The EU Pay Transparency Directive’s Progress Explained

Quick Hits

• Despite the EU Pay Transparency Directive having entered into force in June 2023, giving member states three years to transpose it into national law, only three member states have published partially finalised drafts: Belgium (Fédération Wallonie-Bruxelles), Malta, and Poland.
• Core obligations span a ban on salary history and transparency on pay levels during recruitment; pay information rights; gender-neutral pay structures; and mandatory pay gap reporting for employers with 100 or more employees from 2031, and, beginning June 2027, for employers with 150 or more employees.
• Employers must prepare now or risk noncompliance from June 2026.

Core Obligations Set Out in the EU Pay Transparency Directive

The Directive’s core framework is not subject to national negotiation. From 7 June 2026, employers across the European Union will be bound by the following core obligations:

• Recruitment transparency: Employers must provide job applicants with information on the initial pay level or pay range, typically in the job vacancy or before the first interview, and must not ask candidates about their previous salaries.
• Workers’ right to information: Employees can request in writing information on their individual pay levels and the average pay for workers of the opposite gender performing the same work or work of equal value.
• Pay secrecy prohibitions: Contractual clauses that prohibit employees from disclosing their pay or that of colleagues performing work of equal value are prohibited.
• Gender-neutral pay structures: Salaries must be based on objective, gender-neutral criteria, such as skills, experience, responsibility, and working conditions, and employers must be able to demonstrate how the criteria have been applied.
• Pay gap reporting requirements: Employers with between 100 and 149 employees will have to calculate and publish gender pay gap statistics by 7 June 2031 and every three years after that. By 7 June 2027, employers with 250 or more employees will have to report annually using 2026 pay data, and employers with between 150 and 249 employees will have to report every three years using 2026 pay data. Where a pay gap within a worker category is 5 percent or more and cannot be justified by objective, gender-neutral reasons and remedied within six months, employers will be required to conduct a joint pay assessment with employee representatives and implement remedial measures.

Directive Implementation Progress

The Netherlands has already announced expected delays, possibly until January 2027, and there are fears that other countries may also experience similar delays. However, the European Commission has recently reiterated that it expects all EU member states to complete their implementation of the EU Pay Transparency Directive by the 7 June 2026 deadline.

Belgium (Fédération Wallonie-Bruxelles) has taken one of the most advanced steps, with a draft decree that already introduces gender pay gap reporting and pay transparency obligations for certain sectors.

Malta has published a draft bill that largely mirrors the Directive’s requirements, including pay transparency in recruitment, pay information rights, and pay gap reporting. Malta has already introduced obligations focused specifically on the Directive’s pre-employment salary disclosure requirements and the right of employees to request pay information, which came into effect on 27 August 2025. However, the remaining provisions of the Directive’s implementation have not yet received final parliamentary approval.

Poland has also published a draft bill implementing the Directive, with some transparency measures already in force and full implementation planned ahead of the June 2026 deadline.

Other EU member states, including Cyprus, Finland, Germany, Ireland, Lithuania, Slovakia, and Sweden, have announced or published partial drafts. These drafts remain subject to change as they undergo review processes in their relevant countries.

What Does This Mean for Employers?

The slow progress of the Directive’s implementation may mean that employers face shorter deadlines than first anticipated. Employers located in or subject to local laws in a member state that has yet to make an announcement may wish to consider the framework for preparation set out in the Directive. It is also important to consider that member state requirements may exceed the minimum requirements of the Directive and impose stricter obligations or penalties.

Employers that fail to prepare now for the June 2026 implementation deadline may find themselves inadequately prepared and at risk for noncompliance with the Directive’s requirements. Employers are encouraged to stay informed about the implementation process in their respective jurisdictions. Information and updates on the progress of the Directive’s implementation across the European Union can be found using Ogletree Deakins’ Member State Implementation Tracker.

Further information can also be found by listening to our podcast, “Understanding the EU Pay Transparency Directive: What Employers Need to Know.”

Ogletree Deakins’ London office, Pay Equity Practice Group, and Workforce Analytics and Compliance Practice Group will continue to monitor developments and will provide updates on the Cross-Border, Pay Equity, and Workforce Analytics and Compliance blogs as additional information becomes available.

Daniella McGuigan is a partner in the London office of Ogletree Deakins and co-chair of the firm’s Pay Equity Practice Group.

Lorraine Matthews, a practice assistant in the London office of Ogletree Deakins, contributed to this article.

Emilia Mobius, a paralegal in the London office of Ogletree Deakins, contributed to this article.

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