[et_pb_section fb_built=»1″ _builder_version=»4.16″ _module_preset=»default» custom_margin=»0px||0px||false|false» custom_padding=»0px||0px||false|false» global_colors_info=»{}»][et_pb_row _builder_version=»4.16″ _module_preset=»default» custom_margin=»0px||0px||false|false» custom_padding=»0px||2rem||false|false» global_colors_info=»{}»][et_pb_column type=»4_4″ _builder_version=»4.16″ _module_preset=»default» global_colors_info=»{}»][et_pb_text _builder_version=»4.19.5″ _module_preset=»default» global_colors_info=»{}»][\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=»1″ _builder_version=»4.16″ _module_preset=»default» custom_margin=»0px||0px||false|false» custom_padding=»0px||0px||false|false» global_colors_info=»{}»][et_pb_row _builder_version=»4.16″ _module_preset=»default» custom_margin=»0px||0px||false|false» custom_padding=»0px||1rem||false|false» locked=»off» global_colors_info=»{}»][et_pb_column type=»4_4″ _builder_version=»4.16″ _module_preset=»default» global_colors_info=»{}»][et_pb_text _builder_version=»4.27.6″ _module_preset=»default» text_font=»|300|||||||» global_colors_info=»{}»]<\/p>\n
The EU Pay Transparency Directive will in the coming years change the way many organisations work with pay, recruitment, and documentation.<\/p>\n
The directive, which was adopted by the European Parliament in May 2023, aims to reduce gender-based pay gaps and create greater transparency around pay in the labour market. All EU countries must implement the rules into national legislation no later than 7 June 2026.<\/p>\n
For Danish companies, the directive means, among other things, new requirements for pay reporting, documentation of pay structures, and increased transparency in recruitment processes.<\/p>\n
Although the final Danish implementation is still being clarified, it is already clear that the directive will affect both HR processes, pay policy, and employer branding in many organisations.<\/p>\n
[\/et_pb_text][et_pb_accordion _builder_version=»4.27.6″ _module_preset=»default» hover_enabled=»0″ global_colors_info=»{}» sticky_enabled=»0″][et_pb_accordion_item title=»In short: the Pay Transparency Directive» open=»on» _builder_version=»4.27.6″ _module_preset=»default» body_font=»|300|||||||» hover_enabled=»0″ global_colors_info=»{}» toggle_level=»h2″ sticky_enabled=»0″]<\/p>\n
The EU Pay Transparency Directive introduces a number of common minimum rules for pay transparency across member states.<\/p>\n
The directive includes, among other things:<\/p>\n
The aim is to make it easier to identify and reduce pay differences between men and women for work of equal value.<\/p>\n
Read more about the EU Pay Transparency Directive here<\/a><\/p>\n [\/et_pb_accordion_item][\/et_pb_accordion][et_pb_text _builder_version=»4.27.6″ _module_preset=»default» text_font=»|300|||||||» global_colors_info=»{}»]<\/p>\n The Pay Transparency Directive establishes common EU rules aimed at creating greater transparency around pay in both private and public organisations.<\/p>\n The directive is based on the principle of equal pay for equal work or work of equal value and is intended to make it easier for employees to identify and challenge potential pay differences.<\/p>\n For employers, this means, among other things, that pay structures must be based on objective and gender-neutral criteria, and that companies must to a greater extent be able to document how pay is determined.<\/p>\n The directive includes several specific requirements for employers.<\/p>\n [\/et_pb_text][dsm_icon_list icon_color=»#1EAEE2″ icon_gap_width=»1.5em» icon_font_size=»20px» list_vertical_alignment=»flex-start» list_space_between=»10px» list_padding=»||||false|false» _builder_version=»4.27.6″ _module_preset=»default» text_font=»|300|||||||» custom_padding=»||||false|false» locked=»off» global_colors_info=»{}»][dsm_icon_list_child text=»Right to pay information: Employees have the right to receive information about their individual pay level as well as average pay levels, broken down by gender, for employees performing the same or equivalent work. If the information is unclear, employees can request clarification and receive a reasoned response.» font_icon=»=||divi||400″ _builder_version=»4.27.6″ _module_preset=»default» global_colors_info=»{}»][\/dsm_icon_list_child][dsm_icon_list_child text=»Requirements for pay structures: Companies must be able to categorise roles into groups where employees perform the same or equivalent work. In addition, employers must describe the objective criteria underlying pay determination \u2013 for example experience, responsibility, and performance.» font_icon=»=||divi||400″ _builder_version=»4.27.6″ _module_preset=»default» global_colors_info=»{}»][\/dsm_icon_list_child][dsm_icon_list_child text=»Reporting of pay gaps: Companies with more than 100 employees must report on pay differences between men and women. The reporting requirements depend on the size of the company: 250+ employees: reporting annually 100\u2013249 employees: reporting every three years If the reporting shows a pay gap of more than 5% that cannot be explained by objective criteria, the company must conduct a joint pay assessment with employee representatives.» font_icon=»=||divi||400″ _builder_version=»4.27.6″ _module_preset=»default» global_colors_info=»{}»][\/dsm_icon_list_child][dsm_icon_list_child text=»Reversed burden of proof: If a company has not complied with its obligations under the directive, the burden of proof in a potential equal pay case will be reversed. This means that the employer must be able to demonstrate that there has been no discrimination.» font_icon=»=||divi||400″ _builder_version=»4.27.6″ _module_preset=»default» global_colors_info=»{}»][\/dsm_icon_list_child][\/dsm_icon_list][et_pb_text _builder_version=»4.27.6″ _module_preset=»default» text_font=»|300|||||||» hover_enabled=»0″ locked=»off» global_colors_info=»{}» sticky_enabled=»0″]<\/p>\n One of the most concrete changes introduced by the Pay Transparency Directive relates to the recruitment process.<\/p>\n Going forward, job applicants must have access to information about starting salary or salary range for a position \u2013 for example in the job posting or early in the recruitment process.<\/p>\n In addition, employers may no longer ask candidates about their previous salary or salary history.<\/p>\n For many organisations, this means that recruitment processes must become more structured and transparent. Clear salary ranges, documented evaluation criteria, and consistent hiring processes will become increasingly important in terms of both compliance and employer branding.<\/p>\n Work on pay transparency is therefore closely linked to other themes such as bias in recruitment<\/a> and diversity in leadership<\/a>, where objective evaluation criteria and structured processes play a central role.<\/p>\n Although the directive must be implemented into national legislation by 2026, many organisations are already choosing to begin preparations.<\/p>\n Typical first steps may include:<\/p>\n Companies that start early often find it easier to adapt processes and communication when the rules come into force.<\/p>\n For HR and leadership, the Pay Transparency Directive means that work with pay is increasingly becoming a strategic issue.<\/p>\n Transparency around pay can influence organisational culture, employee engagement, and trust within the organisation.<\/p>\n Companies that actively work with fair pay structures and clear communication can also strengthen their employer brand and appear more attractive to candidates in a competitive talent market.<\/p>\n At Compass Human Resources Group, we closely follow developments related to the Pay Transparency Directive.<\/p>\n As a recruitment partner, we continuously work to translate new requirements into practice within recruitment processes, enabling our clients to make decisions on a more transparent and well-documented basis.<\/p>\n Increased transparency around pay will in many cases lead to more structured recruitment processes \u2013 and thereby a better foundation for both candidates and companies.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The EU Pay Transparency Directive introduces new rules designed to reduce gender-based pay gaps and increase openness around salaries.What is the Pay Transparency Directive?<\/h2>\n
What requirements does the directive place on companies?<\/h2>\n
How does pay transparency affect recruitment?<\/h2>\n
What should companies do already now?<\/h2>\n
\n
What does pay transparency mean for HR and leadership?<\/h2>\n
Compass follows developments closely<\/h2>\n
\nLearn what the directive means for Danish employers \u2014 from documentation and reporting to transparency in recruitment \u2014 and how Compass is preparing to support clients in this transition.<\/p>\n","protected":false},"author":3,"featured_media":285661,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[85],"tags":[],"class_list":["post-285660","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-no"],"acf":[],"yoast_head":"\n