eu-pay-transparency-directive-snapshot-update

Although the 7 June 2026 transposition deadline has now passed, the implementation landscape remains highly dynamic. Implementation remains fragmented, with only a small number of Member States having enacted final legislation to fully transpose the Directive and many others still developing, consulting on or revising their transposition measures. Significant legal and practical developments are expected during the final quarter of 2026 and into 2027, requiring employers to continue monitoring and preparing for compliance.

This latest snapshot briefing reviews implementation progress across the EU and highlights key areas of emerging divergence, including reporting obligations, employee information rights, remedies and enforcement. It also examines recent European Commission guidance and considers the practical implications of ensuring compliance across jurisdictions.

Key implementation dates

As at September 2026, five Member States have enacted legislation implementing the Directive: Greece, Italy, Lithuania, Malta and Slovakia.

The position continues to evolve rapidly. In recent weeks, additional draft measures have emerged in jurisdictions that had previously not published detailed transposition proposals, including Spain and Portugal. These developments underline that implementation activity remains active.

At the same time, delays remain a significant feature of the transposition landscape. The Netherlands is now expected to miss its planned implementation date of 1 January 2027. Meanwhile, the European Commission is reportedly considering infringement action against Sweden in response to its failure to transpose the Directive within the required timeframe. These developments highlight the increasingly fragmented implementation picture across the EU and reinforce the need for employers to continue preparing for compliance notwithstanding national delays.

See our briefing, The impact of delayed transposition, and our at-a-glance-table at the end of this briefing for further details.

Areas of variation by jurisdiction

While the Directive sets minimum harmonised standards, Member State approaches are already diverging in several key respects. Scope thresholds vary, with some jurisdictions lowering reporting triggers below the Directive baseline. The content and methodology of reporting obligations also differ, including the definition of pay, treatment of variable remuneration, comparator groups and approaches to job evaluation, often reflecting existing national frameworks and workforce engagement structures.

Differences are also emerging in employee information rights, including response times and disclosure obligations, particularly where the Directive is being layered onto pre-existing pay transparency regimes. Member States are further taking different approaches to sanctions, compensation and evidential rules, meaning that compliance with broadly equivalent standards may not result in equivalent legal risk.

In addition, practical implementation is likely to vary as Member States publish guidance, reporting frameworks, digital tools and other compliance resources. The scope of these materials differs considerably and may influence how pay transparency obligations are applied in practice.

Definition of pay

The definition of "pay" is central to the Directive because it determines which remuneration elements must be taken into account for recruitment pay disclosures, employee information requests, gender pay gap reporting, joint pay assessments and equal pay comparisons.

The Directive adopts a deliberately broad concept of pay, making it one of the most significant practical compliance challenges for employers. To assist with interpretation, the European Commission has recently published FAQs, which in relation to the question “Which elements of pay must be included for the purposes of pay transparency measures?” clarifies that:

“Employer’s contributions to occupational schemes always need to be taken into account”
“It may not be useful to include:
- Payments and benefits in cash or in kind that are not subject to any eligibility criteria and are collectively paid to all employees without any exceptions (same amount or benefit to every employee). For example, lunch vouchers, smartphones, laptops, Christmas gift cards, collective learning courses, etc. would not need to be included, provided that they are benefits that are available to all workers without preconditions or exceptions
- Payments and benefits in cash or in kind that are accessible to workers on a voluntary basis, without eligibility criteria and without exception (e.g. gym membership)
“Statutory social security benefits and benefits deriving from them, are not considered as pay.”

The treatment of equity-based incentives remains a point of uncertainty. Based on the wide definition of pay in the Directive, there is a risk that they need to be included, although this could ultimately depend on national implementing legislation, future guidance and the design of the relevant incentive plan.

See the European Commissions’ page for access to the FAQs.

Job evaluation and classification guidelines

Job evaluation and classification frameworks are a key focus area for many employers because they underpin the assessment of work of equal value and the operation of several core obligations under the Directive.

The recent publication of the European Commission's EU-wide guidelines on gender-neutral job evaluation and classification provide further insight into how employers can demonstrate that work is of equal value. The guidelines highlight the importance of objective, gender-neutral criteria and encourage employers to adopt structured approaches to assessing roles, including consideration of skills, responsibilities, effort and working conditions.

While the guidelines are not legally binding, they are likely to influence how national authorities, courts and equality bodies assess compliance. Employers that already operate global grading or job architecture frameworks should review whether those arrangements adequately support equal value assessments and can withstand scrutiny under the Directive.

The guidelines also highlight the importance of documentation and governance. Employers should be able to explain how roles are evaluated, why jobs are grouped together and how pay decisions are made, as these issues are likely to become increasingly significant in the context of information requests, pay assessments and equal pay litigation.

See our briefing EU Pay Transparency Directive: Job evaluation and classification guidelines.

A local or EU-wide approach?

The fragmented implementation landscape raises a key strategic question: should employers wait for national laws in all operating locations to take effect, or adopt a broader EU-wide approach?

An EU-wide approach can promote consistency, scalability and earlier identification of pay-related risks, while helping organisations prepare for the potential effects of the Directive even where implementation is delayed. However, it requires robust and sufficiently consistent pay structures, reliable cross-border data and flexibility to accommodate local legal differences. By contrast, a local approach allows employers to respond to jurisdiction-specific requirements, including any gold-plating, enforcement practices and existing national frameworks.

For many multinational organisations, a hybrid model is likely to be the most practical solution, combining common pay principles, governance and job architecture with local implementation tailored to national legal requirements and workforce realities.

Data protection considerations

Alongside pay and reward considerations, organisations should not overlook the data protection implications of implementation.

Compliance with the Directive will require employers to process and disclose significant volumes of workforce data, often across multiple jurisdictions. Organisations should therefore assess early how pay transparency obligations interact with their obligations under the GDPR and local data protection laws, particularly where individual pay data may be capable of identifying employees indirectly.

Particular attention should be given to employee information requests, gender pay gap reporting and any pay assessments undertaken following the identification of unjustified pay gaps. Employers should establish clear governance arrangements regarding access to pay data, retention periods, security measures and decision-making responsibilities. For multinational organisations, it will also be important to consider cross-border data flows and consistency of approach. A robust privacy framework can help reduce legal risk while enabling the organisation to meet transparency obligations effectively.

See our briefing EU Pay Transparency Directive: Data protection.

How we can help

Despite continued delays in some jurisdictions, organisations should continue to use this period to prepare. Organisations that use this time to test reporting methodologies, review pay structures, assess potential legal risks and establish appropriate governance frameworks will be better placed to adapt efficiently as legislative requirements are finalised and pay transparency obligations become clearer.

You can track the latest developments on our Navigating Global Pay interactive site, as well as access to essential FAQs, timelines, a summary of the Directive, a glossary and briefings. Request access to our site here.

With our established equal pay practice, we are ideally placed to support employers with their pay transparency readiness, with some of our recent work in this respect including:

advising on how to structure the project to maximise privilege and the confidentiality of sensitive pay data and potential gaps
reviewing pay architecture through the lens of work of equal value to ensure compliance with the Directive
conducting pay gap analyses against current practices
advising on local legal developments
developing action plans
drafting EU consistent templates and processes
delivering training

Local transposition progress – a snapshot

The table below reflects the position as at September 2026. Developments continue to occur at pace. Request access to our Navigating Global Pay interactive site for further details.

Member State	Status of implementation	Expected timings	Example differences from the Directive’s requirements
Austria	On 6 June 2026, the Labour Minister submitted the draft legislation to the government’s political coordination. Once it becomes a formal Ministerial Draft, it will then enter public consultation.	Transposition date currently unknown.	N/A
Belgium	Partial transposition at regional level has taken place: public sector within the competence of the French Community: 1 January 2025 public sector in Flanders: 18 June 2026 Federal draft awaited.	Full transposition date currently unknown.	Pre-existing Belgian law requires employers that usually employ at least 50 employees to undertake a periodic analysis of their remuneration structure.
Bulgaria	Draft legislation published. The draft law entered into public consultation between May and June 2026 and the government published its report on the consultation feedback received on 11 August 2026. On 11 September 2026, the Council of Ministers submitted a revised draft bill to the National Assembly.	The draft envisages reporting from 7 June 2027 for employers with at least 150 workers, subject to enactment of the final legislation.	Employer discretion on timing and format of pay information at recruitment stage Annual reminder of right to request information by 31 January Where a gender pay gap of at least 5% is identified, employers must provide a formal justification to the Commission for Protection Against Discrimination
Croatia	Draft legislation awaited	Transposition date currently unknown	N/A
Cyprus	Draft legislation was published for consultation. The consultation has closed and the final legislative outcome is awaited.	Transposition date currently unknown	Pay information must be provided in writing before the interview.
Czech Republic	Partial transposition took effect on 1 June 2025, including restrictions on pay-secrecy clauses. Draft legislation covering the remaining requirements has been published; the latest draft was approved on 31 August 2026.	Full transposition expected by 1 January 2027. The first report for companies with 150 or more employees will be 2028.	The timing of pay disclosures to applicants (before the employment relationship is established) The content of the disclosure to applicants (minimum remuneration, rather than initial pay) Limitations on employee requests for pay information (limited to once per calendar year) Gender pay gap reporting process (the report is prepared by the Ministry of Labour and Social Affairs, based on data submitted by employers through a unified monthly reporting system, rather than by employers themselves)
Denmark	Draft legislation published.	Transposition expected 1 January 2027. The first report for companies with 150 or more employees will be 1 September 2028.	Reports are generated by Statistics Denmark using the existing classification of employees according to a 6-digit DISCO code
Estonia	Some elements of the EU Pay Transparency Directive have been transposed re: recruitment. Draft legislation is awaited regarding the remaining elements.	Partial transposition from 13 July 2026. Full transposition date currently unknown.	N/A
Finland	On 9 July 2026, a proposal was submitted to Parliament to amend the Act on Equality between Women and Men; the Act on the Ombudsman for Equality; the Act on the Incomes Information System; the Act on Statistics Finland; and the Act on the Enforcement of Fines.	All Acts are expected to enter into force on 1 January 2027.	Statistics Finland would compile specified pay information using data reported to the Incomes Register.
France	Draft legislation published, the latest version being made publicly available on 10 September 2026 after it was presented to the Council of Ministers.	Transposition date currently unknown, expected to be adopted before April/May 2027. Staggered implementation.	Recruitment pay information may be given in the job advertisement or, if not included there, in writing before the interview Reporting applies to employers with 50 or more employees Replacement of the current Gender Equality Index with an indicator model aligned with the Directive A tiered process for determining categories of workers (now simplified in the latest draft to remove branch agreement as a direct tier) Narrowed pay secrecy prohibition, limited to clauses in the employment contract A dual-path model remedial procedure for unjustified pay gaps
Germany	On 16 July 2026, the Federal Ministry for Education, Family Affairs, Senior Citizens, Women and Youth confirmed that preparatory work for a draft law on the low-bureaucracy implementation of the Directive is ongoing and that individual questions relevant to its implementation are still being clarified. No draft law has been published at this stage.	Transposition date currently unknown	N/A
Greece	Law No. 5316 entered into force on 6 July 2026 and fully transposes the Directive.	Certain substantive obligations, including the worker information right, reporting and joint pay assessments, are stated to apply from 1 November 2026.
Hungary	The Government is understood to be preparing transposition legislation and to have undertaken stakeholder discussions, but no draft has yet been published. The precise legislative stage and timetable have not been publicly confirmed.	Transposition date currently unknown.	N/A
Ireland	Draft legislation published (the Equality (Miscellaneous Provisions) Bill 2024 - partial transposition re: recruitment stage). Heads are in preparation for a separate Pay Transparency Bill to transpose the remaining aspects.	As of 1 June 2025, the threshold for reporting was lowered to employers with 50+ employees. No timeline for transposition of the Directive.	Existing gender pay-gap reporting applies to employers with 50 or more employees Existing Irish law requires publication of the gender pay-gap report on the employer’s website or another publicly accessible location The proposed recruitment provisions would require the applicable salary or salary range to be stated in the job advertisement
Italy	Legislative Decree no. 96/2026 is in force.	In force since 7 June 2026	National collective bargaining agreements are the primary reference point for worker categories and assessing equal value “Pay level” excludes non-structural individual pay components
Latvia	Draft legislation published.	Transposition date currently unknown	Slightly different definition of pay
Lithuania	Law No. XV-969 and Order No. A1-433 in force.	While the majority of the transposition measures entered into force on 7 June 2026, certain provisions will only become applicable from 31 December 2026 and 1 January 2027.	Salary / ranges must be in job advertisements Employers must submit specified employment and remuneration data to Sodra, which will calculate specified reporting indicators centrally
Luxembourg	Draft legislation awaited	Transposition date currently unknown	N/A
Malta	Fully transposed through the Equal Pay (Transparency and Reporting) Regulations 2026.	7 June 2026.	During recruitment, employers are required to provide the initial pay or pay range and any collective agreement pay provisions relating to the role before the start of employment Employers must respond within 8 days of right to information requests Employers with 25 or more workers must document pay-setting and pay-progression criteria in writing 10 working day deadline for submitting completed joint pay assessments to the Monitoring Body Stringent penalties for non-compliance
Netherlands	On 2 September 2026, the Dutch Minister of Social Affairs and Employment published a general parliamentary memorandum on the draft legislative proposal.	The proposed implementation date of 1 January 2027 will not be met. Parliamentary debate is scheduled for the week beginning 11 January 2027. The draft envisages the first report for employers with at least 150 workers by 7 June 2028.	Employer discretion on timing and format of pay information at recruitment stage Agency workers covered Works council consent would be required for decisions introducing, changing or withdrawing remuneration or job-grading systems. Worker-representation requirements would also apply in connection with joint pay assessments
Poland	Partial transposition has taken place (24 December 2025). Draft legislation has been published for the remaining elements.	Remaining elements expected to enter into force by 1 January 2027. The first report for companies with 150 or more employees will be 7 June 2027.	Prescriptive timing/ format of providing pay information at the recruitment stage “Supplementary or variable components” exclude remuneration based on the employee’s personal grade Responses to worker requests for pay information within 30 days
Portugal	Draft legislation published (partial transposition).	Full transposition date currently unknown; further implementing legislation is expected.	Employers with 50 or more employees will be subject to reporting obligations Courts are empowered to award compensation on their own initiative Joint pay assessment within 45 days with worker representatives and corrective measures within 90 days Three-year presumption of retaliatory action
Romania	Draft law published. The time period for the Senate to debate, amend, and formally vote on the Revised Law expired on 2 September 2026.	Transposition date currently unknown. The first report for companies with 150 or more employees will be 7 June 2027.	The criteria used to determine work of equal value are similar to those set out in the Directive, with the added criterion of “knowledge” Responses to worker requests for pay information within 30 days Timescale for remediation is 90 working days
Slovakia	Act on Equal Pay for Men and Women for Equal Work or Work of Equal Value in force.	Law entered into force on 7 June 2026 with transitional provisions (compliant remuneration structures by 31 July 2026; first report for companies with 150 or more employees from 2027; right to information on average pay levels from 2028).	Phased roll-out After first reports, reporting by 15 April of the following calendar year
Slovenia	Draft legislation awaited	Transposition date currently unknown	N/A
Spain	On 3 August 2026, the Ministry of Labour and Social Economy published a draft Royal Decree and opened a public consultation that ran to 24 August 2026.	Transposition date currently unknown.	Detailed gender pay gap reporting to a new monitoring body Threshold for reporting of 50 or more employees Enhanced pay audits
Sweden	On 8 June 2026, the government instructed the Equality Ombudsman to continue preparing for the implementation of the Directive, which must submit a report to the government by no later than 1 November 2027.	A legislative proposal was referred to the Council on Legislation, but the Government subsequently paused the implementation process while seeking changes to the Directive. No revised timetable for enactment or entry into force has been confirmed.	The referral to the Council on Legislation proposes a deadline of 20 May in the year in which the reporting obligation applies for the submission of the gender pay gap report to the Equality Ombudsman.

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