The EU Pay Transparency Directive, in plain terms
Directive (EU) 2023/970 strengthens the principle of equal pay for equal work or work of equal value through pay transparency and enforcement. The transposition deadline was 7 June 2026. National rules now differ from one member state to the next, and some have yet to adopt theirs.
Who must report, and when
Employers with 250 or more workers report their gender pay gap annually, with the first report due by 7 June 2027. Employers with 150–249 workers report every three years, also first by 7 June 2027. Employers with 100–149 workers report every three years, first by 7 June 2031. Below 100 workers, reporting is not mandatory but transparency duties still apply.
The 5% rule
Where reporting reveals a gender pay gap of at least 5% in any category of workers that cannot be justified on objective, gender-neutral criteria and is not remedied within six months, the employer must carry out a joint pay assessment together with workers' representatives.
Before employment
Employers must inform applicants of the starting pay or its range before the interview, and may not ask candidates about their pay history. Job titles and criteria must be gender-neutral.
The right to information
Workers may request information on their individual pay level and on average pay levels, broken down by sex, for categories of workers doing the same work or work of equal value. Employers must respond within two months.
Comparing pay fairly: full-time equivalent
Because part-time work is done disproportionately by women, comparing raw pay would understate the gap. Parmetra normalises every salary to a full-time equivalent (a worker on half hours is compared at the full-time rate), so the reported gap reflects the rate of pay for the work, not how many hours each person happens to work.
How pay is set and how it progresses (Art. 6)
Employers must make easily accessible the objective, gender-neutral criteria used to set pay and to determine pay progression. Workers are entitled to know the basis on which their pay is decided and advances. Parmetra records these criteria and keeps them ready to share.
Joint pay assessments (Art. 10)
Where a category shows a pay gap of at least 5% that the employer cannot justify on objective, gender-neutral criteria and does not close within six months, a joint pay assessment must be carried out together with workers' representatives. It documents the workforce by sex, average pay levels, the differences and their reasons, and the remedial measures taken. Parmetra structures this record end to end.
Free tool · Article 9
Gender pay-gap calculator
Work out the figures Article 9 of the Pay Transparency Directive asks for, from your own roster, in your browser. No account, no upload, no email address.
This summary is for orientation only and is not legal advice.