What do you need to know about the EU Pay Transparency Directive?

Susan Doris-Obando discusses the upcoming deadline and explores the potential challenges and opportunities for professionals amid the policy change.

The EU Pay Transparency Directive, which is set to come into effect by 7 June 2026, is a policy that will “significantly reshape employment law around pay transparency within the EU,” explained Susan Doris-Obando, an employment partner at Dentons Ireland.

She said, “The intent is to reduce the EU gender pay gap, which currently stands at around 12pc, by having greater transparency around pay and making it easier for employees to bring equal pay claims.”

Initially brought into effect in June 2023, EU member states were told that they would have until the upcoming 2026 deadline to implement the directive. This means employers will have to acknowledge a number of changes in hiring and the dissemination of employment-relevant information.

Doris-Obando explained, “During the hiring process, employers will be required to provide candidates with information on initial pay or pay ranges and ensure that job vacancy notices and job titles are gender-neutral and recruitment procedures are conducted in a non-discriminatory manner.