Netherlands country silhouette","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FahV_c7K9tuLqEJVm_EUPTD_Netherlands_2400x1260.png?auto=format,compress&rect=0,0,7200,3780&w=2400&h=1260","ahV_c7K9tuLqEJVm",{"x":571,"y":571,"zoom":572,"background":573},"b48bcdb5-b523-4053-9a34-6da3a8187a77","nl","Netherlands",[1690,1697,1700,1703],{"type":306,"text":1691,"spans":1692,"direction":309},"On January 2026, the Dutch government sent and updated, revised draft to the Council of State, following its announced delay in the Directive's implementation, setting January 1st, 2027, as the new transposition deadline rather than June 2026. The first required pay gap reports would then be based on 2027 data.",[1693],{"start":1167,"end":1694,"type":586,"data":1695},93,{"link_type":588,"url":1696,"target":590},"https:\u002F\u002Fwetgevingskalender.overheid.nl\u002Fregeling\u002FWGK025384\u002Fdocumenten\u002FRaad%20van%20State\u002FAdviesaanvraag%20aanhangig%20bij%20Raad%20van%20State\u002F1",{"type":306,"text":1698,"spans":1699,"direction":309},"In May 2026, the Dutch government submitted its final transposition draft to Parliament, set to become effective on January 1st, 2027. The Ministry of Social Affairs has published a guide to help employers build gender-neutral and objectives pay structures to align with the Directive's requirements.",[],{"type":306,"text":1701,"spans":1702,"direction":309},"This legislation would enact all the directive’s basic requirements. It further specifies that employees must have “easy access” to the criteria used to determine wages and pay levels, and it sets a limit of two months for employers to respond to an employee’s request for a personalized pay comparison.",[],{"type":306,"text":1704,"spans":1705,"direction":309},"In terms of pay gap reporting, the draft legislation would require the specific metrics stipulated in the Directive (see our quick guide for a listing of those metrics.) This legislation would also establish an administrative body to collect and review the required pay gap reporting data, develop tools to help assess gaps, and hear and act on complaints about employer noncompliance. However, the collapse of the Dutch coalition government in summer 2025 has delayed consideration and implementation of this legislation.",[1706],{"start":1707,"end":1708,"type":586,"data":1709},125,136,{"link_type":588,"url":1710,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Fguides\u002Feu-pay-transparency-directive-rules",[1712],{"type":306,"text":1362,"spans":1713,"direction":309},[],[1715],{"type":306,"text":1716,"spans":1717,"direction":309},"More information on the Directive's transposition activity in the Netherlands.",[1718],{"start":1345,"end":872,"type":586,"data":1719},{"link_type":588,"url":1720,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Fthe-netherlands-transposes-the-eu-pay-transparency-directive",{"euptd_page":1722,"country_code":1723,"stage":1351,"member_state":1724,"status":1725,"draft_legislation":1310,"final_legislation":1310,"effective_date":1735,"resources":1738},{"link_type":31},"pl","Poland",[1726,1729,1732],{"type":306,"text":1727,"spans":1728,"direction":309},"In June 2025, the Polish parliament amended its existing Labor Code to partially transpose the EU Directive. These changes are connected to pay transparency: they require non-discriminatory recruitment processes, mandate that job candidates be informed of pay ranges prior to employment, and prohibit employers from asking about salary history. These changes came into effect on December 23rd, 2025.",[],{"type":306,"text":1730,"spans":1731,"direction":309},"Additionally, on December 16th, 2025, a draft act was introduced that would fill the gap and fully meet the Directive’s requirements. This addresses the pay equity elements of the Directive including employees’ right to information and pay gap reporting requirements.",[],{"type":306,"text":1733,"spans":1734,"direction":309},"However, in May 2026, Poland published a reviewed draft set to enter into force in January 2027.",[],[1736],{"type":306,"text":1392,"spans":1737,"direction":309},[],[1739],{"type":306,"text":1740,"spans":1741,"direction":309},"Deep dive into Poland's implementation details in our article.",[1742],{"start":1168,"end":1743,"type":586,"data":1744},61,{"link_type":588,"url":1745,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Fpoland-pay-equity-eu-pay-transparency-directive-transposition",{"euptd_page":1747,"country_code":1748,"stage":1227,"member_state":1749,"status":1750,"draft_legislation":1238,"final_legislation":1238,"effective_date":1757,"resources":1760},{"link_type":31},"pt","Portugal",[1751,1754],{"type":306,"text":1752,"spans":1753,"direction":309},"As of our most recent update, there is no known transposition activity in Portugal.",[],{"type":306,"text":1755,"spans":1756,"direction":309},"However, Portugal has current requirements in place. Employers need to have transparent pay policies that include an objective approach to evaluating job functions. They also need to report pay data to the government, which checks it for gender-based pay gaps. The key legislation currently in effect is Law 60\u002F2018, which was implemented in 2019.",[],[1758],{"type":306,"text":1241,"spans":1759,"direction":309},[],[1761],{"type":306,"text":1762,"spans":1763,"direction":309},"Learn more about local requirements in Portugal in this article.",[1764],{"start":1298,"end":1211,"type":586,"data":1765},{"link_type":588,"url":1766,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Fpay-equity-laws-portugal",{"euptd_page":1768,"country_code":1769,"stage":1304,"member_state":1770,"status":1771,"draft_legislation":1310,"final_legislation":1238,"effective_date":1775,"resources":1779},{"link_type":31},"ro","Romania",[1772],{"type":306,"text":1773,"spans":1774,"direction":309},"On March 30th, 2026, the Ministry of Labor, Family, Youth, and Social Solidarity published a draft law that implements the Directive into national law. The goal of the proposal is to ensure the right of equal pay for equal work or work of equal value. The draft is now open for consultation until April 8th. The proposal doesn't specify an effective date, but it maintains the current reporting timeline set by the Directive.",[],[1776],{"type":306,"text":1777,"spans":1778,"direction":309},"June 2026, since no delay was announced.",[],[1780],{"type":306,"text":1781,"spans":1782,"direction":309},"In this article we deep dive into Romania's EU Directive's draft.",[1783],{"start":778,"end":1784,"type":586,"data":1785},64,{"link_type":588,"url":1786,"target":1078},"https:\u002F\u002Fwww.linkedin.com\u002Fpulse\u002Feu-pay-transparency-romania-charges-ahead-while-others-hit-brakes-jzatf\u002F",{"euptd_page":1788,"country_code":1789,"stage":1247,"member_state":1790,"status":1791,"draft_legislation":1310,"final_legislation":1310,"effective_date":1798,"resources":1801},{"link_type":31},"sk","Slovakia",[1792,1795],{"type":306,"text":1793,"spans":1794,"direction":309},"On September 19th, 2025, Slovakia’s government introduced draft legislation that would fully transpose the EU Directive. To do so, the draft legislation would enact a new pay transparency law and would amend parts of the existing Labor Code, Labor Inspection Act, and Employment Services Act. The draft mirrors the EU Directive’s requirements, imposing them at the minimum level stipulated.",[],{"type":306,"text":1796,"spans":1797,"direction":309},"In May 2026, Slovakia’s legislative process was officially completed. The new legislation will enter into force in June 7th, 2026. However, a few provisions differ from the Directive's timeline: average pay information will be provided for the first time in 2028 with 2027 data, and salary structures must be defined by July 2026.",[],[1799],{"type":306,"text":1313,"spans":1800,"direction":309},[],[1802],{"type":306,"text":1803,"spans":1804,"direction":309},"For more information on Slovakia's transposition, see our full article.",[1805],{"start":1806,"end":1807,"type":586,"data":1808},58,70,{"link_type":588,"url":1809,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Farticles\u002Fslovakia-transposition-law-for-eu-pay-transparency-directive",{"euptd_page":1811,"country_code":1812,"stage":1227,"member_state":1813,"status":1814,"draft_legislation":1238,"final_legislation":1238,"effective_date":1818,"resources":1821},{"link_type":31},"si","Slovenia",[1815],{"type":306,"text":1816,"spans":1817,"direction":309},"As of our most recent update, there is no known transposition activity in Slovenia.",[],[1819],{"type":306,"text":1241,"spans":1820,"direction":309},[],[],{"euptd_page":1823,"country_code":1824,"stage":1227,"member_state":1825,"status":1826,"draft_legislation":1238,"final_legislation":1238,"effective_date":1833,"resources":1836},{"link_type":31},"es","Spain",[1827,1830],{"type":306,"text":1828,"spans":1829,"direction":309},"In May 2026, the Ministry of Labour and Social Economy launched a public consultation for the drafting of a Royal Decree that will transpose the Directive.",[],{"type":306,"text":1831,"spans":1832,"direction":309},"The country has some foundational pay equity legislation that was passed in 2021, although the EU Directive will go beyond those requirements. The existing requirements include an annual remuneration register, an auditing requirement and job evaluation requirement for organizations with 50 or more workers, and employees’ right to pay information.",[],[1834],{"type":306,"text":1241,"spans":1835,"direction":309},[],[1837],{"type":306,"text":1838,"spans":1839,"direction":309},"Our local requirements page provides more information about Spain’s current legislation.",[1840],{"start":1841,"end":813,"type":586,"data":1842},4,{"link_type":588,"url":1843,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fresources\u002Flocal-requirements\u002Fspain",{"euptd_page":1845,"country_code":1846,"stage":1351,"member_state":1847,"status":1848,"draft_legislation":1310,"final_legislation":1238,"effective_date":1875,"resources":1878},{"link_type":31},"se","Sweden",[1849,1864,1870],{"type":306,"text":1850,"spans":1851,"direction":309},"Legislation was drafted in Sweden as of May 2024. The draft legislation adds the EU Directive’s requirement to Sweden’s own existing legislation. On January 15th, 2026, Minister for Gender Equality Nina Larsson unveiled the official roadmap to full transposition into national law. However, on March 26th, 2026, the nation issued a press release asking for a renegotiation of the Directive's requirements and a delay in implementation.",[1852,1857,1861],{"start":1853,"end":1854,"type":586,"data":1855},54,71,{"link_type":588,"url":1856,"target":1078},"https:\u002F\u002Fwww-regeringen-se.translate.goog\u002Frattsliga-dokument\u002Fstatens-offentliga-utredningar\u002F2024\u002F05\u002Fsou-202440\u002F?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp",{"start":1858,"end":784,"type":586,"data":1859},224,{"link_type":588,"url":1860,"target":590},"https:\u002F\u002Fwww.regeringen.se\u002Fpressmeddelanden\u002F2026\u002F01\u002Fviktiga-steg-for-att-motverka-osakliga-loneskillnader-mellan-kvinnor-och-man\u002F",{"start":1862,"end":1863,"type":580},359,435,{"type":306,"text":1865,"spans":1866,"direction":309},"Sweden planned to integrate the Directive's requirements into its Discrimination Act (2008:567). Key requirements include transparency before hire, right to information, mandatory reporting, and lower thresholds for documentation. The proposal was has an expected effective date of January 1st, 2027, with the first round of reporting due on May 2028.",[1867],{"start":1868,"end":1869,"type":580},122,229,{"type":306,"text":1871,"spans":1872,"direction":309},"Sweden’s current requirements focus on a compensation mapping analysis called lönekartläggning that all employers must complete annually. Employers of a certain size who identify a pay gap must enact, document, and follow up on a plan for remediation.",[1873],{"start":872,"end":1874,"type":707},94,[1876],{"type":306,"text":1362,"spans":1877,"direction":309},[],[1879],{"type":306,"text":1880,"spans":1881,"direction":309},"For more information, read our article on the Swedish latest press release regarding the implementation of the EU Directive into law.",[1882],{"start":1883,"end":583,"type":586,"data":1884},46,{"link_type":588,"url":1885,"target":1078},"https:\u002F\u002Fwww.linkedin.com\u002Fpulse\u002Fsweden-unveils-roadmap-eu-directive-implementation-beqom-fo6mf\u002F?trackingId=devqHPg5bUmFKhaL4md9Kw%3D%3D","article_custom_component$fccd8718-6e65-415e-a7bf-8479c5e45ed6","article_custom_component",{"variation":689,"version":690,"items":1889,"primary":1890,"id":1905,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":1891,"text_size":711,"background_color":1213},[1892,1895,1898],{"type":695,"text":1893,"spans":1894,"direction":309},"Additional information",[],{"type":306,"text":1896,"spans":1897,"direction":309},"As we’ve seen over the last few years, many EU jurisdictions are sticking close to the minimum thresholds set by the Directive, while others are asking more of employers. Likewise, a range of solutions are emerging for the Directive’s pay gap reporting requirements.: Some nations are expanding existing systems used for pay and\u002For demographic reporting, while others are creating new platforms that employers will need to use.",[],{"type":306,"text":1899,"spans":1900,"direction":309},"With the deadline coming up quickly, we’re offering additional support to EU employers with our webinar on February 5th, 2026. With an expert keynote, a talk on strategic considerations, and an interactive Q&A, we aim to help participants dial in their last-mile preparations. ",[1901],{"start":1902,"end":1707,"type":586,"data":1903},96,{"link_type":588,"url":1904,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fevents\u002Fis-your-organization-ready-for-the-eu-pay-transparency-directive-webinar","article_text$d664db13-fff9-424e-8de9-0189737f5785",{"variation":689,"version":690,"items":1907,"primary":1908,"id":1957,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":1909,"text_size":711,"background_color":712},[1910,1913,1916,1922,1925,1928,1931,1934,1937,1940,1945,1948,1951,1954],{"type":695,"text":1911,"spans":1912,"direction":309},"The EU Pay Transparency Directive in a nutshell",[],{"type":306,"text":1914,"spans":1915,"direction":309},"The EU Directive aims to prevent pay discrimination on the basis of gender. It does this through legislation in two areas: pay transparency and pay equity.",[],{"type":757,"text":1917,"spans":1918,"direction":309},"Pay transparency requirements:",[1919],{"start":571,"end":1920,"type":753,"data":1921},30,{"label":755},{"type":800,"text":1923,"spans":1924,"direction":309},"Starting pay must be provided to job applicants before the interview or in the job posting",[],{"type":800,"text":1926,"spans":1927,"direction":309},"Ban on asking applicants about pay history",[],{"type":800,"text":1929,"spans":1930,"direction":309},"All employer decisions about employees’ pay levels and career progression must be based on gender-neutral criteria that employees can reference",[],{"type":800,"text":1932,"spans":1933,"direction":309},"Employees cannot be prohibited from talking about their pay",[],{"type":800,"text":1935,"spans":1936,"direction":309},"Employees are entitled to information about pay ranges on request",[],{"type":800,"text":1938,"spans":1939,"direction":309},"Employees are entitled to a personalized comparison of their pay to the pay of other comparable employees (doing the same work or work of equal value)",[],{"type":757,"text":1941,"spans":1942,"direction":309},"Pay equity requirements:",[1943],{"start":571,"end":1345,"type":753,"data":1944},{"label":755},{"type":800,"text":1946,"spans":1947,"direction":309},"Employers are required to measure and publish pay gap metrics (which can account for gender-neutral criteria). There are nine specific measurements required.",[],{"type":800,"text":1949,"spans":1950,"direction":309},"Employees have the right to see these measurements",[],{"type":800,"text":1952,"spans":1953,"direction":309},"The gender pay gap should be below 5% (after accounting for objective, gender-neutral factors)",[],{"type":800,"text":1955,"spans":1956,"direction":309},"Employers bear the burden of proof in any pay dispute",[],"article_text$5551e7b8-f05a-4d1c-bf53-5d2667fb01c9",{"variation":689,"version":690,"items":1959,"primary":1960,"id":1965,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":1961,"text_size":711,"background_color":712},[1962],{"type":695,"text":1963,"spans":1964,"direction":309},"Keep reading",[],"article_text$e1ef84df-4646-461d-8fd6-7ead1caa95bd",{"variation":689,"version":690,"items":1967,"primary":1968,"id":1985,"slice_type":1202,"slice_label":5},[],{"section_id":5,"image":1969,"content":1975,"link_url":1982,"link_label":1984,"background_color":1200},{"dimensions":1970,"alt":1971,"copyright":5,"url":1972,"id":1973,"edit":1974},{"width":565,"height":566},"booklet image of the EU Pay Transparency Directive 2025 eGuide from beqom","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FaF0ktXfc4bHWivs3_beqom_EUPTD-Blog_PrismicBanner.jpg?auto=format,compress","aF0ktXfc4bHWivs3",{"x":571,"y":571,"zoom":572,"background":573},[1976,1979],{"type":757,"text":1977,"spans":1978,"direction":309},"Looking for an easy-to-understand breakdown of the EU Pay Transparency Directive?",[],{"type":306,"text":1980,"spans":1981,"direction":309},"Our eGuide gives you the clarity, strategies, and tools you need to understand the requirements you'll need to comply with by June 2026.",[],{"link_type":588,"key":1197,"url":1983},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fa-guide-to-the-eu-pay-transparency-directive","Get your free copy now","article_image_and_text$0f425142-7d83-48e8-82e7-fc801bbffa94",{"variation":689,"version":690,"items":1987,"primary":1988,"id":2016,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":1989,"text_size":711,"background_color":1200},[1990,1993,1999,2008],{"type":306,"text":1991,"spans":1992,"direction":309},"We’ve also been updating the following resources:",[],{"type":306,"text":1994,"spans":1995,"direction":309},"📖 The pocket guide provides an overview of the Directive’s requirements and key concepts.",[1996],{"start":1997,"end":724,"type":586,"data":1998},7,{"link_type":588,"url":1710,"target":1078},{"type":306,"text":2000,"spans":2001,"direction":309},"📖 For a step-by-step compliance plan, we’ve created a readiness checklist available for free download.",[2002,2004],{"start":1101,"end":2003,"type":580},37,{"start":2005,"end":2006,"type":586,"data":2007},55,102,{"link_type":588,"url":1198,"target":590},{"type":306,"text":2009,"spans":2010,"direction":309},"🎙️ If you’d like access to an expert discussion today, you can watch our 2025 EU Pay Transparency Directive webinar on-demand.",[2011],{"start":2012,"end":2013,"type":586,"data":2014},74,116,{"link_type":588,"url":2015,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fon-demand-webinar-eu-pay-transparency-directive-02jul25","article_text$60b71e53-533e-440f-ac72-3f7116a23a4d",{"variation":689,"version":690,"items":2018,"primary":2019,"id":2032,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2020,"text_size":1212,"background_color":1213},[2021],{"type":306,"text":2022,"spans":2023,"direction":309},"We’ve helped some of the world’s leading companies close pay gaps, embed pay transparency into their compensation processes, and comply with the EU Pay Transparency Directive. Learn how we can help you simplify global compliance and reduce risk.",[2024,2027],{"start":2025,"end":1168,"type":586,"data":2026},25,{"link_type":588,"url":875,"target":590},{"start":2028,"end":2029,"type":586,"data":2030},176,185,{"link_type":588,"url":2031,"target":590},"https:\u002F\u002Fwww.beqom.com\u002Fbook-a-demo","article_text$fe26fa5b-916d-46e1-bddd-6c6178841ecb","EU Pay Transparency Directive Transposition by Country","On this page, we’re tracking EU member states’ progress towards implementation of the EU Pay Transparency Directive into national law.",{"dimensions":2036,"alt":1106,"copyright":5,"url":2037,"id":1108,"edit":2038},{"width":565,"height":566},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ025c5bqstJ978wA_beqom_TranspositionMap_PrismicBanner.jpg?auto=format,compress&rect=0,0,2400,1260&w=2400&h=1260",{"x":571,"y":571,"zoom":572,"background":573},"EU Pay Transparency Directive Transposition Tracker","This page monitors the progress of EU member states in implementing the EU Pay Transparency Directive into national law.","Monitor EU Pay Transparency Directive Transposition Here","Follow along as we document how EU member states are advancing towards adopting the EU Pay Transparency Directive.",{"id":2044,"uid":2045,"url":2046,"type":1023,"href":2047,"tags":2048,"first_publication_date":2049,"last_publication_date":2050,"slugs":2051,"linked_documents":2053,"lang":13,"alternate_languages":2054,"data":2059},"ahhZxxEAAC0AIEXE","explainable-ai-in-compensation","\u002Fblog\u002Fexplainable-ai-in-compensation","https:\u002F\u002Fbeqom-com.cdn.prismic.io\u002Fapi\u002Fv2\u002Fdocuments\u002Fsearch?ref=aiBRPxIAAC4A6hYF&q=%5B%5B%3Ad+%3D+at%28document.id%2C+%22ahhZxxEAAC0AIEXE%22%29+%5D%5D",[],"2026-05-28T15:57:53+0000","2026-06-01T13:50:29+0000",[2052],"what-is-explainable-ai-in-compensation",[],[2055,2057],{"id":2056,"type":1023,"lang":17,"uid":2045},"ah39BhEAAC0AZfe4",{"id":2058,"type":1023,"lang":20,"uid":2045},"ah39FxEAACwAZffb",{"title":2060,"excerpt":2061,"written_by":2065,"reviewed_by":2084,"publication_date":2085,"date_to_order_by":2086,"last_modified_date":5,"last_modified_date_description":2087,"time_to_read":2088,"blog_post_gating":1102,"button_label":5,"featured_image":2089,"products":2099,"topics":2126,"slices":2151,"meta_title":2330,"meta_description":2331,"meta_image":2332,"seo_index":592,"seo_follow":592,"og_title":2337,"og_description":2338,"twitter_title":2339,"twitter_description":2340,"do_not_display_in_list_of_blogs":33},"Explainable AI in Compensation: What It Is, Why It Matters, and How To Get There",[2062],{"type":306,"text":2063,"spans":2064,"direction":309},"Discover why Explainable AI is the foundation of fair, defensible compensation decisions — and what it means for your organization.",[],{"id":2066,"type":1057,"tags":2067,"lang":13,"slug":2068,"first_publication_date":2069,"last_publication_date":2070,"uid":2068,"url":2071,"data":2072,"link_type":31,"key":2083,"isBroken":33},"Zh_0oBAAAFUAOw0v",[],"clare-bonham","2024-04-17T16:11:14+0000","2025-03-28T11:12:42+0000","\u002Fauthors\u002Fclare-bonham",{"name":2073,"author_photo":2074,"job_title":2080,"company_name":1074,"company_url":2081,"is_a_former_beqom_employee":33},"Clare Bonham",{"dimensions":2075,"alt":2073,"copyright":5,"url":2077,"id":2078,"edit":2079},{"width":2076,"height":2076},1080,"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ9wHAjiBA97GitUM_AuthorPhoto_Clare.jpg?auto=format,compress","Z9wHAjiBA97GitUM",{"x":571,"y":571,"zoom":572,"background":573},"Chief Product Officer",{"link_type":588,"key":2082,"url":1077,"target":1078},"bacdef20-51f9-4f01-8d5a-aa7cd79baad0","c0e71c32-dfc6-4c45-ad0d-3e2324902fdd",{"link_type":31},"2026-05-28T07:59:00+0000","2026-05-28",[],5,{"dimensions":2090,"alt":2091,"copyright":5,"url":2092,"id":2093,"edit":2094,"preview":2095},{"width":630,"height":631},"Two workers sitting in an office","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002Fah2OEgeQX7-eWfVJ_GeneratedImageMay29_2026.jpeg?auto=format,compress&rect=3,0,1554,877&w=1240&h=700","ah2OEgeQX7-eWfVJ",{"x":1028,"y":571,"zoom":572,"background":573},{"dimensions":2096,"alt":2091,"copyright":5,"url":2097,"id":2093,"edit":2098},{"width":639,"height":640},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002Fah2OEgeQX7-eWfVJ_GeneratedImageMay29_2026.jpeg?auto=format,compress&rect=0,0,1558,877&w=828&h=466",{"x":571,"y":571,"zoom":572,"background":573},[2100,2113],{"product":2101},{"id":99,"type":49,"tags":2102,"lang":13,"slug":101,"first_publication_date":102,"last_publication_date":103,"uid":104,"url":105,"data":2103,"link_type":31,"key":2112,"isBroken":33},[],{"title":97,"icon":2104,"meta_title":2110,"meta_description":2111},{"dimensions":2105,"alt":2106,"copyright":5,"url":2107,"id":2108,"edit":2109},{"width":631,"height":631},"the beqom icon in yellow","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FaTqnmHNYClf9oDtQ_AI_logo.png?auto=format,compress","aTqnmHNYClf9oDtQ",{"x":571,"y":571,"zoom":572,"background":573},"beqom's Intentional AI","With beqom AI we don't just automate pay – we augment it with Intentional AI.","40fc70df-6afe-48a1-b382-d5991dac32d5",{"product":2114},{"id":48,"type":49,"tags":2115,"lang":13,"slug":51,"first_publication_date":52,"last_publication_date":53,"uid":54,"url":55,"data":2116,"link_type":31,"key":2125,"isBroken":33},[],{"title":46,"icon":2117,"preview_title":906,"preview_image":2120,"meta_title":2123,"meta_description":2124},{"dimensions":2118,"alt":902,"copyright":5,"url":903,"id":904,"edit":2119},{"width":901,"height":652},{"x":571,"y":571,"zoom":572,"background":573},{"dimensions":2121,"alt":911,"copyright":5,"url":912,"id":913,"edit":2122},{"width":909,"height":910},{"x":571,"y":571,"zoom":572,"background":573},"Compensation Management Software by beqom","The Compensation Management software by beqom empowers employers to build effective compensation and performance strategies that encourage strong employee productivity.","60240b48-a044-45c3-94b7-2db4ba2f59c4",[2127,2141,2149],{"topic":2128},{"id":2129,"type":1139,"tags":2130,"lang":13,"slug":2131,"first_publication_date":2132,"last_publication_date":2132,"uid":2131,"data":2133,"link_type":31,"key":2140,"isBroken":33},"aTAvZxIAACQA4Ycz",[],"ai","2025-12-03T12:40:27+0000",{"title":2134,"plural_title":2134,"icon_code":2135,"description_text_for_rs_coll_page":2136},"AI","ph:lightning",[2137],{"type":306,"text":2138,"spans":2139,"direction":309},"Articles and blogs on the topic of Artificial Intelligence.",[],"85bb902a-e721-400e-8495-ca55533a3727",{"topic":2142},{"id":2143,"type":1139,"tags":2144,"lang":13,"slug":54,"first_publication_date":2145,"last_publication_date":2146,"uid":54,"data":2147,"link_type":31,"key":2148,"isBroken":33},"ZiYjZRAAANCqVj0k",[],"2024-04-22T08:44:23+0000","2025-12-16T18:55:58+0000",{"title":46},"88de385f-a774-4654-b303-a06a577dcc01",{"topic":2150},{"link_type":31},[2152,2168,2182,2201,2231,2237,2257,2274,2299,2319],{"variation":689,"version":690,"items":2153,"primary":2154,"id":2167,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2155,"text_size":711,"background_color":712},[2156],{"type":306,"text":2157,"spans":2158,"direction":309},"Intentional AI — as outlined in beqom's whitepaper, Modeling with Intention — rests on three pillars: Explainable, Collaborative, and Controllable. Together, they form a framework for using AI in compensation that is governed, defensible, and built around people. \nThis post focuses on the first: Explainable AI — and what it means for CHROs, CFOs, and compensation leaders who need faster pay cycles, stronger employee trust, and the ability to stand confidently in front of regulators, boards, and their own workforce.",[2159,2164],{"start":2160,"end":2161,"type":586,"data":2162},52,75,{"link_type":588,"url":2163,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fintentional-ai-eguide",{"start":2165,"end":2166,"type":580},265,312,"article_text$62092d25-28b8-4d17-ae2f-0729e1b47469",{"variation":689,"version":690,"items":2169,"primary":2170,"id":2181,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2171,"text_size":711,"background_color":1213},[2172,2175,2178],{"type":695,"text":2173,"spans":2174,"direction":309},"What is Explainable AI in compensation?",[],{"type":306,"text":2176,"spans":2177,"direction":309},"Explainable AI is the ability to show, step by step, how a decision was reached — which data was used, which rules were applied, and what logic connected them. In compensation, this means a manager can look at any pay recommendation and trace it back to its source: the market data, the internal salary range, the performance inputs, the equity targets, and the company policies that shaped the outcome.",[],{"type":306,"text":2179,"spans":2180,"direction":309},"This is different from most general-purpose AI tools, which generate responses based on patterns in large datasets. Those tools are useful for drafting emails or summarizing documents, but they are not built for high-stakes decisions that affect people's livelihoods. When asked to run the same scenario twice, they may produce different results. In compensation, that kind of unpredictability creates real risk.",[],"article_text$af5e874f-e8a0-4fa0-8cae-49de21b271d4",{"variation":689,"version":690,"items":2183,"primary":2184,"id":2200,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2185,"text_size":711,"background_color":712},[2186,2189,2192,2195],{"type":695,"text":2187,"spans":2188,"direction":309},"Why does explainability matter so much for compensation?",[],{"type":306,"text":2190,"spans":2191,"direction":309},"Not only is compensation a major cost center; it's also one of the most heavily regulated areas of any organization. The EU AI Act requires companies to use AI in explainable and auditable ways, with human oversight. Pay transparency laws across the US and Europe require employers to show how ranges are set and how decisions are made. And GDPR shapes how employee data is stored and processed throughout.",[],{"type":306,"text":2193,"spans":2194,"direction":309},"Beyond regulation, there is a practical leadership reality: when a manager has to explain a pay decision to an employee, or when HR faces scrutiny from an auditor, \"AI recommended it\" is not a sufficient answer. Leaders need to be able to explain what data was used, how it was weighted, and how an outcome was reached.",[],{"type":306,"text":2196,"spans":2197,"direction":309},"Explainable AI makes that conversation possible. It gives compensation teams a foundation they can actually work from, rather than a black box they have to work around.",[2198],{"start":571,"end":2199,"type":580},49,"article_text$41ce0ef7-b779-4a7d-9520-c07a7ba384bf",{"variation":689,"version":690,"items":2202,"primary":2203,"id":2230,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2204,"text_size":711,"background_color":712},[2205,2208,2211,2214,2217,2220,2223,2226],{"type":695,"text":2206,"spans":2207,"direction":309},"How does Explainable AI work in practice?",[],{"type":306,"text":2209,"spans":2210,"direction":309},"The key is determinism. Unlike probabilistic AI models that introduce randomness into each output, deterministic AI always produces the same result from the same inputs. Run the same scenario twice and you get the same answer. Every step in the calculation is known, governed, and repeatable.",[],{"type":306,"text":2212,"spans":2213,"direction":309},"In compensation, this means:",[],{"type":800,"text":2215,"spans":2216,"direction":309},"Every pay recommendation is generated from defined, governed formulas rather than inferred from patterns.",[],{"type":800,"text":2218,"spans":2219,"direction":309},"Every formula connects to a specific data source — market benchmarks, internal bands, performance ratings — and that connection is documented.",[],{"type":800,"text":2221,"spans":2222,"direction":309},"Every output can be presented in plain language, so managers can explain it to employees without needing a data scientist in the room.",[],{"type":800,"text":2224,"spans":2225,"direction":309},"Every decision leaves an audit trail that HR, finance, and legal teams can review at any point.",[],{"type":306,"text":2227,"spans":2228,"direction":309},"\nThis is what beqom calls a system of intelligence — not just a place to store compensation data, but a platform that actively applies governed logic to produce recommendations that can be traced end-to-end.",[2229],{"start":1194,"end":1298,"type":580},"article_text$ed49ca5e-d06b-4a07-a66d-b6ff335b8e7f",{"variation":689,"version":690,"items":2232,"primary":2233,"id":2236,"slice_type":832,"slice_label":5},[],{"section_id":5,"quote":2234,"description":2235},"\"When someone asks, 'Why did this employee get this number?' you can trace it end-to-end: here's the formula, here's the data it used, and here's where that data came from.\" — Dr. Sébastien Baehni, CTO of beqom.",[],"article_quote$deb0f8ee-6cc8-47a5-bb94-4e5c31fff67b",{"variation":689,"version":690,"items":2238,"primary":2239,"id":2256,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2240,"text_size":711,"background_color":712},[2241,2244,2247,2250,2253],{"type":695,"text":2242,"spans":2243,"direction":309},"What's the difference between Explainable AI and black-box AI?",[],{"type":306,"text":2245,"spans":2246,"direction":309},"This is one of the most common questions HR and tech leaders ask when evaluating AI tools for compensation. The difference comes down to traceability.",[],{"type":306,"text":2248,"spans":2249,"direction":309},"With black-box AI, the model takes inputs and produces outputs, but the reasoning in between is opaque. You can see what went in and what came out, but you cannot see how the result was calculated. When an outcome looks wrong — or when an employee or auditor asks why — there is no clear path back through the logic.",[],{"type":306,"text":2251,"spans":2252,"direction":309},"With Explainable AI, the reasoning is part of the output. You can inspect the inputs, the rules, and the formula. You can test whether changing one variable changes the result. You can compare decisions across employees and explain why two people in similar roles received different recommendations.",[],{"type":306,"text":2254,"spans":2255,"direction":309},"This distinction matters especially when compensation decisions are contested. Pay equity reviews, promotion cycles, and annual merit increases all carry the potential for challenge. Explainable AI gives organizations the confidence to handle those challenges with evidence rather than approximation.",[],"article_text$3e5c9605-fcbe-47d3-8fab-a0e8303bcc68",{"variation":689,"version":690,"items":2258,"primary":2259,"id":2273,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2260,"text_size":711,"background_color":712},[2261,2264,2267,2270],{"type":695,"text":2262,"spans":2263,"direction":309},"Does Explainable AI slow down the compensation process?",[],{"type":306,"text":2265,"spans":2266,"direction":309},"This is a fair concern, and the short answer is no — done well, it should speed things up. The assumption is that auditability requires extra steps, extra documentation, or extra review cycles. In practice, when AI is built with explainability from the ground up, the audit trail is a natural by-product of the process rather than an add-on.",[],{"type":306,"text":2268,"spans":2269,"direction":309},"Managers spend less time manually assembling data from multiple sources, because the system pulls it together for them. HR teams spend less time responding to one-off questions about how a number was calculated, because the logic is already documented. And compliance reviews become faster because the evidence is already organized and accessible.",[],{"type":306,"text":2271,"spans":2272,"direction":309},"The goal of Explainable AI is to reduce friction, not add it.",[],"article_text$0f6b2fe6-d7dc-4b60-bfdf-34b1be7baf6e",{"variation":689,"version":690,"items":2275,"primary":2276,"id":2298,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2277,"text_size":711,"background_color":712},[2278,2281,2284,2287,2295],{"type":695,"text":2279,"spans":2280,"direction":309},"How does Explainable AI connect to employee trust?",[],{"type":306,"text":2282,"spans":2283,"direction":309},"Pay is personal. When people feel their compensation is decided by an invisible algorithm they cannot question or understand, it erodes trust — even if the outcomes are fair. When they know that every decision is based on defined, documented logic that a manager can explain in a conversation, it builds confidence in the process.",[],{"type":306,"text":2285,"spans":2286,"direction":309},"This is why explainability is foundational to the employee experience in compensation, and not just a compliance exercise. Organizations that can explain their pay decisions clearly — to employees, to managers, to auditors, and to boards — are building a culture of pay transparency that will become increasingly important as regulations tighten and workforce expectations rise.\n",[],{"type":306,"text":2288,"spans":2289,"direction":309},"beqom's Compensation and Culture Report found that 56% of respondents said AI features are \"very important\" for automating compensation procedures. But that interest is only valuable if the AI produces outcomes that people can understand and trust. Explainability is what bridges the gap between powerful AI and practical, human-centered compensation management.",[2290,2293],{"start":571,"end":1297,"type":586,"data":2291},{"link_type":588,"url":2292,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Fbeqom-2026-compensation-culture-report-us",{"start":571,"end":2294,"type":580},148,{"type":306,"text":2296,"spans":2297,"direction":309},"",[],"article_text$bb08a463-1e89-4051-9bd6-97c2595b862d",{"variation":689,"version":690,"items":2300,"primary":2301,"id":2318,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2302,"text_size":711,"background_color":712},[2303,2306,2309,2315],{"type":695,"text":2304,"spans":2305,"direction":309},"Building explainability into your compensation strategy",[],{"type":306,"text":2307,"spans":2308,"direction":309},"Explainability is not a feature you add to an existing AI model — it is a design principle that has to be built in from the start. That means choosing tools that operate on governed data, apply defined rules, and produce outputs that can be documented and reviewed.",[],{"type":306,"text":2310,"spans":2311,"direction":309},"It also means being clear about where AI fits in your process. Explainable AI is most powerful as a decision-support layer — one that prepares managers with the right information, surfaces patterns and equity signals, and generates recommendations that humans then review and approve. It is not a replacement for human judgment; it makes human judgment more informed, consistent, and defensible.",[2312],{"start":2313,"end":2314,"type":580},284,395,{"type":306,"text":2316,"spans":2317,"direction":309},"beqom's compensation platform is built on exactly these principles. By combining a single, governed system of record with deterministic AI models and rule-based logic, beqom gives compensation teams the ability to move faster, explain every outcome, and stay confidently ahead of regulatory demands.",[],"article_text$992fa376-ed3a-4e17-9adb-74e4e7970cf0",{"variation":689,"version":690,"items":2320,"primary":2321,"id":2329,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2322,"text_size":711,"background_color":1213},[2323],{"type":306,"text":2324,"spans":2325,"direction":309},"If you are ready to bring explainability to your compensation decisions, book a demo with beqom and see what Intentional AI looks like in practice.",[2326],{"start":1290,"end":2327,"type":586,"data":2328},95,{"link_type":588,"url":2031,"target":1078},"article_text$3c8e94ab-47c2-4349-a566-6d728863a37f","Why Explainable AI matters in compensation | beqom","Learn how Explainable AI makes compensation decisions consistent, auditable, and defensible — and why it's essential for HR and C-suite leaders.",{"dimensions":2333,"alt":2091,"copyright":5,"url":2334,"id":2093,"edit":2335},{"width":565,"height":566},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002Fah2OEgeQX7-eWfVJ_GeneratedImageMay29_2026.jpeg?auto=format,compress&rect=0,29,1559,818&w=2400&h=1260",{"x":571,"y":2336,"zoom":572,"background":573},29,"Why Explainable AI is the future of compensation management","Compensation decisions affect every person in your organization. Discover how Explainable AI gives HR and finance leaders the transparency they need to make pay decisions they can stand behind.","Can you explain every pay decision your AI makes?","If the answer is no, it's time to rethink your approach. Here's what Explainable AI in compensation actually looks like.",{"id":2342,"uid":2343,"url":2344,"type":1023,"href":2345,"tags":2346,"first_publication_date":2347,"last_publication_date":2348,"slugs":2349,"linked_documents":2351,"lang":13,"alternate_languages":2352,"data":2357},"Z1GKHBMAAB8AT4t2","unadjusted-and-adjusted-pay-gap","\u002Fblog\u002Funadjusted-and-adjusted-pay-gap","https:\u002F\u002Fbeqom-com.cdn.prismic.io\u002Fapi\u002Fv2\u002Fdocuments\u002Fsearch?ref=aiBRPxIAAC4A6hYF&q=%5B%5B%3Ad+%3D+at%28document.id%2C+%22Z1GKHBMAAB8AT4t2%22%29+%5D%5D",[],"2025-01-17T09:47:27+0000","2026-05-14T15:05:46+0000",[2350],"the-uncontrolled-pay-gap-and-the-controlled-pay-gap",[],[2353,2355],{"id":2354,"type":1023,"lang":20,"uid":2343},"aDSvYhEAACN-vHYE",{"id":2356,"type":1023,"lang":17,"uid":2343},"aZhi0hEAACQALS83",{"title":2358,"excerpt":2359,"written_by":2365,"reviewed_by":2373,"publication_date":2374,"date_to_order_by":2375,"last_modified_date":2375,"last_modified_date_description":2376,"time_to_read":2088,"blog_post_gating":1102,"button_label":5,"featured_image":2377,"products":2387,"topics":2396,"slices":2402,"meta_title":2657,"meta_description":2658,"meta_image":2659,"seo_index":592,"seo_follow":592,"og_title":2660,"og_description":2661,"twitter_title":2662,"twitter_description":2663,"do_not_display_in_list_of_blogs":33},"Navigating Adjusted vs. Unadjusted Pay Gaps for EU Reporting",[2360],{"type":306,"text":2361,"spans":2362,"direction":309},"We often talk about the pay gap—but in reality, there’s more than one type of pay gap. Learn about the two pay gap types (adjusted and unadjusted), and what reporting is required by the EU Directive.",[2363],{"start":1192,"end":2364,"type":707},23,{"id":1056,"type":1057,"tags":2366,"lang":13,"slug":1059,"first_publication_date":1060,"last_publication_date":1061,"uid":1059,"url":1062,"data":2367,"link_type":31,"key":2372,"isBroken":33},[],{"name":1064,"author_photo":2368,"job_title":1073,"company_name":1074,"company_url":2371,"is_a_former_beqom_employee":33},{"dimensions":2369,"alt":1069,"copyright":5,"url":1070,"id":1071,"edit":2370},{"width":1067,"height":1068},{"x":571,"y":571,"zoom":572,"background":573},{"link_type":588,"key":1076,"url":1077,"target":1078},"3d4b1534-8d04-4ec3-95f0-9986b487e9c1",{"link_type":31},"2025-01-17T09:00:00+0000","2026-05-13",[],{"dimensions":2378,"alt":2379,"copyright":5,"url":2380,"id":2381,"edit":2382,"preview":2383},{"width":630,"height":631},"Graphic showing two people with graphic arch element in background","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ31lmpbqstJ99JH1_beqom_UnadjustedvsAdjustedBlog_PrismicBanner.jpg?auto=format%2Ccompress&rect=84%2C0%2C2232%2C1260&w=1240&h=700","Z31lmpbqstJ99JH1",{"x":636,"y":571,"zoom":572,"background":573},{"dimensions":2384,"alt":5,"copyright":5,"url":2385,"id":2381,"edit":2386},{"width":639,"height":640},"https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ31lmpbqstJ99JH1_beqom_UnadjustedvsAdjustedBlog_PrismicBanner.jpg?auto=format%2Ccompress&rect=81%2C0%2C2239%2C1260&w=828&h=466",{"x":643,"y":571,"zoom":572,"background":573},[2388],{"product":2389},{"id":69,"type":49,"tags":2390,"lang":13,"slug":71,"first_publication_date":72,"last_publication_date":73,"uid":74,"url":75,"data":2391,"link_type":31,"key":2395,"isBroken":33},[],{"title":657,"icon":2392,"meta_title":1132,"meta_description":1133},{"dimensions":2393,"alt":653,"copyright":5,"url":654,"id":655,"edit":2394},{"width":651,"height":652},{"x":571,"y":571,"zoom":572,"background":573},"943eaf13-9e41-4067-8563-d29e74e0ebcf",[2397],{"topic":2398},{"id":1148,"type":1139,"tags":2399,"lang":13,"slug":1150,"first_publication_date":1151,"last_publication_date":1152,"uid":1150,"data":2400,"link_type":31,"key":2401,"isBroken":33},[],{"title":67,"plural_title":67},"4101677e-9be1-47a2-90c8-481635ddc8c7",[2403,2417,2440,2454,2468,2478,2486,2494,2507,2518,2544,2582,2597,2617,2646],{"variation":689,"version":690,"items":2404,"primary":2405,"id":2416,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2406,"text_size":711,"background_color":712},[2407,2410,2413],{"type":306,"text":2408,"spans":2409,"direction":309},"Perhaps the most frequently cited global pay equity statistic is this: a woman on average earns about 80 cents for every dollar a man earns. This popular pay gap statistic is accurate—but it doesn’t tell the whole story. And it’s not the only way to measure a pay gap.",[],{"type":306,"text":2411,"spans":2412,"direction":309},"There are two types of pay gaps: the unadjusted or uncontrolled pay gap, and the adjusted or controlled pay gap. These measurements are used at different times, and they tell you different things about your workplace.",[],{"type":306,"text":2414,"spans":2415,"direction":309},"In this article, we explain the difference between the adjusted and unadjusted pay gaps, talk about when to use each one, and explain how to calculate the gender pay gap.",[],"article_text$06d7ecbe-ad68-4edd-b1be-15756f2b4405",{"variation":689,"version":690,"items":2418,"primary":2419,"id":2439,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2420,"text_size":711,"background_color":1213},[2421,2424,2427,2430,2433,2436],{"type":695,"text":2422,"spans":2423,"direction":309},"The uncontrolled pay gap and the controlled pay gap",[],{"type":306,"text":2425,"spans":2426,"direction":309},"The main difference between the unadjusted and adjusted pay gap measures is the information they consider. The unadjusted (uncontrolled) pay gap only considers average pay, and it looks at the difference between the average pay for each gender. This is the simpler of the two measures. The mathematical calculation is straightforward and can be done quite quickly.",[],{"type":306,"text":2428,"spans":2429,"direction":309},"That eighty-cents-on-the-dollar statistic? That’s an unadjusted (uncontrolled) pay gap measurement.",[],{"type":306,"text":2431,"spans":2432,"direction":309},"The adjusted (controlled) pay gap considers t other factors that can influence pay, like experience, education, and workplace location. For example, an organization’s female workforce might have less experience on average, and thus be paid less. ",[],{"type":306,"text":2434,"spans":2435,"direction":309},"This may lead to a relatively high unadjusted pay gap but a low adjusted pay gap. In other words, the difference in pay here isn’t due to bias or discrimination, but other factors. To improve pay equity overall, the organization may ask what it can do to reach parity across genders in higher-paying roles, which would narrow the unadjusted pay gap.",[],{"type":306,"text":2437,"spans":2438,"direction":309},"Calculating the adjusted pay gap is much more complex. It requires a mathematical process called regression analysis.",[],"article_text$26bc5def-44d5-4590-b812-f74173094975",{"variation":689,"version":690,"items":2441,"primary":2442,"id":2452,"slice_type":2453,"slice_label":5},[],{"section_id":5,"image":2443,"caption":2451},{"dimensions":2444,"alt":2447,"copyright":5,"url":2448,"id":2449,"edit":2450},{"width":2445,"height":2446},5560,2520,"Graphic showing the difference between adjusted pay gap and unadjusted pay gap.","https:\u002F\u002Fimages.prismic.io\u002Fbeqom-com\u002FZ4oj8ZbqstJ99jnL_unadjustedvsadjusted.jpg?auto=format,compress","Z4oj8ZbqstJ99jnL",{"x":571,"y":571,"zoom":572,"background":573},[],"article_image$6b543137-2aca-46e0-8827-7753cfaf904e","article_image",{"variation":689,"version":690,"items":2455,"primary":2456,"id":2467,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2457,"text_size":711,"background_color":712},[2458,2461,2464],{"type":695,"text":2459,"spans":2460,"direction":309},"Regression analysis: Calculating your adjusted pay gap",[],{"type":306,"text":2462,"spans":2463,"direction":309},"Regression analysis involves a series of regression equations. Specifically, PayAnalytics by beqom uses what’s known as log-linear regression—the industry standard for pay equity research, regulation, and software development.",[],{"type":306,"text":2465,"spans":2466,"direction":309},"A log-linear regression equation looks like this:",[],"article_text$76837238-271d-4ab7-8999-6e15847e0098",{"variation":689,"version":690,"items":2469,"primary":2470,"id":2477,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2471,"text_size":711,"background_color":1200},[2472],{"type":306,"text":2473,"spans":2474,"direction":309},"log(Salary) = Intercept + β1  Gender + β2  Education +  β3 * Experience + …. + error.",[2475],{"start":2336,"end":2476,"type":707},42,"article_text$eacc9deb-adeb-48d9-8738-8cc0686c9308",{"variation":689,"version":690,"items":2479,"primary":2480,"id":2485,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2481,"text_size":711,"background_color":712},[2482],{"type":306,"text":2483,"spans":2484,"direction":309},"Here, β is the regression coefficient, and it explains the influence of each variable. For example, a regression coefficient of 0.03 for education would mean that each additional educational level contributes to a 3% increase in pay. ",[],"article_text$6bfb2419-e34d-435c-b517-48295bfcad67",{"variation":689,"version":690,"items":2487,"primary":2488,"id":2493,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2489,"text_size":711,"background_color":712},[2490],{"type":306,"text":2491,"spans":2492,"direction":309},"A regression analysis also gives us a p-value, which tells us how likely it is that this correspondence found by the regression equation—more education means more pay—is just due to random chance. A low p-value (below 0.05 or 0.1) means the result is “statistically significant,” which means that the influence we are seeing is real.",[],"article_text$070abce7-915d-4878-a4c7-c18d80a359b6",{"variation":689,"version":690,"items":2495,"primary":2496,"id":2506,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2497,"text_size":711,"background_color":2505},[2498],{"type":306,"text":2499,"spans":2500,"direction":309},"In beqom's Pay Equity & Transparency tool, you get these calculations in just a few clicks. To learn more about how our pay equity solution can support your organization or to see a demo, drop us a line.",[2501],{"start":2502,"end":2503,"type":586,"data":2504},188,202,{"link_type":588,"url":2031,"target":590},"Red","article_text$9124b5ad-889f-4b76-a9d0-2ad1fc39ef26",{"variation":689,"version":690,"items":2508,"primary":2509,"id":2517,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2510,"text_size":711,"background_color":712},[2511,2514],{"type":306,"text":2512,"spans":2513,"direction":309},"At the same time, the analysis considers all of these factors in relationship to gender – or whatever demographic category you want to look at. At the end of your regression analysis, you will see the factors that influence pay at your organization. After taking all those factors into consideration, it will become clear if there is a demographic pay gap.",[],{"type":306,"text":2515,"spans":2516,"direction":309},"The beauty of log-linear regression is that you can pick the factors that are important to your organization. For instance, if your industry makes heavy use of professional certifications and employees with more certifications should be compensated more, you can include certification level as a factor in regression analysis.",[],"article_text$2e8625da-9434-4031-a2e9-d8fe853526da",{"variation":689,"version":690,"items":2519,"primary":2520,"id":2543,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2521,"text_size":711,"background_color":712},[2522,2525,2536],{"type":757,"text":2523,"spans":2524,"direction":309},"Whose work are we comparing?",[],{"type":306,"text":2526,"spans":2527,"direction":309},"Regression analysis requires job classification, or breaking your workforce down into job roles that are analytically meaningful and where similar qualities are valued. For instance, engineering jobs and sales jobs might require different educational levels. For employers covered under the EU Pay Transparency Directive, specific job classification practices are required—see our article on defining categories of workers.",[2528,2531],{"start":1194,"end":1195,"type":586,"data":2529},{"link_type":588,"url":2530,"target":1078},"https:\u002F\u002Fwww.payanalytics.com\u002Fis\u002Fjob-classification-three-common-approaches-ebook",{"start":2532,"end":2533,"type":586,"data":2534},391,422,{"link_type":588,"url":2535,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Fdefining-categories-of-workers",{"type":306,"text":2537,"spans":2538,"direction":309},"Another consideration is equal pay for work of equal value. Traditionally, pay equity was thought about in terms of equal pay for equal work.\nNow, it’s more common to consider equal pay for work of equal value. This is because one gender might be dominant in certain job roles, even though the roles themselves might make equal contributions to the organization, and might be similar in terms of employees’ skills, education, and responsibility.\n",[2539,2541],{"start":2013,"end":2540,"type":580},140,{"start":2028,"end":2542,"type":580},209,"article_text$ebb48636-ed1f-4b08-b0d7-9b7290fc2c75",{"variation":689,"version":690,"items":2545,"primary":2546,"id":2581,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2547,"text_size":711,"background_color":712},[2548,2551,2554,2564,2574,2578],{"type":695,"text":2549,"spans":2550,"direction":309},"Reporting for the EU Pay Transparency Directive",[],{"type":306,"text":2552,"spans":2553,"direction":309},"The Directive requires employers to report data related to the gender pay gap and general demographics. Most of this pay gap data will be unadjusted. However, an adjusted measurement may be critical in determining your organization’s compliance.",[],{"type":306,"text":2555,"spans":2556,"direction":309},"While the final legislation may vary a little by country—see our EU Directive transposition activity page for details and nuances—all countries will require the following: an unadjusted measurement of the overall pay gap, plus eight more specific calculations. ",[2557,2561],{"start":1784,"end":2558,"type":586,"data":2559},100,{"link_type":588,"url":2560,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fblog\u002Feu-pay-transparency-directive-transposition-by-country",{"start":2562,"end":2563,"type":580},172,220,{"type":306,"text":2565,"spans":2566,"direction":309},"These calculations include breakdowns by categories of workers and by quartile pay bands, median pay gap measurements, data about variable compensation, and data on raises following leave. (Article 9 of the EU Directive)   ",[2567,2570],{"start":1597,"end":2568,"type":586,"data":2569},62,{"link_type":588,"url":2535,"target":1078},{"start":2571,"end":783,"type":586,"data":2572},206,{"link_type":588,"url":2573,"target":1078},"https:\u002F\u002Feur-lex.europa.eu\u002Feli\u002Fdir\u002F2023\u002F970\u002Foj\u002Feng",{"type":306,"text":2575,"spans":2576,"direction":309},"If the unadjusted measurement of the overall pay gap is 5% or greater, employers will need to provide an adjusted pay gap measurement. This measurement should account for objective, gender-neutral factors like job roles and experience.",[2577],{"start":1874,"end":1454,"type":580},{"type":306,"text":2579,"spans":2580,"direction":309},"If the adjusted pay gap is still 5% or greater, then employers will need to take corrective action in a short time frame (six months), or conduct a joint pay assessment and generate a gender action plan to close the gap. (Article 10) ",[],"article_text$726ad907-17a3-4329-95f0-4091235435fc",{"variation":689,"version":690,"items":2583,"primary":2584,"id":2596,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2585,"text_size":1212,"background_color":1213},[2586],{"type":306,"text":2587,"spans":2588,"direction":309},"Download our free eGuide for more information about the EU Directive: pay equity reporting, pay transparency measures, and how to prepare.  \nTo find out more on the laws in place where your organization operates, please see our local requirements page.",[2589,2591],{"start":571,"end":1345,"type":586,"data":2590},{"link_type":588,"url":1983,"target":1078},{"start":2592,"end":2593,"type":586,"data":2594},228,246,{"link_type":588,"url":2595,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fresources\u002Flocal-requirements","article_text$d060352a-9975-4af0-bfa2-9285ec84e4fd",{"variation":689,"version":690,"items":2598,"primary":2599,"id":2616,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2600,"text_size":711,"background_color":712},[2601,2608],{"type":757,"text":2602,"spans":2603,"direction":309},"Closing a pay gap",[2604,2607],{"start":571,"end":2605,"type":753,"data":2606},17,{"label":772},{"start":571,"end":2605,"type":580},{"type":306,"text":2609,"spans":2610,"direction":309},"Regardless of your market and its reporting requirements, both measurements are important if you want to close or narrow a pay gap.\nIn this case, we advise organizations to start with the unadjusted pay gap—the big picture of any gender discrepancy in pay. Even a small pay gap can mean that there is bias within your organization’s pay structure.  After you’ve planned your response to the unadjusted pay gap, you can then close the adjusted gap.",[2611,2613],{"start":2612,"end":2571,"type":580},173,{"start":2614,"end":2615,"type":580},419,446,"article_text$d44d1926-d1e3-4844-b2e6-ad222fe6fb9e",{"variation":689,"version":690,"items":2618,"primary":2619,"id":2645,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2620,"text_size":711,"background_color":712},[2621,2624,2630,2633,2636,2639,2642],{"type":695,"text":2622,"spans":2623,"direction":309},"How PayAnalytics by beqom can help",[],{"type":306,"text":2625,"spans":2626,"direction":309},"Decades ago, a regression analysis involved hiring a consultant or specialist to solve equations one math problem at a time. PayAnalytics by beqom made a technological breakthrough automating the pay equity analysis process. We deliver log-linear regression calculations with just one click—and present them in a way that is easy to understand.",[2627],{"start":2628,"end":2629,"type":580},181,223,{"type":306,"text":2631,"spans":2632,"direction":309},"You’ll see your unadjusted pay gap, your adjusted pay gap, and the factors that influence pay. You can then break down the data in whatever way you need, including worker categories and pay bands.",[],{"type":306,"text":2634,"spans":2635,"direction":309},"Our software solution also provides:",[],{"type":800,"text":2637,"spans":2638,"direction":309},"Streamlined reporting for many countries—generate compliance-ready reports at the click of a button.",[],{"type":800,"text":2640,"spans":2641,"direction":309}," An industry-leading workplace equity tool—see where your pay gaps are coming from and how to close them.",[],{"type":800,"text":2643,"spans":2644,"direction":309}," A compensation assistant that makes sure each compensation decision preserves pay equity—protect the progress you’ve made.",[],"article_text$5371066b-8a96-4066-9935-7f88f8bd6a52",{"variation":689,"version":690,"items":2647,"primary":2648,"id":2656,"slice_type":714,"slice_label":5},[],{"section_id":5,"content":2649,"text_size":1212,"background_color":1213},[2650],{"type":306,"text":2651,"spans":2652,"direction":309},"Please contact us to learn more about how our Pay Equity & Transparency tool can help your organization.",[2653],{"start":1997,"end":2605,"type":586,"data":2654},{"link_type":588,"url":2655,"target":1078},"https:\u002F\u002Fwww.beqom.com\u002Fcontact-us","article_text$cb4c6e7d-d1e1-48da-b1e3-cfe26ab19950","Adjusted vs. Unadjusted Pay Gaps for EU Reporting | beqom","This article describes and compares the two types of pay gaps: the unadjusted or uncontrolled pay gap and the adjusted or controlled pay gap.",{},"Unadjusted vs. Adjusted Pay Gap","Discover the difference between the two types of pay gaps: the unadjusted pay gap and the adjusted pay gap.","The two types of pay gap","Learn more about the two types of pay gaps to calculate in your pay equity project: the unadjusted or uncontrolled pay gap and the adjusted or controlled pay gap.","3f9f504","All Rights Reserved"]