The EU Pay Transparency Directive — A Complete Guide
Everything you need to know about Directive 2023/970: salary range requirements in job postings, reporting obligations, reversed burden of proof, and the 5% threshold for joint pay assessments.
What is Directive 2023/970?
The EU Pay Transparency Directive (2023/970) was adopted on 10 May 2023 and aims to strengthen the application of the principle of equal pay for equal or equivalent work between men and women. The directive introduces binding pay transparency requirements that all EU member states must implement into national legislation by 7 June 2026.
Salary Ranges in Job Postings
According to Article 5, employers must inform job applicants about the starting salary or salary range for the advertised position — either in the job posting or before the job interview. It will also be prohibited to ask candidates about their current or previous salary history.
Reporting Obligations (Article 9)
Employers with at least 100 employees must regularly report pay gaps to the competent authority. The report must include: the mean and median pay gap between women and men, pay gap broken down by complementary components, the proportion of women and men in each pay quartile, and the pay gap by category of worker.
The 5% Threshold and Joint Pay Assessments
If the pay gap exceeds 5% in any category of worker and the employer cannot justify the difference with objective, gender-neutral factors, a joint pay assessment must be conducted together with worker representatives within six months. The assessment must identify causes, remedial measures, and follow-up.
Reversed Burden of Proof
The directive introduces a reversed burden of proof in pay discrimination disputes. This means that if an employee can demonstrate a pay gap, it is the employer's responsibility to prove that the difference is not due to gender. This is a significant change that strengthens workers' rights.
Implementation Timeline
Member states have until 7 June 2026 to transpose the directive into national law. Sweden has commissioned an inquiry (SOU 2024:40) that proposed the new rules take effect on 1 January 2027. The first pay gap report must be submitted to the Equality Ombudsman (DO) by 20 May 2028 for employers with 100+ employees.