Sweden's Implementation — SOU 2024:40
How Sweden is implementing the directive through a new Chapter 3a in the Discrimination Act. The timeline from SOU 2024:40 to new rules on 1 January 2027 and first DO report on 20 May 2028.
Background: SOU 2024:40
In May 2024, the inquiry 'Implementation of the Pay Transparency Directive' (SOU 2024:40) presented its proposals for how Sweden should implement the EU directive. The inquiry proposes a new Chapter 3a in the Discrimination Act that consolidates the new rules on pay transparency.
New Chapter 3a in the Discrimination Act
The new chapter regulates pay transparency for job seekers, employees, and employers. It covers requirements for salary ranges in job postings, prohibition of salary history questions, employees' right to pay information, and reporting obligations to the Equality Ombudsman (DO).
Enhanced Pay Audits
Sweden already has requirements for annual pay audits under Chapter 3 of the Discrimination Act. The EU directive adds new elements: reporting to DO (not just internally), joint pay assessments at the 5% threshold, and detailed quartile reporting. The inquiry proposes integrating these requirements with existing rules.
DO as Supervisory Authority
The Equality Ombudsman (DO) is proposed to become the competent authority that receives pay gap reports and exercises supervision. DO will receive expanded powers to review reports, request supplementary information, and if necessary take action against employers who do not meet the requirements.
Timeline
The inquiry proposes that the rules take effect on 1 January 2027. Employers with 250+ employees must submit their first report by 20 May 2028 (based on 2027 data). Employers with 100–249 employees have an extended deadline until 2031. Companies with fewer than 100 employees are not covered by the reporting requirements.
Sanctions and Penalties
The inquiry proposes that employers who fail to meet reporting requirements may be subject to penalty orders from DO. In addition, the right to damages in pay discrimination cases is strengthened, and the burden of proof is reversed in pay discrimination cases in accordance with the EU directive.