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EU Pay Transparency Directive

Started by Stargames ®, June 16, 2026, 05:45:19 PM

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EU Pay Transparency Directive

The EU's Pay Transparency Directive aims to ensure that women and men receive the same pay for equal work or work of equal value. Employers must also be able to demonstrate that they comply with it in practice. The directive applies to all companies, regardless of size.

The obligations of the directive concern companies from many different perspectives. Here are the most important points in summary.

Equal pay in practice. Employers must have pay structures that ensure that equal pay is paid for equal work or work of equal value. The assessment is based on gender-neutral criteria, such as qualifications, workload, responsibility and working conditions.

Transparency in recruitment. Job seekers have the right to be informed of the starting salary or its range before the start of the employment relationship. Employers may no longer inquire about the applicant's previous salary history. Job advertisements and job titles must also be gender-neutral.

Transparency in salary formation. The employer must provide employees with information in an easily accessible form about how their pay and pay trends are determined.

Employee right to information. Employees have the right to request information about their own pay level and the average pay of those doing the same or equivalent work, broken down by gender. The information must be provided within two months of the request. The employer must also remind employees of this right annually.

Reporting on pay gaps. Reporting is tiered according to company size: companies with at least 100 employees report on the gender pay gap. Companies with more than 250 employees report annually, companies with 100–249 employees every three years. Employers with fewer than 100 employees can report voluntarily.

Stargames Oy complies with the European Union's Pay Transparency Directive.

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